I am in the middle of a very unusual situation. My company gave my borrower an FHA loan for the short sale that we had been negotiating since April 2009 in Oceanside, CA.
Today I get a frantic email from my borrower that closed escrow and recorded January 22nd stating that she gave the key and instructions to the contractor to get into the home to do some work. When the contractor got there they found that the lock was changed and there was a sheet of paper on the window labeled “Notice of Trustee’s Sale”, dated 2/1/2010.
I immediately called the listing agent to find out what was going on. Unfortunately, the agents response was to point the finger at me for not being able to close the loan within the necessary time, 2 weeks, on an FHA loan. They were not able to get an answer from the lender for 9 months and it is my fault that I could not pull a miracle? He still assured me that it was a “typical example of the right hand not knowing what the left hand was doing”. The auction date for this property is 2/26. I sure hope that the recording takes priority over the banks intentions.
Doing my best to console the buyer but this is definitely a first for me. If this has happened to you before please share.
