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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Lawsuits After Sale? Posted by Jk on October 19, 2003 at 6:29 PM In Reply to: Lawsuits After Sale? posted by SeanW on October 17, 2003 at 6:57 PM : Reading these boards for 2 years, I've heard of many pitfalls of subject-to deals involving lawsuits... but never a successful suit after a trustee sale. : It seems logical to me, that if there was serious risk of a lawsuit, it would be a deterrent to bidders coming to the sale. That's not in the lender's interest, or the trustee's. : As a third-party bidder, your primary risk should be the possibility of having your purchase redeemed. : But I'd be interested too in hearing from Ward, if there is any way the ex-owner can successfully sue a 3rd party. Anybody can sue for any reason period!!! I only know of one former owner that was successful. I will not state the investor that bought this home from Trustee Sale, but it involved Washington Mutual. What happened was a former owner worked out a repayment plan at the last minute. The bank told the borrower what the new monthly payment would be, but didn't send it writing. The former owner wrote down the amount due incorrectly by about $20. They then went into a branch and payed the incorrect amount. Washington Mutual checked their books saw that the former owner was off by $20 and sold the property. The former owner sued and a judge reversed the sale. The investor got their funds back after a considerable amount of time, but was not able to recover anything for the loss of time or carrying costs on the cash. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Reading these boards for 2 years, I've heard of many pitfalls of subject-to deals involving lawsuits... but never a successful suit after a trustee sale. : : It seems logical to me, that if there was serious risk of a lawsuit, it would be a deterrent to bidders coming to the sale. That's not in the lender's interest, or the trustee's. : : As a third-party bidder, your primary risk should be the possibility of having your purchase redeemed. : : But I'd be interested too in hearing from Ward, if there is any way the ex-owner can successfully sue a 3rd party. : Anybody can sue for any reason period!!! I only know of one former owner that was successful. I will not state the investor that bought this home from Trustee Sale, but it involved Washington Mutual. What happened was a former owner worked out a repayment plan at the last minute. The bank told the borrower what the new monthly payment would be, but didn't send it writing. The former owner wrote down the amount due incorrectly by about $20. They then went into a branch and payed the incorrect amount. Washington Mutual checked their books saw that the former owner was off by $20 and sold the property. The former owner sued and a judge reversed the sale. The investor got their funds back after a considerable amount of time, but was not able to recover anything for the loss of time or carrying costs on the cash. Optional Link URL: Link Title: Optional Image URL: [ 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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