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What is a trustee sale? In real estate, a trustee sale means the sale of real property through public auction. A trustee sale usually occurs when the homeowner is in default on their mortgage, resulting in a foreclosure. However, it's possible for your home to be put up for trustee sale if you owe a significant amount of back property taxes. Notably, this is a "trustee sale" rather than a "trust sale," where the court is involved because an estate is going through probate.
In most respects, a trustee sale is similar to any other type of public auction. On the sale date, qualified investors will gather, the trustor will start with the opening bid, and the price goes up from there. Once the bidding has been completed and necessary funds have been exchanged, the successful bidder will be given a trustee's deed, which will name them as the new owner of the property.
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