Help bought a foreclosure

9 Replies

I recently bought a foreclosure at auction. Paid the deposit required and signed contract with trustee that gave me 30 days to complete payment. It has been 28 days and I went to closing yesterday. My loan officer advised me that the house had been sold back to the bank 4 days ago. She was told that the secondary lein holder held an auction a week prior to the auction where I got the house. I have watched all legals ads and court postings since OCT 08 and i am sure if there was an auction it was not advertised. The funny thing is that the auction held prior to my auction was done by the same trustee company. Anyway a deed has been issued back to Chase bank. Trustee has 14000 of my deposit money and I dont have a house. They are claiming to be working it out but how do you work out that you gave a deed to someone else?? Should I give them time or hire a lawyer? My 30 days is up tomorrow and I'm afraid I will lose my money because of that contract I signed giving 30 days. ANY thoughts??

FIle a court claim right away just to get paperwork in the courthouse. Then chat with a lawyer.

You need to speak to a competent real estate attorney TODAY! Properties auctioned at foreclosure get screwed up more often than you might imagine. It's unclear from your post which bank got the deed - the once holding the first or second? How much did they pay for the property at the first auction?
Should you give "who" time to hire a lawyer? The Trustee? Who is the trustee? A government official, a bank, a title agency, an individual?

This sounds like a real mess. I would talk to YOUR real estate attorney today!

Good Luck,


I echo what has already been said.....Get a "Real Estate" Attorney right away, as it looks like you have little time to spare.

Unfortunately, nobody in a forum can really help you with something this serious, time sensitive, and as complex a legal matter as this might be.

Good Luck!

Let me echo the sentiment of the others . . . Time is of the Essence here!

Get off the computer and get on the phone with a competent real estate attorney.

Please do keep us in the loop as to how this plays out. I hope it turns out positive for you.

Best, Josh

Time is of the essence doesn't mean "hurry" or "no time to lose." It actually has nothing to do with that.

When we say time is of the essence, we mean if we agree on a deadline of Tuesday at noon, then Tuesday at noon it is. That time matters and 12:01 is too late. It's not an approximate time or a "about noon" time, it's a real deadline, no exceptions.

Not meaning to be know-it-all, but it comes up in contracts all the time and should be understood.

Sammy, when the 2nd foreclosed and Chase repo'd the property, they became owners, and a week later they lost the property in foreclosure when the first foreclosed and you bought it.

You own it when you became the successful bidder, and there should have been no problem issuing you a deed. Tell the trustee to give you your deed, but don't tell them time is of the essence . . . it's not.

Originally posted by Joe Kaiser:
Time is of the essence doesn't mean "hurry" or "no time to lose." It actually has nothing to do with that.

True enough in contract terms. But I'm quite sure Josh meant "hurry up and call a lawyer."

I agree with Jon, this was a situation to have fire lit under your butt and take action......


Any updates on your situation?

Well, Joe from WA is correct. The bank bid on the secondary mortgage the week before and got the house back (although they did this improperly because they did not notice anyone or place legal ads and honestly I don't even think they held the auction but just made it up and took the house)
I won the bid on the primary lien and thus wiped out the secondary. Chase claims that they could still bid on the house thru the secondary but will choose not to do so. Not sure what they are talking about here. I consulted a couple lawyers and they tell me that I am OK and that even if challenged in the future I would have no problem. What made this situation so tedious was the fact that I was borrowing most of the money from a bank. This was a complex loan for them with many stipulations so i had to keep them happy (so they wouldn't back out on me) and try and meet eh trustee deadline. So everything is fine and I thank you guys for your insight. I do think the bank was trying to make some money here as they held the primary and secondary lein. Don't know why they didnt combine liens at the auction and get full amount back. And the same trustte company holding the auction for the same house in consecutive weeks. There was some shady dealings going on here but its over and I am happy. WV housing market is very stable so there are rarely foreclosures so chaos from volume is not an excuse. Anyway

2 of the foreclosures I bought here in TX(out of maybe 30) were screwed up.
first one- people had paid the amount required day before auction and Trustee wasn't told. I had my cashiers checks back in several days, but no property.
second- homeowner hired an attorney and claimed improper notice(it wasn't). I also had to hire an attorney and file unlawful retainer. Lender offered me a bonus to drop the deal. Resident offered a better deal, all the time while my funds were held up and I was incurring costs. Took several months with delays, $$$$$, and then resident didn't come through or even show up. When they left, house had been pretty well gutted. Bad situation on that one.

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