First, we need to know what foreclosure is as it relates to the trustee sale. At any time, the homeowner forfeits his/her payment for whatever reason; the lender reserves the right to take back ownership of the property. A trustee’s sale is an option that a lender has if a homeowner defaults in payment. Foreclosure is the second option the lender has. The two terms differ slightly.
Therefore, foreclosure is the process by which the lender takes possession of the property when the homeowner fails to make payments on the mortgage; this is a very distinct legal process with a set of timelines and outcomes. A notice of trustee’s sale informs the homeowner of record that their home will be sold at a trustee’s sale on a specific location. Therefore, a trustee sale is a sale by a property in foreclosure due to default in the loan made from the lender.
When a property goes into foreclosure, it is entrusted to a “trustee” to try and resell the property in an attempt to recoup any losses. The trustee can sell the foreclosed property at a public auction. When a trustee sells a foreclosed property at auction, it is known as a trustee sale. One of the ways the public is notified of the sale date and time is via the local newspaper.
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