Trustee Sale Law and Legal Definition

A trustee sale is a sale by a property in foreclosure due to default in the loan made from the lender, who holds a trustee deed on the property. State statutes, which vary by state, govern the notice requirements for publication of the sale of the foreclosed property. A foreclosure sale can take place at public auction. The property may be sold to a third party bidder or revert back to the lender for a specified amount.