Understanding a Trustee’s Deed Upon Sale

Title industry figures reveal that over the last decade forgery losses tripled, accounting now for over 20% of the losses paid by title insurers.

A Trustee’s Deed Upon Sale, also known as a Trustee’s Deed Under Sale or a Trustee’s Deed is a deed of foreclosure.  This deed is prepared after a property’s foreclosure sale and recorded in the county were the property is located.  The Trustee’s Deed transfers the property to the buyer who purchased the foreclosed property at auction.

California foreclosure law states that on the day that has been established for the sale of the property, and only after all publication period requirements have been met (NOD & NOT time periods), the property is sold to the highest bidder for cash for the full amount of the debt plus foreclosure fees and expenses. If no one bids at the Trustee’s Sale, the property automatically reverts back to the beneficiary (the bank) for the debt.

Special Note: The successful bidder of a Trustee Sale receives a Trustee’s Deed Upon Sale, which conveys full ownership of the bundle of rights but comes with no guarantee’s that the title is clean.  The property may be in default on taxes, have mechanic’s liens and/or other encumbrances.  Trustee’s deeds come with many risks and title insurance cannot be purchased to cover them.

Southland Home Sales Down from Last Year Again; Price Gains Throttle Back

As seen on DQNEWS.com

Southern California homes sold at the slowest pace for a June in three years as investor purchases fell again and other would-be buyers continued to struggle with inventory and affordability constraints. The median price paid for a home rose to its highest level in 77 months but the single-digit gain from a year earlier was the smallest in two years, a real estate information service reported.

A total of 20,654 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 5.6 percent from 19,556 sales in May, and down 4.4 percent from 21,608 sales in June last year, according to DataQuick, which is owned by Irvine-based CoreLogic, a leading global property information, analytics and data-enabled services provider.

On average, sales have increased 6.4 percent between May and June since 1988, when DataQuick’s statistics begin. Sales have fallen on a year-over-year basis for nine consecutive months. Sales during the month of June have ranged from a low of 18,032 in June 2008 to a high of 40,156 in June 2005. Last month was 23.7 percent below the June average of 27,069 sales. Sales haven’t been above the long-term average for more than eight years.

“Pent-up demand, job growth and still-low mortgage rates continue to put pressure on home prices. But they’re climbing at a much slower pace than a year ago. In many markets price appreciation has slipped into the more sustainable single-digit range, compared with gains exceeding 20 percent this time last year. Why the drop-off? The supply of homes for sale, while still low in an historical context, is higher this year, and the decline in affordability serves as gravity for home prices. People can’t stretch with exotic and risky loans the way they could during the last housing boom,” said Andrew LePage, a DataQuick analyst.

“Many of the market indicators we track continue to ease toward normalcy,” he added. “For example, the use of larger, so-called jumbo loans is up significantly this year, as is the use of adjustable-rate mortgages. Distressed property sales are way down and, related to that, investor and cash purchases are trending lower, toward more normal levels.”

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Wishing you a Happy and Safe 4th of July!

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On behalf of all your title partners at Western Resources Title, we wish you and your loved ones a safe and enjoyable 4th of July Holiday.

At WRT we believe that service should be hands-on and local.  We have come to be known as the most expedient resource in the title industry, but did you know that ALL of our work is done locally?  From the searching and abstracting of a preliminary title report to the issuance of a title policy, all of this work is done in your back yard and not some distant land or time zone.

Thank you for supporting WRT, an 100% American Made company and product!

Please be advised that our office as well as all county recorders offices will be closed on Friday, July 4, 2014.