	AllExperts > Foreclosure
	Search

About Steele V. Propp
Expertise
Can answer all questions on all areas of the foreclosure process both judicial and non-judicial. Also on loss mitigation and foreclosure prevention including loan modification, short sales and deed in lieu of foreclosure. Also can assist with questions on purchasing property in foreclosure and already bank owned (REO, Real Estate Owned). Both as an investor and/or a homeowner.

Experience
I have 18 years of working with the foreclosure industry as a Foreclosure Specialist. Currently work with over 20 major lenders as well as a dozen asset management companies. Head up the Bank Owned Property Division of the Schatz Real Estate Group located in Minneapolis, MN. Regularly consult and advise consumers from across the county.

Organizations
I belong to the Realtor Association at the National, State and Local levels. Also the Real Estate Investors Association. The Real Estate Educators Association. As well as number foreclosure industry organizations.

Publications
Consumer Reports, Money magazine, Consumer Digest and many local and national newspapers.

Education/Credentials
Bachelors Degree work in Psycholgy and Economics. Masters Degree work in Counseling Over 15 real estate designations. Specialized study of foreclosures and real estate.

Awards and Honors
Diamond Award from the Certified Residential Specialist (CRS) origanization. Chapter of the Heart as President of the Minnesota CRS Chapter

Past/Present Clients
GMAC Asset Management, First American REO, HomEquity REO, Keystone Asset Management and more.

You are here: Experts > Real Estate > Foreclosure > Foreclosure > Locked out of new home by previous owner's lender

Foreclosure - Locked out of new home by previous owner's lender

Expert: Steele V. Propp - 11/7/2009

Question
I’m a young, first-time homebuyer who closed on the purchase of a townhome three weeks ago (10/13/09). The sale is complete. I received the keys, took possession of the property and the sale is recorded with the county. This week, I was locked out of my new house by the seller’s bank.
The home was a “short sale.” The seller’s lender (Wells Fargo Home Mortgage) approved the purchase price and sent a letter with specific settlement instructions which I have a copy of. My escrow company followed all of the settlement instructions exactly, including sending a cashier’s check overnight. The check was received and signed for by the lender.
I came home on 11/03/09 (three weeks after purchase) and found that my front door lock had been changed. The door knob had been replaced and the dead bolt was missing. The padlock had been removed from my back fence and the back door knob and deadbolt locks had been changed or disabled. There was no notice at my house so I had no idea what had happened to my home. After a sleepless night and many phone calls on 11/04/09, I learned that the locks were ordered to be replaced by Wells Fargo’s Property Preservation Department. I have subsequently learned that Wells Fargo has received the settlement check for the home sale but has not processed it and therefore shows the seller’s loan as open and delinquent and is proceeding with foreclosure—including the lockout. They have an auction date of December 3 (about a month from now).
I have spent the last four days trying to have Wells Fargo correct this. I have not accessed my home in that time.
At first, Wells Fargo was rude and told me there was nothing they could do. Finally, yesterday, after I contacted Wells Fargo legal department and executive management, a couple people from Wells Fargo finally called me to apologize for what they admit was a big error on their side and told me that they had located my new key and would overnight it to my parent’s home. They have still not explained exactly what went wrong or how they will compensate me for my missing locks, being kept out of my house, and the intense personal violation.
My question is two parts:
A) What do I need to do to ensure that Wells Fargo’s lien on my home is removed now? Whose responsibility is this? The seller’s, escrow, or mine?
B) What legal recourse do I have against Wells Fargo? I’m not the type to take advantage of anybody, but this has been a huge stress and inconvenience. I need to have my home returned to its condition before the lockout and need to be completely compensated for not having access to my home.

Answer
Sorry to see this happen to you. Unfortunately I have found that at many of these lenders the right hand doesn't know what the left hand is doing. As these were two separate departments this kind of thing is happening more and more often as short sales become more common.

In answer to you questions, the lien should be removed with the sale. The foreclosure department just didn't know about it due to this lack of communication. But you can double check with the title company that closed the sale just to make sure.

As for damages... I would first put in a reasonable request for compensation stating an amount that you can justify. Hopefully they will just take care of it. Short of that you would have to take them to court and that probably won't be worth it. The one option would be to take them to small claims court. Usually very inexpensive and you can represent yourself. My thought is that they would probably settle with you before going through this at it would cost them more to have someone there than it was worth.

But try the direct approach first. Be agreeable but firm.

Good luck.

Steele

Add to this Answer Ask a Question