As I have posted earlier, we stopped our trustee sale purchases several months ago due to slim margins. Everyone and his brother are doing it. We still keep an eye on stuff but it is improbable we will continue. It was a strategic play and it worked out well.
I was talking to a large investment group manager yesterday who has two funds, one for trust deed sales and one for long term rental investments. He was telling me that they are advising all of their clients who purchase at trustee sales and flip to now purchase title insurance due to increased litigation. He reeled off a few stories to me about investors getting stuck while properties go through the process. Nightmare. It is certainly not the norm but increased caution is prudent. Also if you are planning on purchasing for other reasons then to flip I think they are still a decent play.
