Trustee Sale Strange Situation?
I succesfully bid on a property got it at a good price at a Trustee Sale yesterday.
Tendered a 5,000 cashiers check at the sale and the balanced wired today.
Today at 8:30 AM the law firm handling the sale has called and informed me that the client ie the bank has worked out a payment program with the owner.
Have never run into this one before is the property mine>?????
I think it depends on the terms of the auction sale but this law firm is telling me they can resend the sale.
At the auction I specifically asked if there was a redemption period and the suit attorney said no.
Is there an easy answer to this one????
I have to respond to the law firm one way or the other pretty quick here > they have my cashiers check and also the balanced has already been wired to them.
SKI
Read my post the redemption is right up to the last minute BEFORE the auction AFTER no way!!!!
I have already called 2 attorneys they have NEVER heard of this and they DO the auctions and hunderds of them and never has one gone back on!!!
Any senior people out there??????
SKIDODDLE
Texas
Land of the wild and home of the "GOOD OL BOY"
Born and raised there now in Florida. You know as well as I the lawyer will just say he redeemed in last few seconds. Probably kickback also from lender.
You ain't going to win. Just move on...
Actually, it might depend on what state you are in. In California, appelate court upheld foreclosure sale even though the property was sold and paid off in the afternoon before the sale because the payoff information didn't get routed to the proper person in the bank. If the property is a TRUE bargain, I suggest you contact an attorney and investigate - if they cannot prove that workout plan was approved before the sale, you might have a case.
Hello Ski,
I got to agree with KnowledgeSpoung on this one. Let it go and move on to the next deal. If you had title to the property I might feel that you had a shot at fighting this, but seeing that you only made the 10% down payment. You don't have anything to gain by pushing this one. You may feel like you got a raw deal, but you will get over it. Sorry to sound a bit cold, but you can not win.[ Edited by Vern on Date 07/18/2003 ]
Ok this is what I found out I propably will not win > in Utah they side with the poor slob that stupid enuf to wait till the last moment BUT the law firm is all so sorry and now will give me all the info I want and need PLUS alert me to the better deals if possible.....always use the bad thing to your advantage that is what I say!!!!!
I am now calling all other firms and getting the same treatment.
SKI
the lender and or attorney for bank is responsible, if the workout was not made prior to the referee saying sold. i know of cases where the very same thing had happened and the lender had to compensate investor, because they were legit buyers at the auction. i would petition the court to uphold the sale and demand from the bank's attorney to show proof of the workout prior to the sale. if there is no proof, you can try to negotiate compensation or else you can threaten to proceed with a lawsuit..
I am doing just that I am asking the law frim to write down EXACTLY why they are resending the sale ....if the explanation is weak then I will then ask for the lender to provide proof of the workout............I smell a rat here and really wounder if the lender really has a workout ....the property has been vacant for 3 weeks and there is certaintly no one there in it so who the heck is working this thing out!!!/???? I am not laying down here on this one but am nicely asking for proof.
skidoddle:
move on the next deal. theres plenty out there.
If you have so many pass em to me I go thru 20-30 to get one very good one this was it.........so I have another 20 to go thru.
Skidoddle
I would fight. Since the owners have moved out it sounds like another investor (maybe the attorney) trying to step in on the deal. Your money was accepted. The attorney could have stopped the sale from taking place with a simple phone call.
keep us updated.
Swank here is what I found out ......it is very very intersting.
The bid was set THE DAY OF THE SALE> at this late date it means the lender HAD to call up the law firm handling the sale to set the bid........IF and IF there was an ongoing workout the lender would have surley postponed it THEN and THERE....not set the bid!!!!
Also at the sale my rep called me as usual and the attorney they sent to the courthouse steps to conduct the sale had some concerns about my cashiers check SO he called the main office and talked the the main lady that handles the sale> So at the very time the sale was being conducted they still had no OBJECTION to advancing with the sale.
That one call is going to be a BIG PROBLEM for them.
Ok when I bought the property I paid $102,233
And the first was for $127,000 and with 4 late payments = $3000 and $2000 in customary fees we get $5000 bucks owed >
$127,000 + $5000 = $132,000 or pretty close to the what I think SHOULD have been the bid amount of $132,233.
I think they made a TYPO $102,233 when they should have sold it for $132,233.
Later in the day, AFTER the sale the law frim communicated to the lender "Hey we sold it for $102,233 the lender had a COW!!!!
I can just see them talking to each other whatt the hey!!!!!! what kinda reason can we now give to get out of this!!!!!! Only one is there was a workout in progress!!
We have confirmed the property has been vacant for at least 3 months and abandoned.
Now come on................... the owners are not renting it and not living in it!!!
So it is logical to assume something else like my above explanation is possible. Maybe but not that a workout was going on and if so was it consumated BEFORE the auction!!!!
Also the trustee ie law firm was in a BIG hurry to send my money back.
They at first wanted to send my cahsiers check back ASAP and then wire my funds back to me the that day.
Well I said Hell you have and endorsed check that my bank will not take back UNLESS you are here when I cash it > impposible for you .
So they are sending me a cashiers check for the whole amount by FED EX which I am to recieve Monday. The point here is by sending me back a cashiers check for the whole amount they just proved they have MY WHOLE AMOUNT OF MONEY IN THEIR ACCOUNT!!!!
