Expert: Dick Dennis - 2/10/2010

Question
QUESTION: We are buying a REO property in CA and already signed docs, our lender ready to fund the loan but there's one thing we still need: the grant deed which Wells Fargo won't sign for reasons unexplained. The preliminary report on the property said deed was transferred from JPMOrgan Chase to Wells Fargo in 8/09. Our escrow company said the foreclosure deed was first made to Chase, then later to Wells.They said they made the deed transfer as from "Wells to us" but Wells “can't” (note: not won’t) sign it. I ask, why? The county records do say that the property is owned by Wells. I am not sure what the problem exactly is but the speculation is that these records are not right otherwise why else “can’t” Wells sign it? The escrow officer working with us does not give a lot of details and says that the foreclosure deed needs to be re-recorded, that the seller (whoever the real seller is) is working on it at their title curative department, that she calls them everyday for updates (and I believe that) but there’s no answer  from them. On Jan 28, they told us they needed 2 more days. On Feb 3, they were mum, and that’s how it’s been until now.  It is a big mystery who really is the seller. And if that’s the case, why and how did the house get listed in the first place? And why is that so hard to track down? An asset manager has been negotiating with us in our contract, again why don’t they know who the seller is?
I want to know what options I have or course of action I can take. Who's really supposed to handle this issue-the Title company or the seller?  Is there anything we can do to get it moving more quickly? Our docs expire on 2/10/10 and we need the grant deed before then.We don't want to back out of the contract as we want the house and this is our second attempt at buying since we started looking last year.

ANSWER: Most likely a Realtor had the listing on that REO and that Realtor will not get paid unless this transaction goes through. So, find out from the BROKER of that office . . . when you can move in to your new home . . . then sit back and wait for that answer . . . if there is one.

Otherwise, find yourself a good REAL ESTATE attorney to move this log jam. One thing banks do not like, like so many other businesses, is when they have an opposing attorney in the picture. You would have a good case against the bank, the seller (if it is not the bank), the title company, the escrow company, the agent. Boy, the attorney would be frothing at the mouth at all those deep pockets. I do wish you well.

Dick Dennis
California Broker License #00349415
dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Is it possible that if we sue, we would end up not getting the house? My realtor said I can go to small claims and get my money back after paying for additional fees to redraw docs. But that would have to wait until after we get the house for sure. Can an attorney just get the bank to pick up the pace? God knows it's just sitting on someone's desk.
Second how do I find a GOOD real estate attorney?
And Third,can I myself contact the seller? Our realtor and escrow officer I am not to contact the seller but it's so frustrating and what would happen if I did?
Thanks for taking the time to help me.

Answer
The way it's going, Stella, you may not get the house anyway, and if you don't you REALLLLY got a good case against all those parties. The attorney would know exactly who. As for finding the GOOD real estate attorney, you might ask. Ask the local board of Realtors and/or the multiple listing service and find out who they use as their attorney. You can also ask real estate companies who they use or who they would recommend. If you ask enough you will begain to hear a familiar name or two.

The idea is to get the attorney to simply right a letter to the parties involved. Often writing a letter from an attorney dislodges the logjam. Since you would rather get your house than your deposit back, that is why you are looking for a GOOD real estate attorney to simply write that letter rather than going to small claims court. Otherwise, I would have recommended you go to small claims court in the first place.

If it turns out that with the seller delaying the transaction to the point that your lender backs off and you lose the purchase of the house is the court case I am talking about.

Your Realtor and escrow are correct. You're far better off hiring that attorney to get things done. Again, I do wish you well.

Dick Dennis