Re: I think you should move on.

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Re: I think you should move on.
Posted by Kristine-CA on December 26, 2009 at 7:50 AM
In Reply to: Re: I think you should move on. posted by JK (the other JK) on December 25, 2009 at 9:56 PM
JK: thanks for your reply. You helped owners get back their deed by using documentation that shows they had something binding with the lender AND there was no third party AND the bank was going to get paid one way or the other anyway (short sale, loan mod, etc.). Surely you can see that there is a big difference there between those situations and one where the property has already been sold to a third party lender. While no one wants to waste their time in litigation, often if there is a good case, then litigation isn't really necessary. In the OPs case, all it may take is the right letter from an attorney letting the trustee and lender know that they will not back down quietly unless they show how the sale is no longer binding. With certain facts in hand, the OP can then decide if he wants to litigate or not.

: : JK: I'm curious about your experiences on this issue. My reading of the codes show very few valid reasons to rescind a trustee's sale. A "contract" with the homeowner may or may not be binding, but a trustee's sale is binding unless it was held improperly. So a lender asking the trustee to rescind is choosing which case they prefer to be hit by: the borrower saying they had a binding contract or the trustee's sale buyer holding ground that the sale is valid. Agreed, neither is something a lender would do for fun.
: : Since this is an educational forum, please help educate us and tell us how you "helped a few people get their deeds back". Did you assist in getting sales rescinded because the homeowners had binding contracts with the lenders? And if so, what were the terms of such contracts? I think a trustee's sale buyer may have a case in such circumstances. It would be the homeowner/borrowers job to go after the lender to make them whole, not the job of the trustee to rescind the sale. Unless, of course, the lender thinks they can get away with an easy fix like canceling the sale and hoping that the trustee's sale buyer won't object.
:
: :
: : : : Ward,
: : : : I purchased a property at a California trustee sale 2 weeks ago. I did not receive TDUS so I called to check on delay and trustee stated it was being reviewed. I received a call today from attorney for trustee and attorney states sale is being rescinded due to there being an agreement to postpone sale to allow short sale to close.
: : : : The house is vacant and over encumbered. It was a dropped bid purchase. There was no BK filed and no court order to disallow sale. Former owners made no payment to bring loan current.
: : : : Can the investor/foreclosing lender change their mind after the trustee sale and rescind due solely to their statement that an agreement was made with the former homeowner to postpone the sale.
: : : : On the majority of our deals the former homeowner was in a loan mod or short sale and they can always state someone at the bank or trustee office stated the sale would be postponed.
: : : : In this case I fear that investor/lender determined that they could net more money if the short sale closes versus what I paid for the property so the investor/lender wants trustee to rescind sale and allow short sale to close. It seems to put the whole process in questtion if sales can be rescined this easily.
: : : : I know that I have the option to forget it and go to the next one however I'm sick of taking that road as it takes so much work to find a deal in this competitive market. They never call to recind the skinny deals and if I make a mistake I can't rescind the deal.
: : : : Do I need to file a lis pendens in order to protect my firms interest. Do you feel that with the assistance of a good real estate attorney, I will be successful in obtaining the TDUS?
: : : : Thank you.
: : : Banks do not rescind Trustee Sales for the fun of it. Most likely the bank had made a contract with the homeowner. A good example would be notifying the homeowner that they would delay the foreclosure to allow a Short Sale to close or loan modification to be approved and then accidentally selling the property. I just helped a few people get their deeds back for this very reason.
: : : So now you want to sue? What are your damages? Are they not giving back 100% of your money? Are you not an investor that is used to taking risks as part of their business? Instead of wasting valuable energy trying to chase a deal that is gone, why not just find another deal?
: Kristine,
: I've never helped get a Rescission for a homeowner whose property has gone to a third party. Every time it has been an REO. Every time the bank said they would postpone the sale and sold it anyway. For example one of the homeowners I helped get a Rescission for has a letter stating that the bank needed some more documentation and if they did not receive it within 5 days they would proceed with the foreclosure. The bank sold the property within four. It doesn't get any clearer than that.
: I'm not stating that the OP doesn't have a case. I'm stating that in my personal opinion I'd rather get my cash and buy another deal. Perhaps the OP is more comfortable with litigation than I. I hate it and try to avoid it whenever possible. I once fought a homeowner that tried to back out of a deal with me in the early 2000s. After three years of fighting and $50K in legal bills down the drain we both settled. Neither the former homeowner or myself came out ahead. The only ones that prevailed were the attorneys.

