Posted by Al Pecherer on February 20, 2007 at 18:39:21:
Sorry for posting about a week after you posted your questions. I am NOT an atty, but an agt licensed in CA.
Your Q’s:
How are Provident Bank, Litton, and Wells Fargo all connected in this;
What was the advantage to them to proceed the way they did, i.e., having Provident foreclose, winning the bid, and then assigning it to Wells Fargo?
And what was Litton’s role in all this?
Responding in reverse order, I don’t see anything in your orig post re: “Litton” so there’s nothing I can say about it.
It sounds to me like your first mortgage remains intact and that good title could not be delivered to a buyer because yours is the senior note to the one that was sold, defaulted, then foreclosed on. This implies that the foreclosure, then sale occurred without Wells having performed a title search which would have disclosed the existence and seniority of YOUR note. That’s borderline unthinkable, why else would Wells NOW be suing you to subordinate?
Have you been sitting all this time without collecting payments? (Odd, but it’s possible, I guess) Did you ever receive a notice of default from the secondary lender? Ordinarily that would have a point where you might have cured the default on the second.
Wells, I would imagine, either wants YOU to buy them out or to force you to sell or subordinate your interest to them so they can deliver good title to somebody.
? Strictly For the Lawyers Here… - Posted by BOB G.
Posted by BOB G. on February 13, 2007 at 18:30:16:
I need help connecting the dots here. Would greatly appreciate some help.
I bought a mortgage note. The note was recorded prior to a note sold to Success Investments of TX. Success then sold the note to Provident Bank. The homeowner went into default. Provident started a foreclosure action. The homeowner filed for bankruptcy protection. Stay was lifted about two years later. Provident completed the foreclosure action and sold the property on the courthouse steps. I was not named in the foreclosure action because my mortgage was senior to the one being foreclosed.
Now here’s the mysterious part. The mortgage loan default was for $80,000. Provident tacked on all arrearages and legal fees. The property was sold at auction by the foreclosure referee for $120,000 (house at the time was worth $160,000) to Provident Bank. Provident’s winning bid was then assigned to : “Wells Fargo Bank Minnesota, National Association, Solely in its Capacity as Trustee, Under the Pooling and Servicing Agreement Dated September 1, 1999, Home Equity Loan Asset Backed Certificates Series 1999-3.”
Wells Fargo listed the property and had an offer on the table for $160,000. The buyer had cash in hand and was ready to close. Three days prior to the scheduled closing, Wells Fargo killed the deal because they “couldn’t deliver good title.”
This exact same Wells Fargo legal entity is now suing me to try to equitably subordinate my mortgage and reforeclose the action to wipe out my mortgage lien, which amounts to $25,000. This doesn’t make sense to me because they could have been paid out in full, and so could I, had then gone through with the sale.
My questions are:
How are Provident Bank, Litton, and Wells Fargo all connected in this;
What was the advantage to them to proceed the way they did, i.e., having Provident foreclose, winning the bid, and then assigning it to Wells Fargo?
And what was Litton’s role in all this?
Tying the three of these guys together would be useful in a motion to dismiss based on RJ or Collateral Estoppel.