Robo something or other…
So… my short sale listing finally hit a price point that would cause it to sell (again), so we’re back in business with a new accepted offer. When my seller was in to sign the contract, she brought a letter she received from her lender relating to the transfer of her EMC mortgage to Chase. Somewhere in the body of the letter it said she was in foreclosure. I called Chase to find out why the letter said that. While the seller is behind on her payments, she hasn’t received a notice of default from the bank. I was told by Chase that there was an NOD filed more than a month ago in August and I needed to contact their legal department.
It IS common practice for a lender to proceed with a foreclosure during the short sale, and common practice for the lender to hold off with a new offer on the table. Lately notices haven’t been filed so quickly. What strikes me as more odd than that is that when I ordered an updated title report last week, this notice of default (which should be recorded) didn’t show up. I asked the title department to run the records again and still no notice shows up. Could this be another case of an automated system that doesn’t work? It’ll be interesting to find out what could happen if the lender created the notice of default document but never recorded it and then tried to proceed with a foreclosure. Will keep you posted.
