Or even before you get the Deed? ? ?
?It doesn’t happen often, but it is not unusual. ? Sometimes you get contacted right away before you get the Deed and they return your money. ?The Trustee may or may not give you the reason. ?Often it is because a bk. was filed. ? ?
? ? Other times they have sent out the Deed, you record it. ? Just recording the Deed often can involve a 4 figure expense in cities with a transfer tax. ? Often a month has gone by after recording, sometimes three months where you have already made a cash for keys deal with the occupant. ?The Trustee says “Tough shx”, we are recording a “Rescission of Trustee’s Sale.” ?We’ll send you a check for what you paid in the next 10 days.?
? ? ? ? One of our associates decided to battle. ?The attorney, who is THE expert in representing creditors in Bk. Ct. in this area and has made law over the years in State and Federal Court in the foreclosure field - decided she had a good case. ?
? ? ? ? ?As in many cases where a bk. is filed - ?There is NO automatic stay. ?That means the lender was free to proceed with the sale. ? Debtor’s who have filed multiple bankruptcies do NOT automatically have their sale stayed. ?They have to get a Court order. ?In this case, the debtor deeded off a partial interest to a new person, who filed a new bk. ? That doesn’t work. ?The Bk. Court followed the law (being that it is the number of times a property has been tied up by a bk. not the number of bk. one person has filed) - and declared there never was a Bk. stay in effect at the time of sale. ?The purchaser is entitled to his Deed.
? ? ? ? ? An old acquaintance just called about a situation described above. ?Three months after Deed recorded. ?I hope he decides to contest that. ? ?I think all you Foreclosure buyers should contest some of these?rescissions of Trustee’s Deeds. ?
End of Rant.?