Emergency shortsales in Florida

8 Replies

A friend of my sons has just filed a motion to vacate the sale.  Long story, but he lost his mom a few years ago and was in foreclosure when an investor approached him to save their home.  The investor was supposed to by the property via "subject to" and resell it to him in a year when he was in a better position.  Instead, he did a quit claim and gave him a lease to sign???   It was a scam and the home continued to be in foreclosure.  The bank bought the home at the sale and he filed a motion to cancel and has now been advised to file the motion to vacate sale and then do an emergency short sale.  My concern is that the attorney who is advising him is the same one who works with the shady investor...

Hi Lora, if the attorney and investor are working together then I would be a little hesitant about what they’re saying. Florida foreclosure court records are public record. Take a look at the docket and make sure the motions have been filed. Happy to walk you through it, if you want to send me a message. 

In regards to a short sale, the lenders will normally require that the borrower is the one on the deed. If the deed was quit claimed to this scam artist, they are now the owner and would need to be the one to sign any listing agreements or purchase contracts. 

Without more details, it’s hard to say but I do think that if the lender will speak with your friend, he should get on the phone with them and see if he has any options. Then consult with an attorney and see if there are any options to go after the people who scammed him.

@Lora Benard

Yes, unfortunately this is/was a common scam.  But, that has no affect in the ability to “vacate a foreclosure sale”.  Bear in mind, the defendant has only 10 days from the auction to file this and must Show some defect in the foreclosure process.....not “I was victimized” or “I didn’t receive a notice/summons because I moved”, “I want to do a short sale” or “etc,etc,etc.”.  I sincerely doubt he has any valid reason to vacate the sale, I’ve seen multiple people try this and never saw them succeed.

Originally posted by @Alexis Adams :

Hi Lora, if the attorney and investor are working together then I would be a little hesitant about what they’re saying. Florida foreclosure court records are public record. Take a look at the docket and make sure the motions have been filed. Happy to walk you through it, if you want to send me a message. 

In regards to a short sale, the lenders will normally require that the borrower is the one on the deed. If the deed was quit claimed to this scam artist, they are now the owner and would need to be the one to sign any listing agreements or purchase contracts. 

Without more details, it’s hard to say but I do think that if the lender will speak with your friend, he should get on the phone with them and see if he has any options. Then consult with an attorney and see if there are any options to go after the people who scammed him.

Yeah...I don't see that happening. and no, the "new owners" are the bank and even if the foreclosure didn't go through, no way in hell would the bank do a short sale with someone that the property was transferred to.

The borrower was both scamming and scammed based on what I read with the original post. It would be a criminal act to do a lease option or even a leaseback on a short sale if that was not disclosed and, there would NEVER be an approval for a short sale with that disclosure so, if it did happen, the borrower lied. If the borrower lied, it would be a criminal act and while there is no statute that I'm aware of that says it's against the law to do a lease option/lease back, there are statutes that say its against the law to make fraudulent attestations/statements on a loan/short sale to a federally regulated financial intuition. I have a couple of borrowers sitting in prison at this time for the exact same offense.

"subject to and resell it to him in a year", would be exactly a Quite Claim to the investor and the prior owner signing a lease.  Signing over the house alone enables most lenders to immediately initiate a foreclosure.  They waited a little too long to decide what should have been done from the begining which was probably a short sale.