10 Things You Need to Know About Trustee Sales Before Bidding

The most potentially profitable and the most potentially dangerous way to buy real estate is buying a foreclosure on the court house steps.  In California, they are called Trustee’s Sales, in some states they are called Sheriff’s Sales.

What is a Trustee Sale?

A Trustee’s Sale is a non-judicial forced auction sale to the highest oral bidder conducted by the Trustee who has the power to sell the property. That’s a mouthful.  Savvy investors have learned that many of the most profitable opportunities are found at Trustee’s Sales; they’ll also admit that even the smartest can make costly mistakes.

10 Things You Should Know Before You Bid on the Court House Steps

Here are some things you should know about Trustee’s Sales before you start down the stairway of dreams.

• Only the Lien Position held by the Beneficiary (Lender) Is Being Sold; Lien Position Based on Recording Date
  
• Bids are All Cash; No Loan, No Lender and No Loan Contingency
  
• All Sales are Final; No Grounds for Rescission of Valid Trustee’s Sale
  
• Winning Bidder Responsible for All Senior Liens; Junior Liens Wiped Out
  
• Winning Bidder Receives a Trustee’s Deed; Similar to Quitclaim Deed
  
• No Title Report; No Title Insurance
  
• No Inspections; Accessibility to Interior of Property Highly Unusual
  
• No Disclosures; Beneficiary Exempt from Typical Disclosure Requirements
  
• No Warranty; Clear Title is Not Guaranteed
  
• Possession to the Property Is Not Automatic; It May be Subject to Tenant’s Rights
  

Clearly, Trustee’s Sales are the classic “high risk – high reward” investment endeavor.  As scary as that summary may appear, many investors – with a high tolerance for risk – have built substantial real estate portfolios buying on the court house steps.

Looking for More Info About Trustee Sales?

You may be interested in checking out our Trustee Sales Webinar. For our upcoming programs, you can visit our Class Schedule page or just head over to our Trustee Sales – Most Dangerous and Most Profitable Way to Buy San Mateo Real Estate information page which will be updated with our next class info.

Looking for Professional Representation for Your Trustee Sale?

We represent San Mateo home buyers in all types of real estate transactions, including Trustee’s Sales. To schedule a no obligation consultation, call us at (650) 655-2500 or email us at info@LivingWellinSanMateo.com.

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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.