PLEASE HELP!!! Complicating issue…house sold to me with deed in lieu, shouldn’t somebody have notified me?
This is a very complicating situation so I’m going to break it down the best I can:
I purchased a home in Jan 2006. The home was previously purchased from somebody who was going to flip it but never completed. He finished a new HVAC system, a new bathroom, some flooring and so on. He didn’t get to some of the items like the kitchen but needed to sell and I purchased the home.
I had a title company, attorney, agent, etc. We went to closing, and the seller was there to sign paperwork as well. He made a profit of approx. $ 15,000 and was given a check at closing. I was given a no doc loan through countrywide and given the keys. Everything from that day forward was seemingly fine with the mortgage (who is now through Bank of America since they merged).
Now I am trying to sell the property and it is under contract with a closing date at the end of March. I was contacted today that at some point before I purchased the property it was given back to Wells Fargo with a deed in lieu option and Wells Fargo still belives they own the home. I was asked if I knew the property was ever in a forclosure status or if I knew of the deed in lieu. Nobody, may I repeat, nobody mentioned those words to me. Shouldn’t somebody have mentioned any of this? Back when the market was hot, was it easier for this mistake to happen? The seller who flipped the home was able to pay off his mortgage on the home (which was not through Wells Fargo) and walk away with a check at closing…something doesn’t add up. Well now that I am trying to sell this is holding up the process and I don’t know where things are going. I was told my attorney is working on it and I should get answers next week but it could be weeks before this is cleared up.
Anybody know where I stand on this? Is there any legal action I should be taking on my own behalf? My agent who is representing me now said that he checked with my title company and basically he believes they cover all circumstances with the exception of deed in lieu, which my circumstance happens to be. Right now my current attorney is trying to work things out but they don’t have any answers.
Let me clarify…the title company has been notified by my attorney and they said they cover many circumstances but a deed in lieu isn’t covered…that is why I am feeling mislead. They were hired to do a job, didn’t do it, and it so happens they won’t cover this.