Follow Ups:

I think we are all missing the real point. JK (the other JK) 1:17 PM, 12/26/09 (1)

the point Kristine-CA 3:39 PM, 12/26/09 (0)

Post a Followup:

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Comments: : JK: thanks for your reply. You helped owners get back their deed by using documentation that shows they had something binding with the lender AND there was no third party AND the bank was going to get paid one way or the other anyway (short sale, loan mod, etc.). Surely you can see that there is a big difference there between those situations and one where the property has already been sold to a third party lender. While no one wants to waste their time in litigation, often if there is a good case, then litigation isn't really necessary. In the OPs case, all it may take is the right letter from an attorney letting the trustee and lender know that they will not back down quietly unless they show how the sale is no longer binding. With certain facts in hand, the OP can then decide if he wants to litigate or not. : : : : JK: I'm curious about your experiences on this issue. My reading of the codes show very few valid reasons to rescind a trustee's sale. A "contract" with the homeowner may or may not be binding, but a trustee's sale is binding unless it was held improperly. So a lender asking the trustee to rescind is choosing which case they prefer to be hit by: the borrower saying they had a binding contract or the trustee's sale buyer holding ground that the sale is valid. Agreed, neither is something a lender would do for fun. : : : Since this is an educational forum, please help educate us and tell us how you "helped a few people get their deeds back". Did you assist in getting sales rescinded because the homeowners had binding contracts with the lenders? And if so, what were the terms of such contracts? I think a trustee's sale buyer may have a case in such circumstances. It would be the homeowner/borrowers job to go after the lender to make them whole, not the job of the trustee to rescind the sale. Unless, of course, the lender thinks they can get away with an easy fix like canceling the sale and hoping that the trustee's sale buyer won't object. : : : : : : : : : : Ward, : : : : : I purchased a property at a California trustee sale 2 weeks ago. I did not receive TDUS so I called to check on delay and trustee stated it was being reviewed. I received a call today from attorney for trustee and attorney states sale is being rescinded due to there being an agreement to postpone sale to allow short sale to close. : : : : : The house is vacant and over encumbered. It was a dropped bid purchase. There was no BK filed and no court order to disallow sale. Former owners made no payment to bring loan current. : : : : : Can the investor/foreclosing lender change their mind after the trustee sale and rescind due solely to their statement that an agreement was made with the former homeowner to postpone the sale. : : : : : On the majority of our deals the former homeowner was in a loan mod or short sale and they can always state someone at the bank or trustee office stated the sale would be postponed. : : : : : In this case I fear that investor/lender determined that they could net more money if the short sale closes versus what I paid for the property so the investor/lender wants trustee to rescind sale and allow short sale to close. It seems to put the whole process in questtion if sales can be rescined this easily. : : : : : I know that I have the option to forget it and go to the next one however I'm sick of taking that road as it takes so much work to find a deal in this competitive market. They never call to recind the skinny deals and if I make a mistake I can't rescind the deal. : : : : : Do I need to file a lis pendens in order to protect my firms interest. Do you feel that with the assistance of a good real estate attorney, I will be successful in obtaining the TDUS? : : : : : Thank you. : : : : Banks do not rescind Trustee Sales for the fun of it. Most likely the bank had made a contract with the homeowner. A good example would be notifying the homeowner that they would delay the foreclosure to allow a Short Sale to close or loan modification to be approved and then accidentally selling the property. I just helped a few people get their deeds back for this very reason. : : : : So now you want to sue? What are your damages? Are they not giving back 100% of your money? Are you not an investor that is used to taking risks as part of their business? Instead of wasting valuable energy trying to chase a deal that is gone, why not just find another deal? : : Kristine, : : I've never helped get a Rescission for a homeowner whose property has gone to a third party. Every time it has been an REO. Every time the bank said they would postpone the sale and sold it anyway. For example one of the homeowners I helped get a Rescission for has a letter stating that the bank needed some more documentation and if they did not receive it within 5 days they would proceed with the foreclosure. The bank sold the property within four. It doesn't get any clearer than that. : : I'm not stating that the OP doesn't have a case. I'm stating that in my personal opinion I'd rather get my cash and buy another deal. Perhaps the OP is more comfortable with litigation than I. I hate it and try to avoid it whenever possible. I once fought a homeowner that tried to back out of a deal with me in the early 2000s. After three years of fighting and $50K in legal bills down the drain we both settled. Neither the former homeowner or myself came out ahead. The only ones that prevailed were the attorneys.

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