FAQ — Trustee Sales | Imperial Mortgage Corporation

Question 1

What is a trustee sale?

Accepted Answer

A trustee sale is a public auction of real property used to satisfy a defaulted loan secured by a Deed of Trust. When a borrower fails to make payments, the lender may initiate foreclosure proceedings under California Civil Code §2924. If the default is not cured, the property is sold at public auction to the highest bidder.

Question 2

What is the difference between a trustee sale and a court foreclosure?

Accepted Answer

California uses two foreclosure methods. A non-judicial foreclosure (trustee sale) proceeds under the power of sale in the Deed of Trust and does not require court involvement. A judicial foreclosure goes through the court system and may allow the borrower a redemption period after the sale. Most residential foreclosures in California are non-judicial.

Question 3

What is a Notice of Default?

Accepted Answer

A Notice of Default (NOD) is the formal document recorded with the county recorder's office to begin the foreclosure process. It notifies the borrower that they are in default and that foreclosure proceedings have been initiated. The borrower typically has 90 days from the recording of the NOD to cure the default before a Notice of Trustee's Sale can be issued.

Question 4

What is a Notice of Trustee's Sale?

Accepted Answer

A Notice of Trustee's Sale (NTS) is recorded and published at least 20 days before the scheduled sale date. It specifies the date, time, and location of the auction, the property address, the trustee's sale number, and the estimated unpaid balance. The NTS is also posted on the property and mailed to the borrower.

Question 5

Who can bid at a trustee sale?

Accepted Answer

Trustee sales are open to the general public. Any individual or entity may bid, with the exception of the trustee and certain parties prohibited by law. There is no pre-registration requirement, but bidders must be prepared to pay in full immediately upon winning.

Question 6

What form of payment is required?

Accepted Answer

Payment must be made in cash, cashier's check, or certified funds payable to the trustee. Personal checks and credit cards are not accepted. The full bid amount must be tendered at the time of sale. Bidders should bring sufficient funds to cover their maximum intended bid.

Question 7

What is the opening bid?

Accepted Answer

The opening bid is typically set by the beneficiary (lender) and generally represents the outstanding loan balance plus fees, costs, and accrued interest. The beneficiary may credit bid up to the full amount owed without tendering cash. Third-party bidders must outbid the beneficiary's opening bid with cash or certified funds.

Question 8

Where do trustee sales take place?

Accepted Answer

Most Los Angeles County trustee sales administered by our office are conducted on the West Lawn of the Los Angeles Superior Court, 111 N. Hill Street, Los Angeles, CA 90012. The specific location is stated in each Notice of Trustee's Sale. Always verify the location before attending, as it may change.

Question 9

Can a sale be postponed?

Accepted Answer

Yes. A trustee sale may be postponed for a variety of reasons, including a bankruptcy filing, a loan modification in progress, a court order, or at the request of the beneficiary. Postponements may be announced verbally at the sale site or by recorded telephone message. Always confirm the sale status before attending.

Question 10

How do I confirm whether a sale is still scheduled?

Accepted Answer

Sale dates and opening bids are subject to change at any time without further published notice. Contact our office by phone to verify the current status of any scheduled sale. You may also check the Trustee Sales page on this website, though we recommend calling to confirm on the day of the sale.

Question 11

What happens if a sale is cancelled?

Accepted Answer

If a sale is cancelled, it means the foreclosure process has been halted — typically because the borrower cured the default, the loan was reinstated, or the property was sold through other means. A cancelled sale does not necessarily mean the property is no longer in foreclosure; a new Notice of Default may be filed in the future.

Question 12

What does the winning bidder receive?

Accepted Answer

The successful bidder receives a Trustee's Deed Upon Sale, which conveys the property in its current condition. The deed is typically recorded within a few days of the sale. Title is conveyed without warranty — the trustee makes no representations regarding the condition of the property or the state of title.

Question 13

Are there liens or encumbrances on the property after the sale?

Accepted Answer

A trustee sale extinguishes junior liens (those recorded after the Deed of Trust being foreclosed), but senior liens — including property taxes, IRS liens, and deeds of trust recorded before the foreclosed loan — may survive the sale. Bidders are strongly advised to conduct a thorough title search before bidding.

Question 14

Is there a right of redemption after the sale?

Accepted Answer

In a non-judicial (trustee sale) foreclosure, there is generally no right of redemption after the sale is completed. Once the Trustee's Deed is recorded, the sale is final. This is one of the key distinctions between non-judicial and judicial foreclosure in California.

Question 15

What if the trustee cannot convey clear title?

Accepted Answer

If the trustee is unable to convey title for any reason, the successful bidder's sole remedy is the return of the funds paid. The bidder has no further recourse against the trustee or beneficiary. This limitation is stated in every Notice of Trustee's Sale and is a standard condition of all sales.

Frequently Asked Questions

Understanding Trustee Sales

Attending & Bidding

Postponements & Cancellations

After the Sale