My mom's house was foreclosed on and the bank states they own it while a 3rd party says they do and showed her a trustee's deed upon sale

Asked by Mariepeach, 95762 Sat Feb 13, 2010

naming them as the owner, who is my mom to believe and the bank is offering her relocation assistance. I think the FC Attorney messed up or something. Please help as my mom is concerned on who to lsiten and does not know when she needs to be out or who to believe.

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9
Ed Favinger, Agent, Folsom, CA
Sat Feb 13, 2010
BEST ANSWER
I know that there is a company offering to give this lady some money to move...

But the question is who owns it... ?

It won't take much time to verify that she's dealing with a "legit" situation. We all know she has to move... but with all the "scams" going on now... no reason not to check is there...?

I hope this helps...

Make it a great day...
1 vote
Ray Calnan, , Los Angeles, CA
Sat Feb 13, 2010
Be careful accepting any money unless you know where it is coming from and what the terms are in taking it.
1 vote
Don Tepper, Agent, Burke, VA
Sat Feb 13, 2010
I agree with Hannah. Regardless of who owns it--and we know it's not your mom--she has to move. Right? It'd make sense to accept the relocation assistance.

She should get some legal assistance, if only to review the relocation assistance agreement.

Hope that helps.
1 vote
Ed Favinger, Agent, Folsom, CA
Sat Feb 13, 2010
It's very easy to find out...

Call up a title company's customer service department and see who they say owns it.

They will do that for free... They would be happy to send you a "chain of title" for the last few years if you asked them.

Here's the phone number for Fidelity National Title's customer service department... (916) 853-7690

I hope this helps...

Make it a great day....!
1 vote
Ray Calnan, , Los Angeles, CA
Sat Feb 13, 2010
I would contact legal aid in your area to find out what the attorney did and is doing.
1 vote
Hannah Flieg…, Agent, Larkspur, CA
Sat Feb 13, 2010
Hi Marie,

Well she needs to move at some point so why not listen to the one who is offering the cash to move? Make sure they do not pay her moving truck. They might put all her belongings in storage and then charge her the money they gave her to buy it out of storage.
I would be happy to send her my e-book about how to return to home ownership if that is her goal. I certainly wish her well.

Good luck!

Hannah Fliegel
The Credit Repair Expert
415-999-9348
1 vote
Bob Georgiou, Agent, Danville, CA
Sun Feb 14, 2010
Mariepeach,

The "bank" is likely undercontract as the loans servicer and paid a fee to administer a mortgage they underwrote and/or originated. The 3rd party is the investor which can run from fannie mae or freddie mac to any number of private institutions nationwide (a hedge fund, a contract holder for a CDO/CMO obligation, an individual).

They use a private title-like system to track this ownership and it is not connected to the public title system we use for title insurance and fee simple ownership rights. There is some legal challenges as to whether or not this is legal and whether or not the rights assigned to these third party investors are valid based on real estate law. These, lets call them obligations, are using federal contracts law to push aside state and local real estate law in order to defend the systems they have put in place to insure mortages from default. Some people feel this is what has crippled owners attempting loan modifications and short sales.

The fact you can not determine who the 3rd party is, is not surprising. As enterprising attorneys with deep pocketed clients begin to chip away at this profitable system (that is made billionaires of some and bankrupted AIG and Lehman Brothers, in the secodary CDO/CMO market), clarity will increase. While this won't help you in the short term, what you might try is to find a real estate attorney informed on the CDO/CMO secondary market and see if your home comes up an a search.
Web Reference:  http://bob2sell.com
0 votes
Keith Manson-…, , Milwaukee, WI
Sun Feb 14, 2010
It looks like you are getting food information. The only thing that I can think is happening if it is all legit, is that the third party is the winning bid but has not completed the payment to the bank throught the confirmation process. Until the bank receives those funds and the funds need to be received in the required time frame the third party will not have ownership.

It does not sound like the foreclosure attorney made a mistake but that the third party bidder may not be following the process. Other things you may want to consider is contact Hud Consultants to see if they can help you and contact the foreclosing attorney to find out the details( maybe even legal aid if they have an attorney with real estate experience)

Good Luck

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Mileaukee


http://milwaukeebailout.com
0 votes
Mariepeach, , 95762
Sat Feb 13, 2010
Thank you everyone for your help. I am going to get the Chain of Title for sure as Ed suggested as I feel it is very importnat to find out who does own it, the bank or the 3rd party. The bank is the one offering the relocation Assist. and I told my mom and stepdad to for sure take it since we all know they have to move no matter who owns it. The main concern of ours is that the bank said they can move out in 45 days and the 3rd party gave them a 3 day notice to quit. We just don't know if mom and stepdad are going to need to leave in 45 days and get the relocation money from the bank or if the rightful owners are the in fact the 3rd party, will they get any money to help move and need to be out sooner than the 45 days they agreed upon with the bank. I know there will have to be an eviction process either way but my mom and stepdad really need the financial assitance and are trying to plan on what to do if they don't get any money and when do then need to be out? Tough situation but with all the advice I can find I will get some answers for them! Thanks again for all your advice everyone.
0 votes
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