11th Sep 2010
I get a lot of calls from people who say they’ve been foreclosed on improperly, the house has been sold at auction, and NOW they want to get it back. I got a call the other day from someone after the house had been sold to a third party. The caller alleged that Wells Fargo had done some unscrupulous things in the foreclosure.
Well that’s a little late in the game. For one thing, the house is almost certainly gone at that point. All you can do is sue for damages for lost equity (if any). If you’re underwater anyway, it would appear you have very little recourse.
There are a few good stories, though.
I’m just settling an unlawful detainer here in Sonoma County, California, for instance, where the homeowner has been in arrears for 18 months. The holder of the second foreclosed — even as they were saying they would work on a loan mod — and bought the property on credit at their own auction. Then they filed an eviction action against the homeowner.
We were able to work out a deal that allows him to cure the arrears on the first mortgage and the second within six months and if he can do that, he’ll be reinstated to his property. He’ll need to find private lenders to make it work, but it gives him one more chance to work it out.