I bought a house at auction on 1/11/13. I called the trustee(ReconTrust) and they informed me that the owner had filed a bankruptcy and I would not receive the trustee’s deed or my funds back until they reviewed the bankruptcy and decide what they are going to do.
The representative from Recontrust told me it would probably take 2 weeks?or more and she couldn’t give me any indication of when I might find out if the BK goes through or not. So now I have no house and all of my funds for buying at auction are tied up, preventing me from doing anything
So my question is how long does this process usually take? Looks like the buyer filed the BK a day before the auction.
Better that ReconTrust review the BK submission to determine a valid and timely filing (BK must have been filed before the trustee sale to “delay”). Lenders have been presented with more than a few bogus BK filings just to delay sales, hence that verification is important. The vetting process should take a day or two at most. And I would stay “on” ReconTrust and push them to get you the trustee’s deed upon sale ASAP. They have your checks and hence you’ve every right to push them for a prompt resolution. The “two weeks” sounds like a standard answer they give whenever a file has been handed off to their legal dept for review. Unfortunately, you may get the “talk to the hand” treatment until “legal” is done. Unfortunately, what should take one day (vetting a valid & timely BK filing) can stretch to a timeline that’s beyond reason.?
As you know, it would be better to receive and record the TDUS within?15 calendar days of the trustee sale (as that “prefects the sale” as of the date of the auction). If the BK filing was late (just after the sale) you stand a better chance of the sale standing if you record within 15 calendar days. That said, a late TDUS filing is not rare and remains perfectly valid.
If the sale does get rescinded due to BK, you can follow the BK filing/process on PACER … a subscription service w a reasonable “per page view” fee.
I wanted to say thank you for your informative response, that sheds a lot of light on the situation for me I appreciate it. They have been giving the “talk to the hand” treatment(as they don’t want to give me anything unless they figure out the BK) and from what you said it seems all I can do is put pressure on them. As of now I have hired an attorney to mail them a letter saying that I want my refund back asap. Hopefully that will expedite everything.
Thanks ?again Danny
? Usually Danny covers EVERYTHING. ?He left out the possibility this was not the first BK. that has been filed to buy a free ride. ?If it is the 2nd (3rd?) filing to stop the sale - there is no automatic stay. ?You have to get a specific order from the Judge to stop the sale. ?