Does 'foreclosure' occur at the time of the trustee sale? When does the title to the property actually transfer back to the bank? Thank you.

Asked by Ambertoes, Sedona, AZ Wed Apr 18, 2012

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Nora Sims’ answer
Nora Sims, Agent, Cottonwood, AZ
Tue Apr 24, 2012
Yes, title transfers at the completion of a trustee sale. A lot of confusion comes with your question. The foreclosure process is a process that is governed by state and federal laws, followed by the policies of the lender involved.What could be true and correct in one area, may not be so in another. In addition, the foreclosure process is different based on the type of loan that is in place; for instance a note and deed of trust vs. an agreement for sale, or a mortgage.
I hope that helps.
Bye for now,
0 votes
Stephanie We…, Agent, Gilbert, AZ
Thu Apr 19, 2012
At the time of Trustee Sale, the "trustee" deeds the property back to the "beneficiary" or lending entity if a sufficient bid has not been received. If a sufficient bid has been accepted, then it is deeded to that person or entity, but basically, at the date & time of trustee sale, that is when the property is deeded back to the bank.
0 votes
Barbara Baker, Agent, Sedona, AZ
Wed Apr 18, 2012
Dear Ambertoes:
On the date of the sale the property is transferred back - as all my colleques have pointed out. However the question remains why are you asking? If you have a delinquent mortgage I would suggest you contact an AZ real estate attorney - as the laws vary state to state. If you are calling to invest in foreclosures at the courtyard steps - my team and I have worked with many investors in this way. If you would like to talke to me in person about this - I can be reached via cell at 928-301-0669 or via the web at
Good luck,
Best regards,
Barbara Baker
Realty Executives of Sedona
0 votes
Bill Parker,…, , Scottsdale, AZ
Wed Apr 18, 2012
Hi Ambertoes:

Fannie Mae's guidelines state the waiting period "is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower."

I am working with a buddy of mine who had his home foreclosed upon a few years ago. He gave up the home in mid-2008. It was sold at a Trustee Sale on March 16, 2009. The Deed of Trust was recorded on March 18, 2009. This latest date is the date lenders will look at when determing if the proper time has passed before allowing us to take a new loan application to buy or refinance the borrower's home.

I hope this helps.
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Thomas Bohlm…, Agent, Rolesville, NC
Wed Apr 18, 2012
The "Trustee Sale" IS the final step of "foreclosure." Title will be transfered ASAP after the sale or your states redemption period if your state has one.

Good Luck
0 votes
Brad Bergami…, Agent, Prescott, AZ
Wed Apr 18, 2012
At the sale the new owner will be, person bidding, equity firm, or one of the lien holders, usually the first mortgage but sometimes the 2nd or 3rd if the value is high enough.
I know some great bidding company you can use if you need help buying at the courthouse steps.
If you are looking to sell.. (short-sale), or just some friendly advice.
Let me know,
0 votes
Jason Coleman, , Phoenix, AZ
Wed Apr 18, 2012
The trustee sale is when it is sold by the courts usually to a new buyer. The bank actually owns the title to begin with if there is a loan. If your wondering when you can start the count down to buy a new home it is from the sale date of the trustee sale.
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Tim Moore, Agent, Kitty Hawk, NC
Wed Apr 18, 2012
Basically you are correct. All states have some different laws with rights of redemption and upset bids which making answering the question complicated, but basically yes. The foreclosure process is ended with the auction where title is transferred to the high bidder which is often the bank.
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Very helpful. Thank you!
Flag Wed Apr 18, 2012
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