My question involves real estate located in the State of: Washington
I am in a situation where in the foreclosing loan servicing company sold home on auction in which they held no deed or interest. The home was a HUD home, I purchased it in an online auction, went through all the paper work put in my escrow money only to find out the loan servicing company did not hold the deed. HUD, having insured the loan paid the 'insurance claim' on the loan and took custody of the home almost aa month prior to the auction.
They never had a clear title to the home. This particular LSC has been banned from doing business in three States because of fraud. The contract states that if they do not meet the closing date due to third party they can not be held responsible. However it is not a third party preventing the closing it is the LSC not owning the property at ll. What can I do? It is a HUD home and they are asking $65,000.00 more than the purchase price at auction.