In NC and SC this is considered a material fact that could impact a seller's ability to transfer title. Of course, it has to be disclosed. Besides, it will get noted in the tax records so it becomes public information in any event.

It depends.  If it's under contract and scheduled to close escrow prior to the Trustee Sale, and it's not a short sale, then it's likely irrelevant.  However, if you have to ask whether to disclose, it's probably best to do so.  This is a question for your Designated Broker and/or "Legal Hotline".

yes disclose it, you still have time to sell it, but its a material fact that effects the sellers ability to convey the property.

As mentioned, this is a question for your Broker and Legal Representative. 

In AZ, we had a landmark case in 2000 addressing 'whether it's confidential to disclose seller's ability to sell / buyer's ability to buy' which changed things. A notice of trustee's sale is not hard to find out -- should be in any title co. property profile and we pull them before we make an offer. We also need to disclose, not in MLS public remarks but in agent remarks and to agents, and in written disclosures to a serious buyer.

No, they don't have to disclose that to potential buyers. Evaluate sellers situation though, sometimes sellers will come up with money to bring loan current. And sometimes lenders tell sellers to keep trying to get contract and they will cancel foreclosure. If you disclose it, you could be hurting sellers chances of getting a contract because buyers and their agents will just say, " well, let's just wait until it goes to foreclosure and maybe we can buy it cheaper"

Good morning Anthony. Depending upon the state that you are in, it sometimes takes months or even years to complete a foreclosure process. A lot depends on the amount of debt compared to the value of the property.

Only twice in my career and both were short sale listings to begin with.  One we had a successful short sale and the other did a deed in lieu and even got "cash for keys"

Yes! As it is pertinent information. And jump on it fast with the owner and lender to preform a (likely-Don't know all the facts) short sale (if not already in one) or possibly cure the default another way other than foreclosure.

A "deed in lieu" is a voluntary foreclosure and goes on the record as a foreclosure, so best to avoid that as well. A good default negotiator can stop the foreclosure process.

I'd reach out to your state's legal line.  If the escrow closes prior to the auction date, it is likely a moot point.  I bought one like that.  Closed a week before the auction.  Check with the bank and notify the auction administrator (who likely sent the notice).  If you have a contract you can send them, they may be willing to talk.

I would say, even if the law doesn't requires the notice or disclosure, the best answer would be yes. The more information people have the better things will usually go in the transaction. 

I would say it has to be disclosed, it is something that would effect the sale of the house.  I had a lender once that was going to foreclosure on Tuesday but on Monday night we received a full price cash offer.  The lender would not accept.

We would in Ca.

Sounds material - the seller may lose control of the selling process.

Of course

The disclosure requirements are usually set my the MLS rules.

I would disclose that information to create a sense of urgency.

Smart real estate professionals will watch for the notices of trustees sales in their markets.

Yes, of course you disclose it.  We disclose what we know ... most especially "material facts".  Why would anyone consider not disclosing it?

it may depend on mls rules and state laws. 

My inclination would be to disclose and not surprise anyone. If the seller has equity and time, depending upon market conditions, may hold back a bit. If a short sale situation, absolutely disclose!

I agree with Jeff Pearl on this one.

This it NOT a material fact about the Property, just a problem in the sellers Negotiation time-line, Disclosure of this would by a breach in your Fiduciary duty.

If I were your seller and you destroyed my negotiating position, I would be going after your license.

Anything that can impact the sale should be disclosed.  

Yes, I believe that you do since it changes the dynamics of negotiations, etc.

I think the more crucial issue is- Will it now be a SHORT SALE ?

Disclose..it is a material fact.

Yes . I have in the past noticed listings that have Lis Penden notices and listing agent does not disclose and I call them up because they were clueless and need to discuss with seller how they intend on giving clear title to buyer. Can the pay any deficiency or should the do a short sale .

It is a material fact.

Jeffery Jones got this one !!

I think it depends. Is the seller in financial trouble so that he cannot make mortgage payments but there is equity in the home so that it can be paid off upon sale? Or is the market value lower than mortgage amount, then seller should consider short sale and it needs to be disclosed. 

Anthony - As others have already stated, I would consider it a material fact, and would believe that it should be disclosed.

You didn't say whether you already have an offer or are in contract. In California when an owner occupied property receives a notice of default and an investor makes an offer you must use a NODPA contract. So I am not sure why anone would not consider this not pertinent information. Of course you must disclose.

1. Yes, I'm a full-time Realtor

2. 22+ years

3. 50/50