When a bank or FNMA or any other lender, forecloses on a property and auctions it at the courthouse, the succesful bidder receives a trustee's deed for the property. This deed conveys full ownership of the bundle of rights but comes with no guarantees that the title is clean. The property may be in default on taxes or mechanic's liens or other encumbrances, so you take a risk with a trustees deed and it is not as good as a warranty deed which as the name implies is warranted against encumbrances.

In California it is the deed recorded by the current Trustee (of the foreclosing deed of trust) after conducting a non-judicial Trustee Sale. This deed is transfers ownership into the name of the lender or beneficiary who is foreclosing, if there were no successful bidders at the sale, or in the name of a third-party who was the successful bidder at a Trustee Sale.

In the state of California homes are generally owned with a trustee deed. So we record trustee deeds in the name of the owner and usually there is a trustor who holds the lien on the property for the amount of the mortgage note. If a home is foreclosed upon, the deed and the ownership of the house goes back to the lender. A foreclosed home is usually referred to as a repo and these are being sold to a new buyer who will in turn get the trustee deed recorded at the county office in their name after their payment is made to the title company. Sometimes these buyers pay cash and othertimes there are notes or liens involoved. I can only spectulate so far without knowing more of the context of your question. Send me an email if I missed what you needed... Donna L Meyers Connect Realty

It is like a POA , power of attorney, in a sense giving temporary ownership to the trustee so they can convey the property without complications

http://definitions.uslegal.com/t/trustees-deed/

At the end of the day it is a deed given to a trustee but not so that they own the house but rather so that they may, acting as the trustee, conduct the task (usually selling) appointed them.

I hope that helps