Foreclosure purchase gone bad

[dawn619]

What is the name of your state? TN
We purchased a home at a foreclosure auction on June 28,2006 we received the deed of trust in the mail on July 5,2006...the former owner kept going inside the house, we called the trustee <wilson and associates> who told us we needed to go change the locks that it was our property, but the former owner told us he had paid his fees and back mortgage payments. We then agreed with the former owner not to go into the house or do anything inside the house until everything was straightned out. Apparently he had his attorney call the trustee's office and tell them that he had paid what was owed but hadn't wired the money to them, he did some kind of transfer. The trustee's office called us back on Friday July 7, 2006 and told us the sale had been rescinded, since we took out a home equity loan on our own home to pay for the property which had to be paid for within 24 hours, the attorney at the trustee's office told us that our money would be returned plus interest, plus the fee for the locks that he had told us to go change. he also told us not to file the deed of trust because that would make this more of a mess, Tuesday July 11, 2006 we still had not heard from them about when the money would be sent to us, so we called and he told us that he never received the fax that our bank had sent him,showing the perdium interest that had inccured, so we sent the information again and called him back to make sure he had received all the information and his secretary said he was away from his desk, but she had received everything he needed, and she also told us they would call when the money was being transfered back to our account, we called him back on July 12 and he told us he had to talk to his client <which is washington mutual> to get our funds back. July 13 and 14 we called and he never contacted us. Up to this date July 16, 2006 we have the deed of trust and nothing in writing that he was going to pay our interest, and no money back, meanwhile all this time we are incuring interest on 135,500. We just need advice on what to do...Should we file the deed and take possesion of the property? or keep calling him, and not having our phone calls returned? or hire an attorney to sort out all this mess...Thank you in advance for your time....Dawn

[pojo2]

Not to belittle you but for others coming along this is a prime example ofwhy those who do not know what they are doing when buying foreclosed property should not do it or have an Atty from the word go.

If your state/county has a redeemption period then the owner can pay AFTER the sell and retain ownership to the property.

Should we file the deed and take possesion of the property?

You may indeed create a monster that will cost you much more money out of your pocket in the end.

Since you are in over you head on this and all the paperwork involved consult an Atty versed in real estate and get this mess closed. He/she will be able to find out if indeed the previous owner has redeemed. LEGALLY!

[dawn619]

The previous owner had his right to redemption waived in the original deed of trust as far as the clause that the trustee put on his contract it reads like this
"Any sale conducted today may be set aside at the option of the trustee/mortgagee at any time prior to the delivery of the trustee's/mortgagees's deed. If the sale is set aside any and all money's collected from sale will be refunded to the 3rd party purchaser."
He told us the sale was set aside after we received the deed.

[pojo2]

You need an Atty NOW. We can speculate but without seeing the entire document/s that is all you would be getting.

Good luck.