- Who sends it
- The trustee, sheriff or court officer, recorded in the county land records
- What it starts
- The buyer's ownership, and often short deadlines to challenge the sale or claim surplus
- Do this first
- Check the recording date and whether your state gives a redemption period, then call legal aid
What this document is
After a foreclosure auction, the person who ran the sale signs a deed to the winning bidder, which is often the lender. In a sale without a court, it is usually called a trustee's deed or trustee's deed upon sale (a substitute trustee's deed in Mississippi, a foreclosure deed in Alabama and New Hampshire). In a court foreclosure it is usually a sheriff's deed, or a master's, referee's or committee deed.
The deed is recorded in the county land records. You may get a copy, see it posted on the home, or only learn about it when the new owner contacts you.
What it does and does not mean
- It usually ends your ownership and your right to reinstate or pay off the loan.
- It is not an eviction order. In most states the new owner still needs written notice and a court order to remove you. See notice to vacate and writ of possession.
- It may start short deadlines. In Nevada, recording the deed starts 30 days to challenge the sale in court (90 days after the sale if you did not get proper notice).
- Some sales can still be undone in a short window: Texas allows rescission within 15 days for listed reasons, Washington up to the 11th day, Oregon within 10 days, and an Alaska trustee may hold the deed up to 10 days. This is the lender's or trustee's choice, so call them and a lawyer at once if you had cured, had a written deal, or had filed bankruptcy.
- There may be money left over (surplus). Each state's after the sale page explains how to claim it.
States where the deed comes later, after a redemption period
In these states you can buy the home back after the sale. The buyer first gets a certificate, and the deed comes only if you do not redeem:
- Michigan: the sheriff's deed and the buyer's affidavit, recorded right after the sale, show the date your redemption period ends and the exact amount. It is 6 months for most homes. You can stay, and redeeming cancels the sheriff's deed.
- Minnesota: the sheriff's certificate of sale, recorded within 20 days, lists the price, interest rate and time to redeem. The usual period is 6 months, and 12 months in listed cases.
- Wyoming: a certificate of purchase, then 3 months to redeem while you stay. The sheriff's deed comes only after all redemption periods end.
- Kansas: usually 12 months (3 months in some cases), and you are entitled to stay. The Attorney General warns that some buyers falsely tell owners they must leave right after the auction.
- North Dakota: 60 days after the sale. South Dakota: 1 year, or 180 days for some mortgages, and the buyer cannot take possession until it ends.
- Iowa: 1 year or less if the lender chose foreclosure with redemption, and none if it chose foreclosure without redemption.
- Alabama: 180 days for a homestead (1 year for other property). The clock for a homestead does not start until the lender mails the required redemption notice, but never runs past 1 year. You lose the right if you do not move out within 10 days of a written demand.
- Tennessee: 2 years, but only if your deed of trust does not waive it, and most do. Missouri: up to 1 year, only if the lender bought the home and you gave written notice of intent to redeem and file a bond within 20 days.
- Colorado: homeowners have no redemption right. The buyer gets a certificate of purchase on sale day, title passes 8 business days later if no other lienholder files to redeem, and the public trustee then records a confirmation deed.
The notice of redemption rights
If your state gives a redemption period, look for the paper that tells you the end date and amount. In Alabama it is the redemption notice the lender must mail for a homestead. In Michigan it is the recorded sheriff's deed and affidavit. In Minnesota, North Dakota and South Dakota it is the certificate of sale. In Alabama you can also send the buyer a written demand for an itemized statement, and the buyer has 10 days to answer.
To redeem, you usually pay the sale price (not your old loan balance) plus interest and certain costs the buyer paid, such as taxes and insurance. Get the exact amount in writing and pay the person your state names, such as the buyer, the sheriff or the court clerk.
What to do this week
- Find the recording date and the name of the new owner. Look it up in the county land records if you did not get a copy.
- Read your state's after the sale page for your redemption rights, how long you can stay, and any deficiency or surplus rules.
- If you can redeem, write down the last day and ask for the redemption amount in writing.
- Call legal aid right away if you think the sale was not done correctly. Deadlines to challenge a sale can be very short. See lawyers by city.
- Plan your move, and keep any court papers you get. Read notice to vacate.
Scams tied to a deed
- Anyone who says they can cancel the deed or undo the sale for a fee paid up front.
- Anyone who offers to buy your redemption right or surplus for a small payment. Kansas law lets you sell your redemption right, and the Kansas Attorney General warns that scam artists buy these rights for little or nothing.
- Companies offering to recover surplus funds for a large percentage before you have checked how to claim them yourself for free.
What it is called in your state
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
Does a trustee's deed mean I have to leave today?
No. In most states the new owner must give written notice and win a court case before an officer can remove you. In some states, such as Idaho, Montana and Oregon, the buyer is entitled to possession on the 10th day after the sale, but still must go to court if you stay.
What is the difference between a certificate of sale and a sheriff's deed?
In redemption states, the buyer first gets a certificate of sale or purchase. It shows the price and the redemption deadline. The sheriff's deed comes only if no one redeems in time, and that is when the buyer's ownership becomes final.
Can I get money from the sale?
If the home sold for more than the debt and costs, there may be surplus. Your state's after the sale page explains who holds it and how to claim it, often for free.
Keep reading
- Late notice and early intervention letterThis letter is a warning, not a foreclosure. Federal rules make your servicer reach out early and tell you about help. In most cases a foreclosure cannot start until you are more than 120 days behind, so this is the best time to act.
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.