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    ZaxDad's Avatar
    ZaxDad Posts: 2, Reputation: 1
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    #1

    Jan 12, 2007, 02:12 PM
    What is a trustee sale?
    Can someone please clarify to me what a trustee sale is and how that will effect my lease as a tenant?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Jan 12, 2007, 02:16 PM
    It would help is you gave is the context. But it sounds like the property you are leasing (or leasing part of) may have been involved in a bankruptcy and is being sold by the trustee charged with disposing of assets. In that case the buyer would have to honor the lease.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #3

    Jan 12, 2007, 05:43 PM
    If a property is foreclosed by the lender, the lender will normally put it up for sale, the person who handles this foreclosure and sale is normally referred to as the trustee,

    Also in bankruptcy, when property is sold it is also sold by someone referred to as a trustee.

    You have to be very careful when buying property through a trustee sale, most I see locally do not carry any warranty at all and in the notice of sale even say that the sale does not clear any other claims.

    If you do a good title search you can be safer but they have risks at these sales.
    giJ's Avatar
    giJ Posts: 21, Reputation: 2
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    #4

    Jan 12, 2007, 07:03 PM
    Quote Originally Posted by ZaxDad
    Can someone please clarify to me what a trustee sale is and how that will effect my lease as a tenant?
    In Virginia, foreclosure auctions are called Trustee's Sales.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #5

    Jan 13, 2007, 07:12 AM
    See, As I said context is very important. If this is a foreclosure sale (I wasn't aware that these were also referred to as trustee sales) then you may be out of luck. In a foreclosure, the buyer does NOT have to honor any current leases and you could be forced to move on short notice.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #6

    Jan 13, 2007, 07:45 AM
    Yes I am sorry, I forgot to addess the last 2nd question,

    But if the property is being sold as a trustee sale, in all cases I can think of ( but there may be types of sales in some states different)
    Once the property is forclosed either by the lender or by the bankruptcy court, the lease is no longer valid, the lease would have ended when either the court or the trustee took legal control of the property.

    After that point, you are on a month to month rental basis. The trustee will not owe you the deposit, that is the original owner.

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