The prior owner used the the equity line, the new owner lost the home.

By
Real Estate Agent with NP Dodge Real Estate

Yes, it happened !

An agent purchased a home and paid cash. The renter called the agent very upset and ask why she was not notified her that the home was sold.  Also news to the agent who owned the home ! 

The new owner wanted to view her purchase.........................

The agent contacted this person to find out what was going on.  She told the agent she purchased the home during a sheriff's sale of property and gave the agent the name of the attorney who handled the sale for the county....it gets better !

The attorney said he had sent out a registered letter (which the agent never got) but is not required to follow up on delivery, just to sent out a letter and had no interest in her dilemma.

After getting attorneys and title companies involved, it turns out the prior owner had a line of credit that was not in use and showed a zero balance when sold. After the sale, the prior owner took out thousands on this line of credit which should have been removed when the home sold.  No payment was made so the home went into foreclosure.  What a mess !

The situation has not yet been resolved so more to follow.  How did this happen ?   good question at this time, they are trying to figure it out but suspect the original lender who held title and line of credt is to blame.  The agent will get the home back but not sure when...

 

 

 

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Ambassador
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Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Billie, wow!  That is one complicated tale of woe!  What a good example of why we need title insurance.

Mar 02, 2010 10:03 PM #1
Rainer
76,189
Scott Gephart
The Atlas Group - Medford, OR
CRS - Medford Real Estate

Also a great example of why only those who really know what they are doing should venture to purchase a home at auction.

Mar 02, 2010 10:12 PM #2
Rainmaker
189,711
Darren Revell
Keller Williams Realty Temecula Valley - Temecula, CA

Interesting.. even with a line of credit at zero balance, there should be a mortgage notice on the title.  If that had happened here, it would be at the fault of the conveyence lawyer.. Let us know what happens next..

Mar 02, 2010 11:11 PM #3
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Billie Atkinson

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