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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Trustee Sale from hell! Posted by Reg on December 27, 2007 at 7:00 PM In Reply to: Re: Trustee Sale from hell! posted by The Short Sale Realtor on December 27, 2007 at 1:35 PM : : I recently purchased a Southern Calif home at a trustee sale. Prior to the sale I checked with the service desk of a title company and was assured that there was only one loan showing. After the purchase, I discovered that the loan had been a 2nd TD and that there was a 1st TD for $490k which was recorded with the wrong legal address. The grant deed on the 1st had been corrected but the deed of trust had not, thus the title guy didn't find it. The 1st TD is also in the trustee sale period. : : I employed a high-powered attorney to contact the lender on the 1st TD, Aurora Loan Service, a Lehman Brothers Company. This is the lender from hell. The lender wouldn't talk to anyone not on the original loan. The house was empty at the time of my purchase but I managed to track down the previous owner and convince him that it was in his best interest to have me bring the 1st TD current rather than have a second foreclosure on his record. He faxed an authorization letter to the lender allowing the lender to release the deliquency amount and wiring instructions. The lender still refuses to allow reinstatement and is preceding with a sale tomorrow. The general belief is that lenders don't want to foreclose. I looked this lender up on Rip-Off Report.com and found 95 horror stories dealing with this lender. Do I have any options? : : OK Guys - Let's try and help this guy. I'm sure he realizes he made some mistakes, already! : Reg - If I were in your shoes (G_Forbid) I'd be on the phone w/my 'so called' high power attorney and looking for a way to force the lender to postpone the auction, so you have some time to do whatever damange control you can. Maybe he can file an injuction, or something, instead of just sending a letter... Just the threat of legal action could cause a delay - if you could get the right person to hear about it on this not-so-productive-holiday-time-work-day. : And if you're attorney won't return your calls - make contact quick with Senior Managment at Aurora. Find the main telephone for the corporate headquarters and when you get the switchboard operator ask for The Mailing Address and The Telephone and Fax numbers of the Office of the President. Also ask them for the same information for the General Council (Legal Department). : Then prepare an Urgent Fax with a headline like: : URGENT... : PLEASE POSTPONE TRUSTEE SALE SCHEDULED 12/28/07 : Legal Action Likely if Not Postponed : Give them an vague outline of the situation, Aurora errors are cause of problem, etc. : Be sure to include the Trustee Sale Number, Loan Number, etc., and your telephone number as well. : Let them know of the possibilty of legal action if the sale takes place tomorrow. Copy your attorney. : Just do something quick. Time is of the essence. : If you're able to postpone the sale, then you can post the other information about your property. It may turn out that you'd be better off losing the money you spent on the second, then getting stuck with the property. : If you can't get through to a main switchboard, possible either of these numbers will provide info (but I doubt it.) Customer Service 800-550-0508, Loan Counseling: 800-550-0509 : They have the Bankruptcy Department in Scottsbluff, NE but their servicing deparments are all in Littleton, CO. : Get to work! : Good luck and keep us posted. Thanks Short-Sale My attorney did manage to get the reinstatement amount (over $31k) and the wiring instructions this morning. I wired the money and the default service has acknowledged receipt but the lender still hasn't cancelled the sale yet. I did take your advice and called corporate and got the fax number for legal which I passed through to the attorney. Lessons learned are get a prelim prior to bidding or at least have a title officer review the legal history. Had a title officer noticed the Correction to the Grant Deed that would have been a red flag. Also look at the actual Deed of Trust for the defaulting loan. I've been told that 2nd TDs either state SECOND or have a different format than a Deed of Trust for a 1st TD. Education in real estate can be expensive. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : I recently purchased a Southern Calif home at a trustee sale. Prior to the sale I checked with the service desk of a title company and was assured that there was only one loan showing. After the purchase, I discovered that the loan had been a 2nd TD and that there was a 1st TD for $490k which was recorded with the wrong legal address. The grant deed on the 1st had been corrected but the deed of trust had not, thus the title guy didn't find it. The 1st TD is also in the trustee sale period. : : : I employed a high-powered attorney to contact the lender on the 1st TD, Aurora Loan Service, a Lehman Brothers Company. This is the lender from hell. The lender wouldn't talk to anyone not on the original loan. The house was empty at the time of my purchase but I managed to track down the previous owner and convince him that it was in his best interest to have me bring the 1st TD current rather than have a second foreclosure on his record. He faxed an authorization letter to the lender allowing the lender to release the deliquency amount and wiring instructions. The lender still refuses to allow reinstatement and is preceding with a sale tomorrow. The general belief is that lenders don't want to foreclose. I looked this lender up on Rip-Off Report.com and found 95 horror stories dealing with this lender. Do I have any options? : : : : : OK Guys - Let's try and help this guy. I'm sure he realizes he made some mistakes, already! : : Reg - If I were in your shoes (G_Forbid) I'd be on the phone w/my 'so called' high power attorney and looking for a way to force the lender to postpone the auction, so you have some time to do whatever damange control you can. Maybe he can file an injuction, or something, instead of just sending a letter... Just the threat of legal action could cause a delay - if you could get the right person to hear about it on this not-so-productive-holiday-time-work-day. : : And if you're attorney won't return your calls - make contact quick with Senior Managment at Aurora. Find the main telephone for the corporate headquarters and when you get the switchboard operator ask for The Mailing Address and The Telephone and Fax numbers of the Office of the President. Also ask them for the same information for the General Council (Legal Department). : : Then prepare an Urgent Fax with a headline like: : : URGENT... : : PLEASE POSTPONE TRUSTEE SALE SCHEDULED 12/28/07 : : Legal Action Likely if Not Postponed : : Give them an vague outline of the situation, Aurora errors are cause of problem, etc. : : Be sure to include the Trustee Sale Number, Loan Number, etc., and your telephone number as well. : : Let them know of the possibilty of legal action if the sale takes place tomorrow. Copy your attorney. : : Just do something quick. Time is of the essence. : : If you're able to postpone the sale, then you can post the other information about your property. It may turn out that you'd be better off losing the money you spent on the second, then getting stuck with the property. : : If you can't get through to a main switchboard, possible either of these numbers will provide info (but I doubt it.) Customer Service 800-550-0508, Loan Counseling: 800-550-0509 : : They have the Bankruptcy Department in Scottsbluff, NE but their servicing deparments are all in Littleton, CO. : : Get to work! : : Good luck and keep us posted. : Thanks Short-Sale : My attorney did manage to get the reinstatement amount (over $31k) and the wiring instructions this morning. I wired the money and the default service has acknowledged receipt but the lender still hasn't cancelled the sale yet. I did take your advice and called corporate and got the fax number for legal which I passed through to the attorney. Lessons learned are get a prelim prior to bidding or at least have a title officer review the legal history. Had a title officer noticed the Correction to the Grant Deed that would have been a red flag. Also look at the actual Deed of Trust for the defaulting loan. I've been told that 2nd TDs either state SECOND or have a different format than a Deed of Trust for a 1st TD. Education in real estate can be expensive. [ 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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