foreclosure reversal.... is this legal? What to do next?

[tleventer]

Scenario:  for a variety of reasons, you have a home (used last as a rental when you moved out of the area and were unable to sell it) that was foreclosed on.  It took longer than it should have, probably because at that precise time Countrywide was in the midst of being bought by BoA.  Anyway... sherrif's sale happened and final foreclosure took place November 2009.  You did not contest the foreclosure (hell, you tried to do a deed in lieu but Countrywide wouldn't talk to you about it).  You recieved documents from the county court declaring the foreclosure final and that you no longer own the property as of teh November date (court documents were received in March 2010).

Knowing that it woudl take 2 years before anyone would allow you to purchase anything, you enter into a land contract deal set to expire at the end of 2011.  You sign the papers mid July 2010.  And happily look to the future.

1 freakin week after signing the papers, you start getting phone calls from BoA asking about mortgage payments on your (foreclosed) home.  You talk to a variety of people and one of them is a lawyer for BoA.  He tells you that since the loan was originally a VA backed loan, the government has told them they must "try again" -- to go through the entire process.  So they (BoA) have reverted the deed back to your name.

is this even legal???  If you have a court document stating that you no longer own the property, can you tell them to shove off???  Honestly the only issue here is the reset of the foreclosure clock.... if it truly does reset, you're not out of the woods yet and thus that land contract deal may very well go sour because of the whole mess (since you won't be at least 2 years out before it expires!!).  You're getting phone calls from BoA now about twice/month asking about the mortgage payments.  different person each time.  Each time you tell the same story.  Each time the person on the other end seems to "understand" and makes a note.  Each time you keep hoping that that person will suddenly tell you it's ok.

What do you do???

[Lel]

To be completely honest, you're going to have to speak with an experienced real estate lawyer about this.  This is a very complicated and confusing issue, and any advice that you get here is not going to be sufficient to argue your case.

[tleventer]

Thanks.

[Anonymous]

also, generally they are requireing 3 years post foreclosure, not 2.

[Coreyswife4ever]

I wonder if there was a balance left after the house was foreclosed.  If your house was auctioned off and they didn't pay the amount owed on the house then you'll be stuck with the remaining balance.  That could be why they're calling.

[tleventer]

the house did not sell at the sheriff's sale.  It was "purchased" back via a home loan servicing company that I believe is affiliated with BoA.  I checked the county records and confused on it as well.  it IS listed in his name.  However, when you look at the previous sale data, you can see where he purchased it several years ago (a column named Validity states "valid").... where it was "purchased" from him by the home loan servicing company (validity = "foreclosure") and where it was put back in his name from the home loan servicing company (validity = "invalid").  I have an email in to the county asking exactly what that means.  I also have an email in to a local real estate attorney and will hopefully get their take.  I just can't fathom how it all can be remotely legal -- it was a done deal.  Uncontested.... don't want the property back (it's been sitting vacant for about 3 years now and was in rough shape before that).  Have the court decree that the foreclosure was final... how can BoA suddenly decide he owns it again months after the fact? 

If this was part of the foreclosure review that is holding up foreclosures (per waht you hear on the news) AND it hadn't been finalized yet... that I could understand.  but to come back 6 months later and tell us that the court document is no longer valid???  color me confused.