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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Trustee sale recission problem Posted by Dennis on January 10, 2010 at 3:42 PM A person I was originally helping with a loan mod with Indymac but would eventually probably become a short sale, was stopped from TS postponement once the George Soros/Michael Dell/One West Bank/FDIC sweetheart deal was put in place. At that point there was no incentive for Indymac to do anything but foreclose as they would be making a profit in doing so. I helped her file BK to postpone TS and after 2 times the judge only granted 15 days to produce the plan. The next TS was scheduled for that day. On that day we filed a request to extend the 15 days and it was stamped by the clerk but needed judge signature. I took the stamped request to the TS and the rep called his office and after some delay they told him to go ahead with the sale.There was no bidding and it reverted to bene. This was 11/12. A few days later an REO agent showed up with cash 4 keys offer of $5k and to be out of the house b4 Christmas. Seeing no alternative she signed the document. A few days later the same agent calls back and says the TS was rescinded due to the BK. Subsequently, we received a copy of the request from the BK court signed by the judge extending until 12/3. I found out the rescission was effective 11/15. In examining title I note that the property had a Trustee's deed transferring to US Bank and recorded on 11/17/2009. It was never granted back to the borrower after rescission of the TS and remains in the name of US Bank. Two weeks ago a different REO agent from another company came forward offering $2500 cash 4 keys and to be out by 1/14. I met with him and told him that since the sale was rescinded title should have gone back in the borrowers name and the lender should have had to schedule a new TS sale date. The agent admitted confusion and said he would email the asset manager about it. Yesterday, he called back saying he can give $5k cash 4 keys and time until the end of the month. I told the borrower to put him off a couple more days because I believe the original TS was invalid because the judge signed the extension of time and the BK was not dismissed until after the original TS was completed. Once the BK was dismissed on 12/3 the lender should have had to reschedule a new TS date. Am I right? If I am right I am really only buying more time for the borrower to stay in the house while possibly giving up $5k or can this lead to a negotiated short sale in anybody's opinion? Sorry for the long post but it is a complicated situation and I would appreciate any expert feedback Follow Ups: You are right... WAY too long... Rick, the Probate Guy 9:50 AM, 01/11/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : A person I was originally helping with a loan mod with Indymac : but would eventually probably become a short sale, was stopped : from TS postponement once the George Soros/Michael Dell/One West : Bank/FDIC sweetheart deal was put in place. At that point there : was no incentive for Indymac to do anything but foreclose as they : would be making a profit in doing so. : I helped her file BK to postpone TS and after 2 times the judge : only granted 15 days to produce the plan. The next TS was : scheduled for that day. On that day we filed a request to extend : the 15 days and it was stamped by the clerk but needed judge : signature. I took the stamped request to the TS and the rep : called his office and after some delay they told him to go ahead : with the sale.There was no bidding and it reverted to bene. This : was 11/12. : A few days later an REO agent showed up with cash 4 keys offer of : $5k and to be out of the house b4 Christmas. Seeing no : alternative she signed the document. : A few days later the same agent calls back and says the TS was : rescinded due to the BK. Subsequently, we received a copy of : the request from the BK court signed by the judge extending until : 12/3. I found out the rescission was effective 11/15. : In examining title I note that the property had a Trustee's deed : transferring to US Bank and recorded on 11/17/2009. It was never granted back : to the borrower after rescission of the TS and remains in the : name of US Bank. : Two weeks ago a different REO agent from another company came : forward offering $2500 cash 4 keys and to be out by 1/14. I met : with him and told him that since the sale was rescinded title : should have gone back in the borrowers name and the lender should : have had to schedule a new TS sale date. The agent admitted : confusion and said he would email the asset manager about it. : Yesterday, he called back saying he can give $5k cash 4 keys and : time until the end of the month. I told the borrower to put him : off a couple more days because I believe the original TS was : invalid because the judge signed the extension of time and the BK : was not dismissed until after the original TS was completed. Once : the BK was dismissed on 12/3 the lender should have had to : reschedule a new TS date. : Am I right? If I am right I am really only buying more time for : the borrower to stay in the house while possibly giving up $5k or : can this lead to a negotiated short sale in anybody's opinion? : Sorry for the long post but it is a complicated situation and I : would appreciate any expert feedback [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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