Is this a scam?


Posted by MacyMolly on May 26, 2008 at 07:19:40:


I'm not sure if you can help me with this, but I am involved in a very unusual situation. I am the buyer in this case.

There is a home for sale in FL that I put an offer in on and have a contract on. The transaction has been extremely smooth with expectations to close on May 30th until last week. I am working with a realtor, my lender, and an attorney, and they are all unfamiliar and extremely skeptical about this situation.

The homeowner's lender filed for foreclosure in January of this year, there are quite a few liens on the home, and the outstanding loans are over $360k. I am paying $243k for the home. Well last month in the midst of this foreclosure, the homeowner signed a Warranty of Deed to a Trustee that is now selling the home. This trustee is part of the title company, the same title company that "seller" in the contract insisted on using. (Generally the buyer chooses, I know, but the seller insisted and said they would pay for title work) Also, no where in the title policy does it state that this home is in foreclosure.

My questions are..

Is there a conflict of interest with the title company also being the seller?
Should the paperwork in this sale be the same as if it were a short sale?
Does this sound fraudulent or skeptical?

If you can give me a professional opinion or just a little advice, it would be so greatly appreciated. Nobody I speak to seems to have any familiarity with this situation.

Thank you!


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