Ok, here's the story...
I am in the process of buying a property in NJ which is a short sale. At the time the offer was submitted. The loan was owned by Wells Fargo. I received the short sale approval on Friday, July 20th. I immediately started my inspections and getting my financing in order.
When the title search was done, it showed Citi as the holder of the lien. After some further investigation, we found that Wells sold the loan to Citi on July 23rd (date on recorded doc).
Now I'm unable to get title insurance because the underwriters are worried we won't be able to get clear title.
Has anyone ever experienced anything like this? Does anyone have any contacts at Citi or Wells that could help me out? Any help or insight is much appreciated.
Thanks in advance!
Sometimes bank sell off bulk loans to other banks.
Have you not contacted the asset manager at Wells to see what happened??
Usually if you have an approved short sale they will hold that loan out.I have been told before though on commercial deals before that it has to close by a certain time or the loan might be sold off.
Are you sure Wells Fargo is just not the servicer on this loan for Citi??
If that is the case they have the authority usually in the servicing agreement to sign docs for them.
We've been in contact with the asset manager at Wells... He's provided us with a letter (email) stating they (Wells) has the right to sell the loan.
However, this hasn't satisfied any of the 3 or 4 title agencies we've contacted.
Wells definitely owned the loan and sold it to Citi, this transaction is recorded (it's public record). But I'm told if there is a servicing agreement between the 2 banks, it's next to impossible to get a hold of that document. Because of the back scratching that takes place between the large banks.
The title agency has said they need either the servicing agreement or a letter from Citi. Citi tells us they have no record of owning the loan and if it was just bought it takes 30-60 days for it show up in their system.
So getting anything from Citi isn't an option and getting the servicing agreement isn't looking too good either.
Any other ideas???
Yikes, sounds like you are stuck right in the middle of 2 big banks.
My biggest concern is now that it has been sold the Citi who is to say THEY will still approve the short sale? They may want to hold it for reasons unknown.
Although if it is a non performing asset I guess it would make sense to move it off their books. How much less are you gettingn it VS what is owed? I would think the larger teh gap the less likey it will be approved..
Good look and I don't envy you one bit!!
Where are you in NJ john??
I'm in Morris County...
As of this morning, we're working on getting the servicing agreement from Wells. Hopefully something comes of it today or tomorrow because we're really starting to run out of time here.
This property doesn't happen to be in Sterling does it??? IF the answer is yes, I will be amazed but at the same time not amazed as I know the LONG history of this house as I was a bidder on it at one point!!
Nah, I don't really venture that far west.
Looks like even if we do find a title policy, this deal is going to get put on ice. We'll need to wait to get an official letter from Citi before we can close and not worry about any other outlying issues.