Is it possible to bid a trustee sale real property by a loan/mortgage?
I'd like to invest in the auctions for the real properties of the trustee sales or foreclosure sales. I heard that there is only CASH could be accepted in the auctions. Is it true?
Attorney answers (3)
Steven Alan Fink
Reputation Level 20
Answered over 2 years ago.
Real Estate Attorney in Newport Beach, CA.
Usually they will take a cashier's check or a certified check. Call the auctioneer in advance to confirm.
The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.
John Donald Sullivan
Reputation Level 11
Answered over 2 years ago.
Real Estate Attorney in Seattle, WA.
By law payment MUST be made with cash, certified/cashier's check, money order, or wire transfer.
RCW 61.24.070 says: "the entire bid shall be paid to the trustee in the form of cash, certified check, cashier's check, money order, or funds received by verified electronic transfer, or any combination thereof."
PLEASE BE ADVISED: This answer and any information contained herein is not intended to be treated, and should not be construed, as legal advice. Rather, this answer is offered solely for general information purposes. This answer does not create an attorney-client relationship, nor does it create any kind of legal relationship, duty, or privilege. This attorney is licensed only in Washington.
Brian J Danzig
Reputation Level 6
Answered over 2 years ago.
Real Estate Attorney in Seattle, WA.
Your question is unclear, but it appears you may be interested in buying notes for loans that are in foreclosure and then competing the foreclosure sale. Otherwise, it is difficult to understand what you mean when you say "is it possible to bid. . .by a loan/mortgage".
If you buy a loan that is in foreclosure, you will buy the note and the collateral security interest represented by the deed of trust. When the purchase of the note and deed of trust is complete, you will be the beneficiary under the deed of trust. RCW 61.24.070 allows the beneficiary under a deed of trust to use the amount of the monetary obligations secured by the deed of as a credit against that beneficiary's foreclosure sale bid. If the beneficiary ultimately bids more than the secured debt, the balance of the payment (in excess of the debt) must be in cash. This is what the statute says:
"(2) The trustee shall, at the request of the beneficiary, credit toward the beneficiary's bid all or any part of the monetary obligations secured by the deed of trust. If the beneficiary is the purchaser, any amount bid by the beneficiary in excess of the amount so credited shall be paid to the trustee in the form of cash, certified check, cashier's check, money order, or funds received by verified electronic transfer, or any combination thereof."
As pointed out by others, if the purchaser is not the beneficiary, the entire bid must be paid in the form of cash, certified check, cashier's check, money order, or funds received by verified electronic transfer, or any combination thereof.
Best of luck.
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