Kelly, 4 things to keep in mind while you’re observing a trustees sale. (I took my brown bag lunch to the courthouse steps throughout the ’80’s decade and even got to know some of the trustees [who worked off a clipboard at that time – LOL].) The law has not changed in this area.
1. The trustee usually requires bidders to bring a cashier’s check for a certain percentage of the opening bid of the property they will bid on and will ask to see the check prior to commencement of the auction.
2. A bidder is a FOOL if they are there on the steps with their check without an UP TO THE MINUTE preliminary title report IN HAND for the propertie(s) they wish to bid on that day (NOT a “property profile”). And YES, there were plenty of fools to go around.
3. Most importantly, remember that the trustee’s ONLY FUNCTION is to sell delinquent TRUST DEEDS for their client lenders, NOT NECESSARILY PROPERTIES. The trust deeds they are attempting to sell may or may not have any value.
4. The VAST MAJORITY of delinquent trust deeds have no bidders and thus revert back to the foreclosing lender. The lender (beneficiary) is not required to attend or send a representative to the sale.
Note: I have never seen a trustor actually redeem his/her trust deed at the sale. If they are able to do this at the 11th hour, they do it prior to the sale, even minutes prior.