That is quite important.
Also we then said when you send back the check we are going to need a letter of explanation WHY you resended the sale.
If any of you are in Utah read this last part because I spent and entire day calling Utah attorneys and some old time trustee sale investors on this one and here is the punch line.
There are ONLY a few specific reasons how a trustee ie law firm can cancel a trustee sale AFTER it has been conducted and a sucessful bid accepted.
It all centers on if the ORIGINAL owner of record has somehow been working out a payment with the lender FORECLOSING and both parties came to an agreement BEFORE the actual day and time of the auction. Or a BK and other occurance ONLY from the owner that would ALLOW the owner to save hsi property....come on the owner is not even living in it .....it has been abandoned!!!!
Now folks if you have read this ongoing saga who in the heck believes there was a workout that was agreed to before this auction.
NOT ME.
So when we get the cock and bull written letter which I AM CERTAIN will be written by this completely disorganized law firm the next step we are going to take is
ASK for written verification from the lender that a workout agreement was entered into between them and the ORIGINAL owner of record BEFORE the day and time of the auction.
In fact I told this law firm that we missed 2 of their other trustee sales in another town 40 miles away because we ran to this one.
They said OH SO SORRY we will make amends so we will let you bid on those!!!!
Now come on NO ONE CAN actually legally do this but be damned they called the lenders who took back those propertys at auction and they are going to let me bid on them this Monday.
You cannot do that!!!
I smell a BIG RAT!!!!!!!!!!!!!!!
And another thing I called the law firm that is the second largest trustee in the state and wanted to get the exact procedure on their trustee sales....I fianlly got thru to the lawyer owner cuz I am not going thru this utter BS again and now want the EXACT procedure.....he was curious and said hey this are pretty strait forward why the technical concern as to sale time and possible problems AFTER the sale.
I told him what had JUST happened to me with the other DING DONG law firm which he admitted was completely disorganized and had a bad REP in the BIZ.
He also was dumfounded at the explanation they gave me and told me EXACTLY the law which I have stated earlier.
If there is a mistake made by law firm or lender that is NOT ONE OF THE reasons that can be used to cancel or resend the sale AFTE THE AUCTION.
Without the specific legal reason or account that will allow them to resend the sale I am not going to let them off this.
Think they would be nice and warm and fuzzy if I did not get them the entire money within 24 hours............. no fricken way they would take my $5,000 check and say good luck sucker.
By the way the lawyer that I talked to that owned the other Trustee firm and the second largest service in the STATE stated to me that it is customary for them to take the whole $5,000 check when we all screw up!!!!
Look folks this is a cut throat BIZ and if we screw up we pay and if they do they don't.
No judge is going to back them here.
If it has anything to do with allowing the original owner getting his property back I will do it ....really bad Karma the law firm or lender screws up and trying to cover up I AM GOING TO GO AFTER THEM WITH A FRICKEN
ATTACK DOG LAWYER!!!!! AND I GOT MR BULLDOG IN UTAH JUST FOR THE OCCASION!!!!
SKI[ Edited by skidoddle on Date 07/20/2003 ]
In Colorado a trustee sale can not be recinded without an order from the court. Although uncontested I have seen sales recinded after the sale without such order. I think you need to analyze your deal and see if it is worth the fight. Unfortunately you will probably have to take the offense.
It sounds like your talking to an attorney, which is a smart move. The last dispute I had with a trustee we filed a Temporary Restraing order against the trustee which "tied their hands" until the issue was resolved in Court. In Colorado you are entitled to hearing on TRO within 5 days after proper service is made. Also consider filing a Lis Pedens on the property.
If it doesn't get to messy it should only cost you a few thousand dollars.
good luck, and please keep us updated.
Thanks for the info swank in Utah they have to send u the deed within 72 hours if they auction it off if there is not pretty good reason like the owner had a work out proir to the sale.
I have already sent the trustee a letter stated that I scuccessfully bid on it a tendered ALL bid amounts. For me to sand down I will need written proof of the work out agreement with the ORIGINAL owner.
The Trustee has tried some slick things which makes me think they are messing around!!!!!
I will post the outcome......they are trying every way to get out of it!!
SKI
Ok the lastest in the Saga.........the trustee still has not responded to me and said they would .....also upon an accepted BID at the auction, which I did. And also I wired the balance within 24 hours the trustee has 72 hours from the time the entire bid amount is tendered to send me my deed.
That deadline was today Wednesday at 11:00 AM.
There is NO exception to this rule they have to provide me with the deed and if they do not it is a violation of Utah code.
Seems like the fish is frying in the pan!!
Things getting interesting!!!!
SKI
give them an alternative....that you are willing to walk away and give up all of your rights in the property for x amount of dollars to settle this thing. if it boils down to that the attorney's office screwed up in getting the accurate numbers to bid at the sale and in this case the upset should have been 30k more than what you bought for at auction, they'd be willing to settle for say 15k because they are on the hook for the balance to the bank. they will also hurt their relationship with the bank and possibly lose their business to another law firm that can handle matters the right way... so they may be willing to compensate you for you to go away that way you dont make too much of a big stink with their client and the courts.
you are in the drivers seat...