I just bought a home through a short sale from BAC and they had already sent 4 auction notices in the last 6 months. In fact, they sent an auction notice after approving the Short Sale as I was in escrow last month.[/quote]
racer76, there is a line of case law which favors the buyer of the trustees deed over a buyer in a (pending) sale. The trustees hired by lenders to sell defaulted trust deeds are highly regulated and must take instructions only from their client lender. In the absence of explicit instructions, they must follow the law. In the absence of communication from the lender, they will proceed with the sale, as is their job.
See Nguyen v. Calhoun (2003) 105 Cal.App.4th 428. (Log into My Findlaw or use Westlaw/Lexis).
Here, the buyer’s new loan funded one day BEFORE Calhoun purchased the defaulted trust deed from the trustee but knowledge of that funding was not properly and timely transmitted to the trustee. The 6th DCA reversed the judgment in favor of Calhoun, the buyer of the trustees deed and the Cal. Supreme court refused to hear the case.
You will note that much of this case law predates cell phones and e-mail but is still good law today for illustration of this point. (The underlying foreclosure of Nguyen’s property took place in 1998.) In those days, trustees would routinely sell the trust deed out from under any “imminent sale” and the law is on the side of the buyer of the trustee’s deed.
There is a HUGE ABYSS between a “short-sale being approved by a (beneficiary)” and the actual funding of that sale. Sans explicit instructions by its (lender) client, a trustee must go forth with the sale.
racer76, congrats on your successful closing of a (clueless RH/LH) problematic “short sale.” 🙂
