A deed of trust is a contract that, once properly recorded, creates a lien on real property securing repayment, usually of a promissory note. A trustee’s sale refers to the trustee under the deed of trust exercising the power of sale.
Who’s Selling? The trustee often is an attorney acting on behalf of the lender to mitigate losses by foreclosing on the property.
Who’s Buying? The property may be sold to a third party bidder or even back to the lender.
State laws vary as to the time period in which a trustee’s sale must be held. In Arizona, the sale can take place no sooner than 90 days after the Notice of Trustee Sale is recorded. Also specified by state law are the acceptable methods of notifying the public of the sale date and time, as well as strict requirements for notifying the property’s tenants. Newspapers are the primary means of publicizing the sale, and listing services can make sale information available to prospective buyers.
Arizona state law mandates that trustee’s sales take place at the county courthouse – literally, on the courthouse steps, at the property itself, or at the trustee’s office. Before the sale takes place, the lender will assign an opening bid. Trustee’s sales, because of the quick turnaround of the transaction, are cash sales only. Once the trustee sale is conducted, the person who purchases the property at auction will receive a trustee deed making them the new owner of the property.
The attorneys at Windtberg & Zdancewicz have acted as trustees under deeds of trust and represented both buyers and lenders. If you would like more information about trustee’s sales, creditors’ rights, or if you need assistance from an attorney, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.