Homesearch issue: NationStar is seller, but other bank on title

[John D.]

I'm running into an interesting issue with a couple of homesearch properties.  Nationstar is listed as the seller in the purchase contract, but they don't actually own the properties -- apparently they are simply representing the bank who is the owner.

Not surprisingly, my lender needs to see the actual owner listed as the seller on the contract, in order to provide the loan.

Anyone else run into this issue?  Going to be a real pain for me if I need to close in cash and then cash-out refi them, as these are not small transactions.

[Chris Martin]

I'm not sure I'd be alarmed, but certainly the title company and/or selling attorney can clarify.

On the HomeSearch.com property I have under contract (as of today) the owner is NationStar. So I've not experience this directly. The question is what does the foreclosure file say? The other question, is there any title issue? In their emails, check to see if they say what their title opinion is. This last contract had a "grade" assigned by the title company of A-E and R... and had an indication to if they were ready to close or not. The servicer (with trustee deed via trustee sale) most likely has an assignment agreement in the foreclosure file at the courthouse or with the trustee's office. I am assuming this is in CA, a trustee state. The other question is if the foreclosure case has been completed and recorded, since sometimes their sale is prior to recording but after rights are assigned. Transfer is rarely (in my area) to the trustee, and rather to the plaintiff. The plaintiff then can deed to you or HUD or whoever. There is probably a clause to this effect in the contract. I'll look at mine to see if I can find it. Maybe tomorrow.

Update: Page 14, section F of the contract - under title, I'm assuming this is a standard form and you are using DocuSign.