Auction.com Properties not being foreclosed yet??

Question

Hello BP community,

I'm very confused with the situation that I am currently in with auction.com.

Last month I have won an auction on auction.com, and I have received seller's signed contract. So I thought I am ready to close this deal with escrow.

However, this morning when I reached out to escrow, they said they don't see my property on their files. So immediately I reached out to auction.com closing agent, and she informed me that the property might not have foreclosed yet.

I am so confused. Prior to bidding, I have a title company provided me title insurance commitment stating that this property is owned by Wells Fargo Bank. Now I'm being informed that this property has not completed its foreclosure yet (as the deed has not been recorded).

What is going on? Is this normal? Should I confront my title insurance commitment? or should I leave that hidden and purchase the insurance first before I confront them?

Suggestions/Advices/Experience-Sharings are highly appreciated.

Thanks,

Helen Z

Helen Zhang · Answer

Hi @Wayne Brooks,

Thanks for the feedback. I think the part that I don't fully understand is that... if the foreclosure has not been completed yet, then how did my title agent produces me the preliminary report?

Helen Z

Wayne Brooks · Answer

Sometimes auction.com actually does have an auction for a property that has Not completed foreclosure, and gone back to the foreclosing lender yet.  Sometimes the sale has occurred, and the local gov't has recording delays. You won't be able to purchase your title insurance until the closing.