A trustee is appointed by a court to hold property for the benefit of a beneficiary, often following foreclosure or bankruptcy proceedings. A Trust Sale Notice is required when the trustee intends to sell the property at auction, with specific requirements varying by jurisdiction. In foreclosure and bankruptcy sales, the highest bidder becomes the owner of the property, with proceeds used to pay off debts. In probate proceedings, a trustee may be appointed to sell estate property to pay off creditors or distribute assets fairly.
A trustee is someone legally appointed by a court to hold property for the benefit of a beneficiary. In many cases, the trustee holds the property on behalf of a bank or lender following foreclosure proceedings. A trustee may also hold property for sale following bankruptcy proceedings or for sale through probate proceedings. A trust sale notice is the legal notice required when a trustee intends to sell the property at auction. The requirements for when and how the Trust Sale Notice is posted will vary depending on the jurisdiction and the reason for the sale.
When a property is the subject of foreclosure proceedings, the court will eventually order that the property be turned over to a trustee for sale. The property is then auctioned off and the proceeds are used to pay off the debt to the creditor. In most jurisdictions, the rules for selling a foreclosed property are very detailed. Typically, a Trust Sale Notice must be published in a local newspaper at least 30 days before the sale. The trust sale notice must also be posted more than once, usually three times, before the sale can proceed.
In a foreclosure sale, the escrow sale notice must usually include the legal description of the property, the reason for the sale, and the date and time of the sale. Interested bidders may view the property, but generally do not have the opportunity to fully inspect the property prior to the sale. Upon sale, the highest bidder becomes the owner of the property. Often, the lender repurchases the property upon the trustee’s sale.
An escrow sale that is part of a bankruptcy proceeding works in much the same way as a foreclosure sale. The bankruptcy court trustee must post a trust sale notice providing information about the property and the time and place of the sale. The proceeds of the sale will be used by the bankruptcy trustee to pay the debtor’s creditors.
When a person dies, a probate estate must be opened to inventory the deceased’s estate, pay off creditors, and distribute the remaining estate to the beneficiaries. In many cases, a trustee is appointed to sell the estate property in order to pay off creditors or to distribute the assets fairly. As in the other examples, an escrow sale notice must be posted informing prospective buyers of the sale.
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