A trustee sale is a non-judicial foreclosure process wherein the property foreclosed will be sold in a public auction, with the bank’s intervention in order to reduce the damages suffered by the mortgage loan.
This occurs when a borrower becomes remiss in the payment of his or her loan even after the grace period of fifteen days. The lender then initiates foreclosure proceedings. However, there are lenders who would rather give you an extension or give you a chance to refinance your property. There are also those who will accept negotiation terms like repayment schemes rather than spend time and money of foreclosure proceedings.
Sometimes foreclosure is inevitable and one of the ways to remit back losses is by virtue of a trustee sale. When lenders stop talking to borrowers then expect a legal suit on your property. They will then file a notice of default payment with the registry of deeds where your property is located. This would then be mailed to you. Upon receipt of the said notice it is up to you whether you would wish to pay the outstanding balance of the loan to avoid a legal suit. This will allow you to reinstate your loan and get you back on track and be a borrower in good standing. However if you do not have this financial capacity, then a foreclosure process is in order.
When a property is foreclosed a public auction will be arranged for interested buyers or investors. This is when the lender exercises his right to force the sale of the property or dispose of it via a trustee sale. Through this sale the bank intervenes to answer for the losses already incurred by the bad debt on the property. A successful bidder will then pay the unpaid balance. The auctioneer has to give the buyer a receipt for the bid and the terms by which the title or deed will be handled. He or she will then be given sufficient time to raise the funds for the sale's complete transaction. This will usually take two weeks since some sales are cancelled when the owner suddenly avails of himself with an injunction order or other legal remedies under the law.
When you are trying to recover your property under a trustee sale make sure that you hire the services of a good real estate attorney. Pick one that is knowledgeable with the law and experienced with the court procedure. You can also make use of a lawyer who has various connections with insurance companies and other financing agencies that can help you with your foreclosed property. Get someone who can strike a good deal for you and not let you end up with more debts and legal problems.
Foreclosures can be really frustrating since it will take your property away from you. When this happens, it is important for you to be decisive and make the right choices. Get the legal expertise that you need and get assistance and recovering back your property. After all, you have to do what you have to do to save your home from being foreclosed.
Article source: http://www.appraisalarticles.com/Real-Estate/2947-Trustee-Sale.html