If we are talking a private lable loan (not Fannie or Freddie) then the loan was owned by investors. If it were foreclosed upon by a lender there is much contention as to what rights the lender had in the recovery. They are claiming to be selling and purchasing the property which again is an asset belonging to the investor. Either way it may be held by the bank but subject to investors collateral.
Popular opinion is the lenders comitted a fraud representing they control a property they do not own. Not until the sale is concluded. There is when they actually repurchae the asset. So who then foreclosed on the borrower in a default? And who really had the right to offer and then pull a short sale with offers pending?... more