Las Vegas Area Sellers and Sales (Transaction) Categories: Trustee's Sales (#6 in a series)

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Services for Real Estate Pros with Savvy Home Pix B.1000860.LLC

Las Vegas Area Seller or Transaction Category (#6 in a series):  The Trustee's Sale

A Trustee's Sale is a type of Sale.

A Trustee's Sale is technically the "foreclosure sale".  This is the final action in a foreclosure where the home goes "back to the bank."

OR DOES IT?

Not necessarily as the public has a crack at the "auction" type of atmosphere.  Many investors are pickingLas Vegas Area Real Estate up some fantastic bargains during these trustee's sales.  These sales are all cash sales.  Investors have been "flipping" these homes, using them as rentals or even using them for their own personal residences.

What happens before the Trustee's Sale?

  • The homeowner goes in default (quits making their payment)
  • The homeowner is sent a "notice of default" (NOD) typically around 3-4 months after they stopped making their payments
  • A "sale date" is set.  This is what is known as the "Trustee's Sale".  The sale date is typically set 2-4 months after the NOD is sent out.  This sometimes gets postponed if the homeowner is making a valiant effort to keep their home.

How do I find out about Trustee's Sales?

What is involved?

  • DUE DILIGENCE prior to the sale - lots of due diligence.
  • Bring your money!  The trustee will define (in their legal notice) what they need in the sale.  Generally this is cash, cashier's checkds drawn by a state or federal credit union, savings and loan association, savings association or savings bank specified in Section 5102 of the Financial Code and authorized to do business in Nevada.

What Is Some of the Due Diligence  Involved?

  • An appraisal, BPO or some sort of comparative market analysis to get some sort of an idea of pricing so you don't pay too much at the sale.  You can also search solds on my MLS/IDX website with no registration if you know what you are doing!
  • A comprensive title search as the liens more than likely convey with the property.  You will need a good and solid connection with a title company.
  • An occupancy check.  To see if the property is occupied.  Once it is determined that it is occupied you will need to find out if it is occupied by a tenant!
  • Approaching the owner to see if the occupant will let you in to take a peek at the property condition.  This will help you determine property condition.  Many times property condition will not matter to the seasoned investor if the numbers make sense for rehab.

The Pitfalls of purchasing a Trustee's Sale:

  • Many times you are buying a property sight unseen.  This could cause problems if the property is trashed so bad or has incurable health hazards (such as mold) that it needs to be "gutted".
  • Liens liens liens to satisfy.  Will the starting bid offset those costs?
  • Is it occupied?  If it is occupied then you will be dealing with an eviction.
  • Is this tenant occupied?  There are new laws protecting tenants in foreclosure & evictions..Make sure you know those laws so you are not in violation of the law if you seek eviction!  This could hinder you from rehabbing or using your property for some time after the sale!

THIS TYPE OF SALE IS NOT RECOMMENDED FOR A NOVICE INVESTOR.  Novice investors who seek these types of transactions shall hire an attorney with experience in this type of Law and do LOTS AND LOTS AND LOTS of research and not pass go and collect their $200 until they fully understand the Trustee's sale.

To read about more Las Vegas Area Sellers and Sales Transaction Categories Click Here!

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Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

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Comments (6)

Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Renee,

Good post, are you seeing a lot of properties sell at auction?  There's more often than not an empty lobby at the title company here during auctions.  I think sometimes the lenders are unrealistic about the value of the property so you're better off to wait until it becomes and REO and let them get a dose of reality before putting in an offer.

Aug 23, 2009 07:09 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Brian:  Yes, there are some that are priced low enough for the numbers to make sense to these very experienced investors!  Most still go to REO however.  We are seeing the "FLIPS" enter the market!

Aug 23, 2009 08:01 AM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Renee, thanks for visiting my blog.  I have been impressed with the quality and the content of your blog.  I hope that the consumers in your area appreciate the information that you place in your blog.  It takes many hours of thought and dedication to research, plan and compile a blog such as this. You are representative of the quality of Real Estate Agent this profession should be aspiring to.  Thanks again.

Aug 23, 2009 09:52 AM
Sharon Senger
tcDocs - Seattle, WA
Licensed Transaction Coordinator

Renee,

Another great post and full of important information for buyers to consider before purchasing a property at auction.

Sharon

Aug 23, 2009 02:32 PM
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

Renee:

Great work.

Richard

Aug 23, 2009 03:02 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Damon:  Thanks for returning and telling me that!  I am humbled!

Sharon:  Thanks!

Richard:  Thanks!

Aug 24, 2009 08:22 AM

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