HELP: REO with Title Issue

[Sharukh Ahsan]

Hi everyone,

Recently went under contract with a Wells Fargo REO.

Upon title search my attorney has discovered the following:

Previous owners of the house transferred the ownership to their living trust.

The bank foreclosure judgement was against the owners and the trust was not listed in the foreclosure. I guess the foreclosure attorney missed that ownership was transferred to the trust.

Wells Fargo had the property listed on their REO website, had a realtor list it on MLS etc.

My attorney will be contacting the bank's attorney to obtain proof that the trust was also included in the foreclosure.

At this point what should I do?  Technically at the moment the trust still has claim to the property. Has anyone been in the similar situation as this? Worst case scenario will Wells Fargo have to now foreclose on the trust to obtain a clean title?

Thanks for the help