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Forclosure Scam goes really bad?

Posted on: 09th Oct, 2009 12:46 pm
My Aunt got involved in a foreclosure scam. To make a long story short and following a prelim title report, the property has been issued a notice of trustee's sale under one person's name (not hers), which also happens to be the person who recently issued a grant deed the property to my Aunt, but is the same person who was never deeded any title to the property in the first place, but got a loan (I know, it is crazy). The foreclosing bank (World Savings)will not talk to my Aunt. If she has the grant deed, what will the foreclosure sale accomplish? Can World really "assume" the property, when the title is so messed up? How do you stop a "sale" if the bank doesnt talk to you, who can she contact? What would a real estate lawyer do to stop the sale, so things can be worked out?
This is really complicated and you will need to get an attorney
Posted on: 09th Oct, 2009 06:32 pm
Hi Guest,

You mean the person, who gave your aunt the property through grant deed, does not have any legal right to the property and yet he got a loan on this property. Now that the loan is in default, the lender is coming after the property to foreclose it. The notice of trustee's sale is not in your aunt's name, which means she is not on the title to the property. Am I right?

If the property indeed has a mortgage lien on it and the borrower has not paid it off, the foreclosure is inevitable. It will not be easy to stop the sale at this point as the trustee sale notice has already been served. The entire matter is quite complicated and you need to take help of an attorney. In case the transfer of property was not valid, you aunt cannot claim any interest in the property and thus has no right to appeal against the foreclosure. However, if she does have certain rights to the property, she can move to court to stop the foreclosure.
Posted on: 09th Oct, 2009 10:27 pm
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