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Notice of Trustee Sale

Also called Notice of sale, NTS

In short

A notice of trustee sale is the public notice, in a non-judicial foreclosure, that sets the date, time and place a trustee will auction a property to repay the defaulted loan.

Who issues it
The trustee under the deed of trust
How it's published
Recorded, posted and published
Key detail
Auction date, time and location
Lifecycle stage
Scheduled for auction

Where it fits in a foreclosure

Notice of Trustee Sale belongs to the auction stage.

  1. 1Missed paymentsThe owner falls behind; the servicer sends notices and may offer workout options.
  2. 2Pre-foreclosureA notice of default or lis pendens is filed. The owner can still sell, catch up or negotiate.
  3. 3AuctionThe property goes to a public sale, usually for cash, as-is and often without an inspection.You are here
  4. 4Bank-owned (REO)If no one outbids the lender, it takes the property back, clears most title issues and lists it.
  5. 5ResaleA buyer or investor purchases, repairs and occupies, rents or resells the home.

What the notice includes

A notice of trustee sale usually lists the property address and legal description, the borrower, the trustee, the date, time and location of the sale, and an estimate of the amount owed. Many notices also state the terms of sale, such as the form of payment the trustee will accept.

When it is issued

The notice comes after the notice of default and the state's required waiting period. State law sets how far in advance it must be recorded, mailed, posted on the property and published in a newspaper, and those requirements vary by state.

Postponements are common

Sale dates are frequently postponed, sometimes more than once, because the owner is negotiating with the lender, filed for bankruptcy, or the lender needs more time. Always confirm the sale is still on the morning of the foreclosure auction.

Example

Using a notice of sale to prepare for an auction

A notice of trustee sale shows a sale on June 12 at 10:00 a.m. at the county courthouse, with an estimated unpaid balance of $198,400. An investor has about three weeks to research the title, drive by the property, estimate repairs and arrange certified funds. On the day before the sale, the investor checks with the trustee and learns the sale has been postponed two weeks.

Notice of Trustee Sale vs. Notice of Default

Notice of Trustee Sale

A notice of trustee sale is the public notice, in a non-judicial foreclosure, that sets the date, time and place a trustee will auction a property to repay the defaulted loan.

Notice of Default

A notice of default (NOD) is a public notice, recorded with the county, stating that a borrower has fallen behind on a mortgage or deed of trust and that the lender may move toward foreclosure.

The differenceA notice of default announces that the loan is in default and starts the process. A notice of trustee sale comes later and sets the actual auction date.

Frequently Asked Questions

Related terms

TrusteeForeclosure processIn real estate, a trustee is the neutral third party named in a deed of trust who holds legal title for the lender and can sell the property at a trustee sale if the borrower defaults.Foreclosure AuctionForeclosure processA foreclosure auction is the public sale of a property after a borrower defaults, where the highest bidder buys it, usually with cash and as-is. If no one outbids the lender, it becomes bank-owned.Non-Judicial ForeclosureForeclosure processA non-judicial foreclosure is a foreclosure carried out without a lawsuit. A trustee sells the property at auction under the power-of-sale clause in the deed of trust or mortgage.Opening BidForeclosure processAn opening bid is the first bid at a foreclosure auction, usually placed by the lender. Other bidders must exceed it to buy the property; otherwise the lender takes it back.Deed of TrustTitle & legalA deed of trust is a security instrument used instead of a mortgage in many states. The borrower gives a neutral trustee legal title as security for the loan until it is paid off.Credit BidForeclosure processA credit bid is a bid at a foreclosure auction that the lender places using the debt it is owed instead of cash. The lender can bid up to the amount of its debt without paying any money.ReinstatementForeclosure processReinstatement is bringing a defaulted mortgage current by paying all past-due payments, late fees and foreclosure costs in one lump sum, which stops the foreclosure and restores the original loan.Pre-ForeclosureForeclosure processPre-foreclosure is the period after a lender files a default notice or foreclosure lawsuit but before the property is sold at auction. The owner still holds title and can sell or catch up.

Learn more in the knowledge base

How Foreclosure Auctions Work: A Guide for First-Time BiddersGuide · 8 min readA foreclosure auction is the public sale where a lender's collateral is sold to repay a defaulted loan. Rules on notice, payment, title and redemption are set by state law, and buyers usually pay cash for a home they have never been inside. This guide explains how the process works so you know what you are bidding on.Researching a Foreclosure Property Before the AuctionGuide · 6 min readAt a foreclosure auction you usually buy as-is, unseen and without contingencies, so research done before the sale is your only protection. This guide covers how to confirm the sale details, check title and liens, estimate value and repairs from the outside and turn it all into a maximum bid.How to Build a Foreclosure Auction Target ListGuide · 7 min readMost properties scheduled for a foreclosure auction are not worth bidding on, and many never reach the sale. A target list helps you find the scheduled sales in your area, screen them quickly for equity, price, location and condition, and keep track of postponements so your research time goes to the few properties that fit.
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Disclaimer: The information on this page is for general educational purposes only and is not legal, financial, tax or investment advice. Laws, lending rules and market conditions vary by state and change over time, and any figures shown are estimates. Before you buy, sell, finance or bid on a property, consult a qualified attorney, financial advisor, lender or licensed real estate professional about your situation.