What is a trust sale?

A trust sale, also known as a trustee sale or trust deed sale, is a real estate transaction in which a property is sold by a trustee on behalf of a trust. This type of sale typically occurs when a property owner is unable to fulfill their mortgage obligations and the property is foreclosed upon by the lender. The trustee is appointed to oversee the sale and ensure that the sale proceeds are distributed according to the terms of the trust.

Trust sales are typically held as public auctions, where interested buyers can bid on the property. The highest bidder will typically be required to provide a deposit at the time of the sale and complete the purchase within a specified timeframe. Trust sales often offer potential buyers the opportunity to purchase a property at a discounted price, as the lender is motivated to sell the property quickly to recoup their investment.

It is important for buyers to conduct thorough research and due diligence before participating in a trust sale, as these transactions can be complex and may involve additional risks. Buyers should also be aware of any liens or encumbrances on the property, as these may not be extinguished through the sale process. Overall, trust sales can offer a unique opportunity for buyers to acquire a property at a competitive price, but it is important to proceed with caution and seek professional advice if needed.