Trustee Sales

One of the biggest reasons for the huge amount of foreclosure today is, as I have mentioned previously, because of secure lending on the part of banks. Trustee sales would be extremely popular during the bubble run-up, and there were many consumers who were looking to get rich quick from properties that seems as though they would turn over quickly on the market. This allowed the lender to receive their remaining loan balance and the highest bidder went away happy, while the previous homeowners reentered the market as renters.

It is very uncommon to find trustee sales like this today, as the property is usually sold back to the bank.