NOD filed by trustee before susbtitution of trustee is recorded

Foreclosure Investing
1

You’ve been very helpful, so I have another question:

Does this NOD and subsequent NTS look valid?

A property I am interested at trustee sale had a NOD record in January 2010 by Recontrust as trustee, and then in February 2010 a substitution of trustee was recorded that made Reconstrust the trustee. On that same day in February, US Bank was made the beneficiary , as trustee for the Mortgage Backed Security in which the loan was pooled by Lehman brothers.

The original loan was made by Countrywide, which was acquired by Bank of America, which owns Recontrust.

Is it possible Recontrust was not the Trustee when it filed the NOD in January?

Ninety days from the NOD have elapsed and Recontrust lists an original NTS date in May. Is the upcoming trustee sale valid? Or is it possible Recontrust may need to start over?

2

I have talked to an investor who has purchased numerous properties at trustee sale and he has told me that the subsequent recording of the Substitution of Trustee would not prevent him from bidding on a property. If you were the successful bidder at trustee sale and the homeowner indicated they were going to try to overturn the sale based on the recording of the Substitution of the Trustee then you may want to contact the trustee to see what their position is before you invest additional money into repairs on this property. If the trustee is ready to do battle and uphold the sale then proceed with your plans. Finally, I was also told by this investor that if you have purchased the property at trustee sale and realize you have made a huge mistake you may choose to use this as a reason to try to rescind the sale and get your money back. It just depends on your position and what your intentions are as to how you use this information.

3

Thanks for this helpful response.

4

You can substitute trustee any time prior to Noticing the sale.

5

I have a similar question. I bought a property at trustee sale. The ex-owner is suing the lender for illegal foreclosing, trying all kinds of delaying tactics to delay the eviction, and even named me as a defendant for wrongful eviction in the case against the lender. I tried to talk to the trustee company to rescind the sale, but they are very firm that foreclosure is legal, and refuse to rescind the sale.

Can anyone please advise if this sequence of events is valid?

  1. Deed of Trust with Trustee-1 and Beneficiary-1.
  2. NOD by Trustee-2
  3. Assignment of Deed of Trust to Beneficiary-2.
  4. Substitution of Trustee to Trustee-2
  5. NTS by Trustee-2

This house is a big headache, and has cost me tens of thousands of legal fees for eviction, and I don’t see the end of it. Can I use any reason to ask the lender to rescind the sale?

Thank you!

6

Sorry to hear that you bought a difficult one, unfortunately they do happen from time to time in this business. If you have spent tens of thousands on your unlawful detainer my first recommendation would be to find new counsel. See my comments here for more thoughts on how to handle this situation: http://www.foreclosureradar.com/forum/buyers-and-investors/buying-auction/ex-owner-filed-lawsuit-against-me-after-trustee-salewhat-s#comment-14143

7

Thank you, Sean! We finally won the eviction case after 3 months and tens of thousands attorney fees. The ex-owner put a Lis Pendens on the title after we recorded our deed and declared bankruptcy. Our attorney said we couldn’t sue the ex-owner because they are under bankruptcy protection. I don’t think we can afford to sue them either. The only thing we can do right now is to rent the house out.