Normally I try and build the story a little bit but today’s situation was so bizarre it’s best to start at the ending:
The lender selling a bank owned home to my buyer doesn’t own the home. Not in a “need to get a deed recorded and work out some paperwork” kind of way. The bank doesn’t own this home because the trustee’s sale was canceled once upon a time. And somehow neither the asset manager nor the lender seemed to notice this detail.
Without going too deep into this, the escrow company knew something was awry but didn’t know the full extent of the situation until today – with loan documents there, with repairs completed, with a buyer ready to move in. Unfortunately, the bit that was known – that there were some irregularities – also weren’t communicated.
No one I’ve spoken to today ever has seen this situation. And it leads to so many tangential questions including this: does the former owner know they’re still on the hook for this home? Almost certainly not, but if something were to happen they’re still the owner on record.
How does something like this happen? I honestly don’t have the slightest idea. There’s nothing unusual about a trustee’s sale being postponed or canceled but for the lender (who I won’t name … but it rhymes with Shmuntytide) to proceed without actually being sure they held title to the property. It truly defies belief.
And so we’re going back to the drawing board to find another home. It can be done. But it shouldn’t have had to be done.
[tags]Phoenix real estate, bank owned homes[/tags]