Loan Servicing Company Sold a Home Despite Not Having Clear Title

[ItHappened2Me]

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.

Thanks

[jk]

Demand a refund.

[ItHappened2Me]

I am going to sue them for the difference in price I have to pay to purchase the home from HUD (grossed up) however this is fraud and there should be some criminal element to hold them responsible.

[adjusterjack]

You'll spend thousands in legal fees and they will just close their doors and start another business elsewhere.

Get your money back if you haven't gotten in back yet and move on.

[bcr229]

I am going to sue them for the difference in price I have to pay to purchase the home from HUD (grossed up) however this is fraud and there should be some criminal element to hold them responsible.

Not criminal but if this is the way they regularly do business then the Attorney General's office may already have received complaints about this company. It also costs nothing to file a complaint yourself - https://www.atg.wa.gov/file-complaint

[ItHappened2Me]

I have filed complaints with the Washington State AG Washington State HUD and the IOG. HUD is working with me now to try and purchase the home, they've pulled it from the market and I am now working with their agent to submit an offer. I will still seek recompense for the difference in price against the LSC Ocwen Loan Servicing. My money is still in escrow and they have until the 27th before they are in breech of contract. Sometimes you have to stand up for yourself when no one else will. I will be calling Help Me Haley from our local news and I will make a big stink over it. Its election year folks and I will take full advantage of those resources as well.

[jk]

I have filed complaints with the Washington State AG Washington State HUD and the IOG. HUD is working with me now to try and purchase the home, they've pulled it from the market and I am now working with their agent to submit an offer. I will still seek recompense for the difference in price against the LSC Ocwen Loan Servicing. My money is still in escrow and they have until the 27th before they are in breech of contract. Sometimes you have to stand up for yourself when no one else will. I will be calling Help Me Haley from our local news and I will make a big stink over it. Its election year folks and I will take full advantage of those resources as well.

You are not due the difference in the price you paid and whatever you eventually purchase it for. You are due what you paid at auction and probably an costs associated with that transaction. That is what you are damaged

if the auction company had no legal right to sell the property, the contract is void currently. They don’t have until the 27th or even 27 minutes past 1 today as they could not contract to sell something they had no legal right to sell. The contract would be void now.

[Mr. Knowitall]

If you had a binding, unconditional contract for the purchase (or conditions that did not include the seller's reserving the right to void of the contract in the event of a problem with the title), then you have a potential claim for contract damages, and that could potentially be the difference between the contract price and the reasonable value of the home at the time you entered into the contract. But you will not want to take this on as a do-it-yourself project, and you will want to be reasonably certain that if you put the necessary time and money into a lawsuit that this company will be around when the lawsuit ends, and will have the money to pay you. If this is a fly-by-night outfit, you could find that you ultimately end up with a judgment against an insolvent or dissolved company.

A lawyer can help analyze your situation and advise you about your contract rights, possible causes of action, how much it is likely to cost to litigate the case and the the likelihood of recovery.

[jk]

If you had a binding, unconditional contract for the purchase (or conditions that did not include the seller's reserving the right to void of the contract in the event of a problem with the title), then you have a potential claim for contract damages, and that could potentially be the difference between the contract price and the reasonable value of the home at the time you entered into the contract. But you will not want to take this on as a do-it-yourself project, and you will want to be reasonably certain that if you put the necessary time and money into a lawsuit that this company will be around when the lawsuit ends, and will have the money to pay you. If this is a fly-by-night outfit, you could find that you ultimately end up with a judgment against an insolvent or dissolved company.

A lawyer can help analyze your situation and advise you about your contract rights, possible causes of action, how much it is likely to cost to litigate the case and the the likelihood of recovery.

The loan servicing entity had no valid interest in the home at the time of the auction. In other words, they were selling something they neither owned nor controlled. HUD had paid the debt owed the mortgagee and taken control of the asset one month prior to the ops “purchase”.

Op couldn’t have a binding contract to purchase the home because the seller didn’t have any interest in the home any longer.

Why do you the op have any claim against the loan servicer for anything beyond what they actually paid and possible associated costs?

[budwad]

I will still seek recompense for the difference in price against the LSC Ocwen Loan Servicing.

You will have to get at the end of a very long line of lawsuits against Ocwen. As of April 2017, there were more than 1,000 suits filed against them. The company is a monster.

https://www.courthousenews.com/ocwen...ds-complaints/