Foreclosed on a Wrap Mortgage

[azladyrider]

My question involves a foreclosure in the State of: Arizona

Ok, so this is all really confusing here but.... I bought my former house in Feb of 08, I paid a 3rd party place who then paid the mortgage holder, Well Fargo. This kept my name out of things with WF since my credit was not good with them on another issue that I took BK on years ago. When I sat down and signed all of the papers and gave my large down payment to the realtor and title company I noticed that the name on the loan wasn't who I was buying the house from. (Apparently they had quit claimed it to the sellers that I was dealing with) I got a funky feeling and specifically asked if the sellers OR the mortgage people would have any hindrance on my house? I was told NO by the title place and both realtors. I had a sales agreement and the deed was put into my name at that time. I did extensive remodel work on the house and then lost my job like so many people did and still are. I lived in the home from April 09 until January of 10 without a word, I got served with a sheriffs sale thing and I had the house for sale since October September of 09.

During the time I was waiting on the foreclosure to officially take place I FINALLY got an offer (in November) on the house that, if the bank and foreclosure lawyer would have worked with me on reducing some of the fees and filings I would have been able to pay the house off in FULL and still walk away with a little bit of money to start a new life with. I tried to call the bank and they refused to speak to me about it because my name wasn't on the mortgage but the people who's name was on it were nowhere to be found. I was stuck. I tried talking to the lawyers too and they told me the same thing. I was trying to find someone to work with me on the sales offer but the potential buyers got tired of waiting and found another home to buy. I actually had 3 similar offers all to no avail.

I owed and was willing to pay the total owed of 123,000 on the house and instead was kicked out with a 5 day notice.

I found out later that the home sold in sheriff sale for 60,000. So ..... WTF??? That makes no sense!

The bank cannot come after me for the balance since by their thinking, I had no financial interest in the property.

But my question is this - weren't my rights as the homeowner (since I did have a sales agreement) totally stripped from me with the refusal of the bank and lawyers to work with me? I wasn't asking for a loan modification or anything, I was asking for the right to SELL the stupid thing!!

The bank just pretty much screwed themselves in my mind since they refused my full cash offer then selling it for less then half of what was owed.

Any idea of what I can go after, or who at this point?

This isn't right, it just can't be!

Thanks in advance for any help or advice.

[flyingron]

I'm confused here. It sounds like fraud on your part to me. How did you get title in your name coincident with someone else taking out the mortgage? Almost certainly the bank had the right to invoke a due-on-sale clause if they'd have known about the subterfuge.

You have no "rights" to force the bank to deal with you not being the borrower. Matters little if you were the homeowner. They certainly aren't likely to abort an in-progress foreclosure on the hope of a redemption.

Having been the deeded owner you should have been notified three months before the sale. Why did you wait so long?

You did have the right to sell, but they wouldn't release the security (and no buyer would have closed) without the full amount they were owed being remitted.