I got a call this morning from a very sweet but distraught woman about a home in Santa Clara that belonged to her grandmother and was supposed to be a trust sale. However the home is now 2 weeks away from a foreclosure sale and this did not have to happen.
Here is the situation:
1. Grandmother owned the home and took out a reverse mortgage with Wells Fargo.
2. After Grandmother got her reverse mortgage and before she died she put the home in a trust and did not inform Wells Fargo she had done this.
3. Grandmother dies and the successor trustee, grand daughter is in charge of dealing with the house.
4. Granddaughter tells Wells Fargo she is the successor trustee and will be selling the house which is a requirement with in 3 months of the owner passing or leaving the house.
5. Wells Fargo tells Granddaughter they were never informed that the house was in a trust and they
can not speak with Granddaughter because Grandmother never gave them permission and never transferred the reverse mortgage into the trust with their permission.
6. In April Wells Fargo records Notice of Default.
7. Granddaughter calls a lawyer who says he does not know why this happening but does nothing.
8. In July Wells Fargo records Notice of Trustee sale for Aug 13.
9. Granddaughter call me for advice.
10. I tell her to call my lawyer, Rebeccah Miller at Lakin Sprears in Palo Alto to try to get this sorted out.
I have no idea what the legal issues are here with the home being put in a trust without Wells Fargo knowledge. I do know that this sort of issue comes up often and can not be ignored. If you do not act in a timely manner the estate can lose a home to foreclosure. I have written about this before. http://actvra.in/P75
If the home were in Probate then the Probate lawyer could go to a judge for an emergency postponement of foreclosure. I am hoping this can happen in a trust as well. Or maybe they can open a Probate since it looks like maybe the loan/house can not be in the trust and they need to probate it. In that case if someone works quickly enough a judge could stop the foreclosure.
The point I will make again is: IF YOU ARE IN CHARGE OF A HOME OF SOMEONE WHO HAS DIED EITHER AS A PERSONAL REPRESENTATIVE OR A SUCCESSOR TRUSTEE DO NOT PUT YOUR HEAD IN THE SAND. DEAL WITH THE MORTGAGE WHETHER IT IS A TRADITIONAL OR A REVERSE AND MAKE SURE THE HOME DOES NOT GET FORECLOSED BECAUSE SOMEONE, INCLUDING YOUR LAWYER DROPPED THE BALL.
If you have any questions about selling a home in Probate or Trust in Santa Clara or San Mateo County please feel free to contact me.
Marcy Moyer
marcy@marcymoyer.com
DRE 01191194
650-619-9285
Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales
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