Bought a property at a trustee sale; the owner is trying to reverse


#1

Hello:
A couple of days ago we purchased a house at an auction in CA and later that day stopped by the property to check on the occupancy. We ended up meeting the owner and informing him about the sale. He said he wasn’t aware and needs to see some proof (the property has been originally put up for sale in Nov 2009, but had a couple postponments untill it was updated last week with a starting bid and subsequently sold to us). Today the owner contacted us asking to give him a couple of months to see if he can get an attorney to reverse the auction. As far as we know there was no misconduct in foreclosure process. Can the owner really get the auction reversed without good reason? Is there anything we can do to prevent it (we want the house)? We haven’t received the deed yet. Can we get the deed expedited? thanx in advance


#2

You are under no obligation to give the prior owner time to seek a recession of the sale. You can contact the Trustee and ask for the Deed status and politely encourage it’s quick processing which may or may not speed up matters. Once the deed is received, record it immediately and start the eviction process as necessary. So long as the Deed is recorded within 15 days of the trustee sale, the recording relates back to the morning of the sale. In the future, if you by a house and don’t have a need based on ROI or otherwise to expedite eviction, it may be best to wait until after the deed is recorded before contacting the occupant so as to minimize the chances of a successful post sale recession.


#3

He can still come back and get the foreclosure reversed. I know of somebody that was forced to move out of the property 8 months after they had moved in. The previous owner somehow reversed the foreclosure and won.


#4

This was in California.


#5

I have a property with a sale date in a few days. In checking the trustees Sale site: “LPS”, the sale date shows the sale postponed to about 30 days in the future. Can we rely upon this being true or can this be changed back to the current (2 days from now) sale date? We have printed this out showing the sale date middle March instead of this week in February. We are currently pursuing a loan modification.


#6

Hi Abel, When you use the online trustee information or their automated recordings you will note that there is a disclaimer regarding the accuracy of the information that is being provided. Under the current foreclosure law the sale is not officially postponed until they announce the postponement at the time of the posted sale date. They must announce the postponement publicly. In our experience the websites have accurately predicted what has been announced at the sale when a sale has been postponed. I would stop short of saying you can completely rely on that information even though I would be surprised if it was not correct. Since you have taken a screen shot of the site showing the postponement you would certainly have some documentation to show that the trustee was misleading should they proceed with the sale. Unfortunately the laws are silent in terms of the online posting of information.


#7

Hi, I have a question. I am currently pursuing a loan modification and I received permanent offer signed and notarized and sent back to the servicer. Spoke to the trustee in charge of the sale and I was advised it was reinstated. Can my home still be sold at auction? How does this get recorded. Does this mean the foreclosure is reinstated or the loan reinstated?

thanx


#8

My house has been sold at the sale date back to B of A. Can I legally have the trustee sale reversed? I was in process of a short sale but ran out of time. Can 3rd party morgage brokers help you with rescission or is it to late and you can’ t get it back? is this a scam? I don’ t want to waste money and time if it can’ t be done.


#9

Hi,
i recently saw that the house i wanted to bid on was postponed for a month. I wanted to see the house and decided to drive by and check the house out. I got a chance to meet the owner and he told me that he had just signed papers and had sold it. Is that possible? A couple days later i still see that house i;m interested in is still up for auction…which one is it? Has anyone had any similiar experience?


#10

Hi Summer, His definition of “sold” may be that he is in contract on a short sale or has a sale pending. You also have to remember that when you are approaching homeowners to talk to them that this is an intensely personal (sad, embarrassing) matter and he may have even told you he sold it just to make you go away. The sale date will not be canceled until an actual sales is recorded and finalized. We have seen numerous cases where the buyer in contract has backed out or cannot get financing at the last minute and the foreclosure sale is then held even though the property was in contract prior to the sale.


#11

Sales are set aside quite often. Usually it happens before the Deed is issued and they simply send your money back. Once in a while it happens after the Deed is recorded. Most Professional bidders DO NOT contact an owner/occupant until they have the Deed in their hand. This cuts down on the possibility you might wake up the occupant to try and stop the Deed from being issued.


#12

Josh - Why bother? You owed more on the property than what it was worth? Banks aren’t required to approve short sales. Now that B of A owns the property - if you are still in possession - ask them for some cash for keys. You’ll at least get some money to move with. Banks do this all the time. Eg. B of A postponed the sale of a unit next door to one I had for 13 months. The place was vacant - but the misguided owner thot it was the moral thing to do to try and sell it on a short sale. The red tape involved took a long time to try and get approval… The bank turned down a sale of $120K. They finally decided to fcl. for $98K. I bought it on the steps because I knew all about the property and knew it was vacant… In escrow for more than $120k. They were owed close to $300K! One thing the bank had the gall to ask of the poor owner was “We’ll approve a short sale if you put $5K in escrow to sell your over encumbered property and sign us a personal note for $15K!” They did back down on that early in the process. Out of curiosity - what did you think was the advantage of your doing a short sale?