All Forum Posts by: Kim Knox

@John Gray 

Call the listing agent and have them contact the bank to see if they will delay the foreclosure auction if an offer is received.  It is on the market as a short sale?

Yes, a foreclosure can be delayed.  Each bank has certain requirements of how many days before the auction an offer has to be received to request a delay.    

Has the price been set for the auction?  If so, it is an attractive price?  

Is it a judicial or non judicial foreclosure?

@Elizabeth Pharis Trust me, you were waiting for Fannie Mae, not for the Listing Agent.  Offers are submitted from your Agent (Selling Agent) through a computer system that communicates directly to Fannie Mae's Asset Manager.  The Listing Agent is simply notified via email when an offer is received, then the Fannie Mae Asset Manager determines how and when to respond to an offer.  The Listing Agent has little to no impact on the sale, or which offer gets accepted.  The Listing Agent and Selling Agent are notified of Fannie Mae's response via email, then it gets communicated to you, by your Agent.  It usually takes Fannie Mae about a week to formalize a bank addendum and sales contract, then you sign, then it is sent to them to execute.  Once executed, you are in contract.  

It is possible that the Selling Agent tried to lure you into a sale that would harm you, but I find it hard to believe.  I think the mistake your Agent made, was not recommending you call the appraisal district yourself to confirm the address issue had been resolved.  It sounds like she took someone's word for it ("we" did extensive research), when she should have done the research herself AND involved you.  I never do research where I get verbal answers without the involvement of my Client.  My client must be present so they can see and hear where I am getting the info (or misinformation) directly.    

You might keep friendly with your Agent, instead of blaming her. I say this because she saw the sign in the yard, she saw the agent detail through the MLS that indicates the home was the sale. She knows whether the prelim included a tax lot map. She got the information about the address issue and conveyed to you (she can say where she got this info, and when, and why she believed it, and so on). She is your best witness, as far as I can tell. Your attorney will have the best advice for you, obviously. I would like to think that most Agents would be absolutely devastated to know something happened like this, I just can't imagine doing it on purpose.

Disclosed limited agency is not uncommon, and it does not automatically mean anything improper or shady is happening.  In my state, in every contact, it spells out relationships between principal and agent/broker.  It is called Agency Disclosure, then their is a final Agency Disclosure as well.  They did this a long time ago when Buyers started having their own representation in transactions.  

It is my feeling that you actually might be smart to align with Fannie Mae, (and their attorneys) and pursue the title company together.  Not only did Title allow the recording of your sale, they also allowed the recording of a mortgage on the wrong tax lot!  Fannie Mae will likely realize you could easily pursue them as well, and might appreciate the opportunity to work together to resolve.  Just my opinion.  Something to consider.  Whatever you do, make certain that your attorney fees are paid for you.  Title companies and Fannie Mae have attorneys on staff. 

I have shared this story with my Agents at my office, it is something we can all learn from.  Interested to know what direction this takes.   i will be watching for your updates and wishing you the best.

Elizabeth, Let me just take a minutes to tell you how sorry I am for this absolutely shocking situation, it is one of the worst real estate stories I have heard. It is truly shocking, I just can't even believe it.

They have the metes and bounds, but the title reports in my area are always accompanied by a plat map, highlighting the tax lot being insured. They do this because no one can read and interpret a metes and bounds description. Did you get a copy of the plat map showing the tax lot being insured? Also, were the property taxes on the prelim the same as the property taxes on the listing? Was the insured Seller Fannie Mae on the preliminary title report? Was the the street number physically posted on the home somewhere when it was for sale?

In my area, listings are identified by street address, then further described with a legal address within the listing. A legal address generally looks something like 36N4WCC Tax Lot #400. Was a specific tax lot listed through the MLS? Further, the size of the parcel is also indicated, and my guess is, it was NOT listed as 0.03 of an acre lot offered for sale.

The current title company can blame the title company from 2004 all they want, but your grievance is with the current title company because they offered YOU clear title. If the title company has to pay out, they can then file a claim against the previous title company if they like. You have no reason to involve yourself in their fight. 

You have so many things going for you in this case. The biggest item is that you get to sue two parties with extraordinarily deep pockets. The Title Company, and Fannie Mae! Pardon my excitement, but if this story involved only broke people, it would be financially devastating for you. In I believe this is a punitive situation because of the time and money you spent on the home.

So many things on your side in this situation that I can see.  1. the mls listing i presume had photos of the house, and the house data, along with photos of the home you purchased. 2. your sales contract had the street address of the home. 3. You cannot be expected to interpret metes and bounds description, that is the title companies job. 4. You bought a home in good faith. 5. You improved the home in good faith. 6. You hired a professional to assist you in a safe purchase.  7.  You purchased title insurance.  

