Trustee Sale

A trustee sale is a public auction where a property is sold to recover money owed on a defaulted loan. When a homeowner fails to make mortgage payments, the lender can initiate a foreclosure process. A trustee, often a third party, manages this process, which culminates in the auction of the property. The highest bidder at the trustee sale buys the property, usually for less than market value, while the proceeds go towards paying off the outstanding mortgage debt. This process is commonly used in states that allow non-judicial foreclosure.