Home Buying in Lake Dallas>Question Details

Mkr0p3r, Home Buyer in Lake Dallas, TX

Can Wells Fargo list a house when it doesn't have a clear title?

Asked by Mkr0p3r, Lake Dallas, TX Thu Nov 17, 2011

We put in an offer to purchase a Wells Fargo REO and it was accepted, but we can't close, because the title is not in Wells Fargo's name. Isn't that fraud?

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More likely an error on their part, comes with the territory when buying an REO. You chose to pursue a train wreck caused by someone else being cleaned up by WF. I am not defending them, they are like any other large lender, overburdened with issues on defaulted mortgages. They thought they had or would soon have clear title. Keep in mind what they are doing has an impact on what you get, you want them to clean up the mess.

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2 votes Thank Flag Link Thu Nov 17, 2011
Title issues can pop up at the last minute on REO's or on your house. Let's say you had an old home equity loan on your house back in 1988 and you never used it and never borrowed money from it. You now get ready to sell and you get a week out from closing and the attorneys do a title search and find that 1988 lien on your property you forgot all about. The bank is closed or gone. You have a problem - did YOU commit fraud? No, it's a technical error. It can be fixed but will take more time.

I love Jim's comment about you perusing a train wreck. That is oh so true with short sales and REO's.
1 vote Thank Flag Link Thu Nov 17, 2011

With no many people not paying their mortgages, it is understandable that mistakes will happen.
If you love the property, work with them as they settle their side of the issues.
I would hardly call this mistake fraud.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
1 vote Thank Flag Link Thu Nov 17, 2011
We also lost thousands on appraisals, surveys and inspections not to mention all the hours we spent getting our loan through underwriting just to find out Wells Fargo NEVER had title according to the Hernando County Court system and despite calls, e-mails and certified letters we have gotten no response or even an apology. We contacted the DPR in Tallahassee and were told they do it all day long and there is nothing we can do about it. Why does the state of Florida allow people to get ripped off this way?
0 votes Thank Flag Link Tue Dec 24, 2013
You should be talking with your Realtor and NOT US.
0 votes Thank Flag Link Sat Jul 13, 2013
They definitely can. Even a homeowner may or may not know if they have 'clear title' when they put a home on the market. The attorney will do a title search before closing, and it is sometimes found at that time.

It is not, in my opinion, fraud, although I am not an attorney.
0 votes Thank Flag Link Thu Nov 17, 2011
Who is listed as the seller on the contract? Is there language in your contract (and there usually is) that states W.F. may not yet have the deed in W.F.'s name? No one here has reviewed your contract so no one here can give you a proper answer. But, even if it was somehow fraudulent, what are you prepared to do about it. Banks seldom play by the rules because they are never held accountable when they don't. If you're not prepared to hire an attorney and spend thousands of dollars in legal fees, then sit back and let things get sorted out or move on to another property. And welcome to the world of foreclosures.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Thu Nov 17, 2011
Few houses have clear title when they are listed.
Most have some kind of liens.....maybe taxes..maybe HOA fees ..and sometimes other liens.

In most cases we can get the liens cleared for you to give the buyer clear title.
That's why you have a title company do the research and provide title insurance against any defects they did not find.
Now this doesn't normally happen until you get a contract and start a search.
So while heartbreaking, frustrating, and probably a whole host of other descriptions.... I would think most people would not consider this fraud.
Believe me they want to sell the house. They want you to have it. However you do not want to buy it if there are liens that cannot be cleared.
I'm so sorry this has happened to you.....
0 votes Thank Flag Link Thu Nov 17, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
Thank you all for the info!
0 votes Thank Flag Link Thu Nov 17, 2011
Many more factors are involved for anyone to render a professional opinion. All documents need to be reviewed HOWEVER banks play by the law

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Thu Nov 17, 2011
Wells Fargo, Bank of America and Chase can do whatever they please. Certainly you have been reading the newspapers. These stories are not fabrications of an idle mind. They are true transgressions. Active duty soldiers foreclosed in direct conflict of federal law. Seniors foreclosed for making mortgage payment EARLY! The only times for which the consumer has been able to alter the will of the banks is by getting the TV cameras in the face of the branch manager.
What's your options? Call your local TV outlet.

Too big to fail equals to big to govern. Welcome to the 99%
0 votes Thank Flag Link Thu Nov 17, 2011
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