Phoenix, AZ · Member since 2016 · 5 posts · 1 vote
I been trying to buy house at pre-foreclosure and I been using the county recorders office to get information. Now I saw a house that was set for auction on a certain date, the day came and went. The house still going to be auctioned out at a different day months after the original auction date, but I also noticed that there is a substitution of trustee paperwork that has been recorded. Does this means the original homeowners are not longer in charge of the house? Am I wasting my time by trying to track down the homeowners and making them an offer? I'm sure the role of the new trustee or whose interest he holds but I'm pretty sure is the bank's. I always believe that the homeowners had until the day the house actually gets auctioned out to do something about it like selling the property. Any information is highly appreciated.
SW Florida/Maryland · Member since 2016 · 89 posts · 36 votes
9y
I don't know Arizona law specifically but most likely you do not now have to buy from the trustees. Typically the borrower still can sell the house up until the Trustees sale.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
As far as I know the "substitute trustee" where you have "trustee auctions" is just a substitute representing the bank.....they don't own/control the actual property until after/if they get it back at the auction. In every state, the home owner can sell it prior to the actual auction.
Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
9y
@Ivan Sosa Both parties have rights in Arizona normally.
Until the Trustee sale actually takes place the owners of record would typically have a right to pay off the loan, fees and sell the property.
The Trustee is exercising a right granted to sell the property generally granted via the Deed of Trust in Arizona. Trustees do change on occasion and shouldn't be much of an alarm, the change may actually delay the trustee sale.
Of course an attorney might be able to provide more details!