I just received a call from my realtor saying that he wanted to let me know that the home we just purchased through foreclosure 5 days ago was sold today on the court house steps.
He knew this because the listing agent was called by the winning bidder and wanted access to the house.
Needless to say, I am a little worried even though we have all the paperwork showing we purchased the home fair and square. But we do not have the title in hand yet.
I wonder how much he paid.
I wonder if he has any right.
We have already invested several thousands of dollars… I am worried.
He is supposed to call me back and let me know what happens.
It sounds like Flagstar’s short sale department did not speak to Flagstars foreclosure department.
Does anyone know anything about what could happen. My brother found this article but it did not help much.
Short sale mistake
U P D A T E :
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1/4/12 – Email from Title company to Flagstar:
Please be advised, the listing agent for the above referenced transaction, xxxx, received a call earlier today from xxxx (757-xxx-xxxx) who stated he purchased this property at the court steps via foreclosure today. See attached trustees sale print that was provided to us.
However, this transaction closed 01-30 per your company’s approval of the final lender approved HUD (see email below). Due to the court’s holiday schedule the documents could not be recorded until Tuesday 01-03. The transaction was disbursed according to the buyer’s closing agency and the documents were overnighted to you per the shortsale approval letter yesterday 01-03..
I have attached all seller executed documents (shortsale documents and final HUD) for your reference.
The UPS package for the shortsale package sent from the buyers closing agent, Advance Title, with the proceeds check for Flagstar’s Proceeds was delivered as per the shortsale instructions at 10:09am today 10-04 and signed for by “xxxx” according to UPS. The tracking number for your reference is # xxxx
The call from xxxx has caused all parties to the transaction to become alarmed. We ask that you address this matter immediately so all parties may be further assured your shortsale agreement was in good faith. Please advise our office how you intend to proceed as soon as possible.”
1/4/12 – Email from Loss Mitigation /Flagstar to Title Company
“Good afternoon. I am currently working on this with the attorney. It appears that today when the request was made to close the file with our attorney that the request occurred minutes after the sale took place. The reason that the sale was not place on hold sooner was that the documents for the closing package were not received prior to the sale which caused a delay in the request.
I am currently working with the attorney in determining the process to rescind the sale.
I will have an update by tomorrow morning at the latest.”
1/6/12 – Email from Loss Mitigation /Flagstar to Title Company
“I am currently working with the foreclosure attorney in rescinding the sale. The third party buyer has been exceptional in assisting us with this as the purchase was valid. At this time I am working on getting the deposit made back to the other individual, and actively seeking assistance from our attorneys to determine if the process can be sped up.
Unfortunately, this has never occurred before, especially with a third party buyer so I cannot provide a time line. Our attorney has advised me that given the cooperation of the other buyer, this will be a quick and clean process.
Any updates I receive I will forward.”
It looks like everything is going to work out just fine. That was scary for a couple days. Hard to sleep, we already have enough going on with our jobs, fixing up the house and moving without worrying about if we really own the house.