I don't blame the listing agent at all, because they are actually not allowed to research a property they list UNLESS they are representing the Buyer. It is really up to the Buyer, and the Buyer's Agent to perform due diligence regarding an REO purchase.

Lastly, is the driveway the only access to the son's house, or does he have access another way?

I want to say, that the series of events that took place that created this problem is so unbelievable, it is not typical in the most complicated of REO purchases.

I have bought through hubzu.  They are fine, but it is not for the faint of heart.  Read the contracts carefully.  I pay for the home inspection before bidding, because you are not allowed an inspection period after executed.  Can be long closings because of deed issues, I have had them take 4-5 months to close.  During that time, if you are paying cash, you are not making any money on your cash, which is frustrating.   I can't remember if this one charges a 5% premium above your bid amount, but I think so.  

So, read the contract with hubzu carefully, and review the contract carefully.  =)

If you lack experience, hire a Realtor.  Hubzu pays Buyer's Agents.  I have seen them market homes prior to the right of redemption period ending on judicial foreclosures.  That can get complicated. 

@Shefali Raina Changing the LLC ownership name is something you need to contact an attorney about. It is just a sneaky way to transfer ownership, without transferring title. I have heard of people trying this before, but I do not know how it results for them. A Realtor cannot answer the question of whether than would be considered fraud, but I would not want to be involved, I can tell you that much.

Refer to the link I posted in my earlier response with the Wells Fargo short Arm's Length Affidavit, it tells you the answers to your rent back situation, and the Seller maintaining occupancy.      http://www.shortsalesinct.com/banks/wellsfargo/wel...

My interpretation of your risk in your current situation. YOU are the one who signs this affidavit. YOU are, not your friend, YOU are the signer for the current LLC. YOU would be making agreement to transfer the LLC after YOU know the terms of the affidavit YOU signed and had notarized. YOU had to provide your articles of org to prove YOUR ability to sign on behalf of the LLC, both to the Title Company, and to the Short Selling Bank. They have copies of it without your friend as a signer when you initiated the sale. YOU are absolutely at risk, your friend might not be, as he could say he was not aware of the terms of the short sale you signed to purchase the asset that belongs to the LLC.

I don't get involved in this kind of risk even if I stand to make a lot of money, I certainly am unwilling to participate for free.  It makes no cents =)

In my area, the listing office has 3 business days to report a status change (pending) to the MLS. Sometimes they have office staff that handles status changes that do not work on weekends, so I would not be overly quick to call the agent a liar.

It serves the Agent or her client no purpose to say their is a pending sale when their is not an accepted offer. 

You might be able to charge them a per diem for occupancy after the vacancy date to motivate them to be out.  For instance, draft a document that says something like  "Tenant can remain at property after the contracted vacancy date at a per diem charge of $100 a day, ending on June 17th.  If tenant vacates earlier, a prorated refund of that per diem will be offered.  If tenant does not agree to per diem free, vacancy date to remain on (Date).    

That way, you are making it clear you are not extending the lease, you are motivating them to get out as soon as possible by paying a high per diem fee.   Obviously, you have to come up with the per diem fee that motivates.  Not legal counsel, just something to check in to. =)

@Account Closed

Sometimes a homeowner who occupies a home can be eligible for relocation assistance, paid by the short selling bank at close of escrow.  

When a Seller short sales, all parties to the transaction have to sign a short sale affidavit, and "Arm's Length Transaction" which is required to be signed notarized by all parties. This document indicates that the Seller is not receiving any financial benefit beyond what is indicated on the final settlement statement.  Meaning, if the short selling bank does not offer incentive, she will receive no money from anyone.  they will not allow credits from Buyers on the settlement statement, as if money is left on the table, the short selling bank wants that money.  Escrow officer, Brokers, and principals to the transaction have to sign.  It would not only be bank fraud if you have an agreement to give her money, you could be defrauding the government (if the loan is backed by the government).  Do not get involved. Here is an example of a short sale affidavit from Wells Fargo.  Many other institutions affidavits are similar. https://reo.wellsfargo.com/docs/Short%20Sale%20Aff...

What she gets out if it, is generally a formal notice from the bank indicating they will not pursue the defaulting borrower for the amount deficient.  She gets something in writing indicating they will not require a promissory note to allow the short sale, and she gets something in in writing indicating that that debt will now be considered "settled" by the credit agencies.  Sometimes if they have other liens and judgments against them, that bank will pay those as well to offer clear title.  

Buyers and sellers sign separately in my area. No need to be concerned about it. Even if everyone signs together, there is no reason to be concerned unless one party feels the other has been unreasonable. Most people are happy to sell, the other happy to buy.

If a Seller has an Agent, that Agent is generally enlisted to sell the property for market value.   If you have a specific example, I am happy to help.