Legal Question in Real Estate Law in Utah
Trustee sale of foreclosed property
What happens to the property at a trustee sale or auction if no bidders show up? I am interested in a property that is going to auction, but I don't have the kind of capital needed to participate in the auction. I have also researched that buying at auction is risky as you may wind up with a property that has other encumbrances, i.e. leins, etc. Is there another way to express interest in this property without becoming a bidder at the trustee sale?
1 Answer from Attorneys
Re: Trustee sale of foreclosed property
You need to know whether the sale is the first or a second (or third) trustee's sale. If the first, all other liens for less than the purchase price at auction are dissolved. If a second, then the first lienholder will most likely be present to bid the amount they are owed, and you would have to bid more. Generally the trustee requires the purchaser to post a cash deposit or bond, which is not refunable in event the buyer fails to perform. Generally the buyer has 10 days to close.
You can always approach the seller to purchase the lien directly. If so, you should obtain a preliminary title report on the property so you know what liens and claims are out there.
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