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Nevada is a non-judicial foreclosure state which means the right to foreclose and sell a property actually
lies with a 3rd party known as the Trustee; who has a fiduciary responsibility to both the lender and the
borrower. When a property is purchased traditionally, ownership is transferred to the buyer using a
document known as a deed. When you take a loan to purchase the home a deed of trust is signed which
gives the third party trustee the right to sell the home if the buyer fails to make payments. The Trustee
Sale is where these properties are sold through an auction style process.
The Las Vegas trustee sale runs Monday through Friday at Nevada Legal News. 400-500 properties go to
sale on a daily basis and will fall under the following categories throughout the day:
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Postponed-This is a common action the first and second time a property enters the Trustee Sale.
Common reasons for postponement include:
- Mutual Agreement- the borrower and the lender agree to delay the sale normally due to a short sale or loan re-modification being in progress.
- Beneficiaries Request- the lender decides to postpone
- Trustee Discretion- the Trustee decides to postpone, often because it can’t reach the lender for bidding instructions
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Bankruptcy- this doesn’t actually stop a foreclosure but it does put a temporary stay
on
the sale until the lender can get a motion granted by the judge allowing them to
continue the sale
o Operation of Law- a court has ordered that the sale not be held
- Sold to the Beneficiary (Bank)- Since the Trustee sells the home and not the Bank the lender is
entitled to place the first bid on the home. This bid can up to the amount owed on the home.
Opening Bids are often too high for value and therefore sold back to the bank.
- Cancelled- This occurs when a property has sold before the auction due to a successful short
sale, a loan re-modification, or the current owner bringing the loan current.
- Sold to a 3rd Party-When a property has an opening bid below market value it
will normally be purchased by a bidder on the auction floor such as United
Auction Co.
It’s important to note that only 5% of the properties at the Trustee Sale are sold to a 3rd Party. This is
why it’s essential for an investor to utilize the services of an experienced bidder to ensure they get the
property. |
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