If you are behind in house payments or property taxes, you may have seen notices of an impending trustee sale. This can be cause for panic and confusion, but if you know in advance what you are up against you can make arrangements that will put you in a better position financially and may improve outcomes on your credit score.
What is a trustee sale?
A trustee sale is a public auction of a home or property. It happens when the property owner is more than 60 days defaulted on the mortgage payment or has not paid property taxes for the amount of time specified by the state. It is called a trustee sale because the lender becomes the trustee for the property when the original owner has defaulted.
How does a trustee sale work?
On the day of the auction, interested buyers can come and bid on the property. The trustee may stipulate that the sale can only go through if the bids go over a certain price, to ensure that he or she receives a fair price for the property. Buyers are usually required to pay for the property in cash at the time of purchase. Once they have bought the property at auction, they usually receive ownership (and therefore physical control) of the property immediately. If your house is put up for a trustee sale, you need to be out of it by the time someone else buys it.
How do I know if my house is going to be put up for a trustee sale?
You won’t be caught off guard by a trustee sale. You will be given several notices ahead of time telling you that your house is going to be put up for sale. These notices give you an opportunity to bring your account current, or to talk to your bank about a payment plan that will allow you to keep your house. If you cannot make a payment, the house will be put up for auction.
What happens if my house goes up for a trustee sale?
First and most obviously, you won’t have your house anymore. You will have to move out. Financially, your credit will take a huge hit, just like with any foreclosure or default. It may be several years before you can get credit to make new purchases.
How can I avoid a trustee sale?
If you cannot make a payment on your house and you do not want your credit to show that you defaulted on a loan, you can sell the house. With only 60 days until the trustee sale, it might be impossible to sell conventionally, but we can help you here at 800-BUY-KWIK. We will buy your house quickly, cash in hand, so you can get out of your mortgage without having to take a massive hit on your credit. Give us a call today at 800-BUY-KWIK and let us get you out of your sticky situation!