Who do the bank attorney's favor


#1

Recently purchased a property in California and recieved a call from the trustee a day later. She stated that they WERE in the process of approving a short sale on the purchased home and wondered how I felt about a rescission… “How do I feel” is a strange question to ask after a sale. I explained that I would not have won the bid if I did not want the home. She stated that she would check into the matter.

1 week later I called to get info on the status of the Trustee’s Deed and I was told the file was being reviewed by their attorneys. How likely will they rescind the sale even though it seems the TS process was legal and I am a BFP. What recourse does an investor ever have with these mistakes?

I understand the business of Trustee sales as with most responses will be to move on. After being in this business for 5 years, I’ve had 5% of successful bids at TS reversed. Most have been due to BK and false BK filings. Just getting tired of having no voice in this process even though they are holding hundreds of thousands of my dollars in the review.

I would have no problem with the reversal if they allowed me to reverse any of my future purchases if I too made a mistake =).

Any constructive thoughts are appreciated.


#2

They can’t rescind for no reason, unless all parties agree. If you want the house then make it clear that you plan to fight the rescission unless there is a clear legal basis for it.
Please keep us posted on what happens!


#3

Is it worth the battle? How much was the short sale for? In lots of cases, the lender gets more at fcl. sale than they would take at a short sale.
If it’s a deal where they approved the seller getting a small amount out of the sale - maybe if you offered cash for keys in the same amount, the seller would back out of the short sale.

As for phony bankruptcies - I have had at least one (maybe 2) filed by a “bad actor bidder” who was annoyed he didn’t get the property because he realized he underbid. The Trustee returned my check. I pointed out that the Bk. was a phony (same last name, different first name and diff. city, property not listed in schedules). They took the check back and issued deed.


#4

Sometimes it is the real estate agent that listed the short sale that gets really upset and starts calling the lender / trustee and causes a stink. Most of the time the owner doesn’t really care any more, it’s the agents that start making a stink.