A notice of trustee sale is a legal notification of a pending foreclosure auction. The notice will include the time, date, and location of the auction.
Should the borrower not come current with the mortgage after defaulting for a significant period, a trustee sale will occur. A trustee sale is a sale by the trustee to recoup lost income resulting from the borrower’s default on mortgage payments.
A notice of trustee sale is the legal term that describes a property that is going to be sold unless the borrower catches up on payments.
Significant of Notice of Trustee Sale
A notice of trustee sale acts as evidence to the public that a lender is ready to impose their legal right to recoup a defaulting debtor’s property. The process of initiating a foreclosure to the close typically takes 4-6 months. Lenders will initiate foreclosure proceedings after a borrower has fallen two to three months or more behind. Following the initial default, the lender will send a defaulted property owner a notice of default, which is the lenders request that the borrower come current. If the borrower cannot come current, or come to a modification of the loans terms, the lender will send a notice of trustee sale. This notice informs the borrower and the public that the subject property will be foreclosed up