I do not recommend that anyone buy a house at a trustee sale.
At trustee's sales, there are no guarantees of good title, there are no refunds, and sales are cash on the spot only. There is no financing and there is no title insurance. Unless you really know what you are doing you can spends tens of thousands of dollars or more for something that has absolutely no value.
However I can share with you my experience, observing trustee's sales.
For example at one trustee sale that I attended as an observer, not as a bidder, there was a sale with a minimum bid of $20,000 in cash. This was lien against a condominium with a Fair Market Value of $350,000.
The winning buyer was a new inexperienced bidder who was thoroughly delighted, when his bid in the amount of $20,000 in cash was accepted by the person who was conducting the auction for the Trustee.
The prospective buyer thought that he had purchased the condominium for $20,000.
However the winning buyer did not know that the lien that he bought was in second position behind the first motgage in the amount of $380,000.
At a trustees sale, the sale is all cash. the sale is final and there are no guarantees of good title.
The holder of the first mortage then foreclosed on the property and took the property back at a subsequent trustee's sale.
The subsequent trustee's sale essentially eliminated the ownership interest of the person who had paid $20,000 in cash at the previous trustee's sale several months earlier.
Essentially the buyer of the second lien who paid $20,000 at the prior trustee's sale lost his $20,000.
That was an expensive lesson for that individual.
If you do not really know what you are doing and if you do not have a great deal of successful experience buying property at trustee's sales, I recommend that you do not buy properties at trustee's sales.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com