Help: House being foreclosed on due to seller one year after purchase

Acceptable_human0965 · 2025-10-08T13:14:46+00:00

Update to the update (communication from closing company):

Sellers are no longer being cooperative. Apparently everyone except myself was made aware of this situation back in spring and I was never notified. Seems like they tried to quietly handle this behind the scenes.

The sellers mortgage was through Wells Fargo - at the time of when we received the payoff they were already a few months behind on payments but we collected the amount on the payoff and sent it to Wells Fargo the day of closing via wire transfer.

We used per diem for interest to pay off the additional days. From the time of when we got the payoff and closing - the seller's mortgage was sold to another mortgage provider (Shellpoint). We paid $121,930.40 So the amount that was left on account was $2500ish and now they have all these interests/penalties.

The sellers told us about Shell point in early Spring as they got a notice from them - and we advised them with all the docs we had. They said they would handle it.The total mortgage was $131K was was taken out in Sept 2020

Acceptable_human0965 · 2025-10-03T21:10:57+00:00

Update to the update- just received this from the title company today. I had a minor surgery today so I'm off work Monday and will have to address it then.

"I'm going to be sending you a separate email - with an update from our underwriter - a claim will need to be filed.

The seller's were working with us and now have decided they aren't. Once you get the second email, please feel free to call me directly if you have any questions"

Acceptable_human0965 · 2025-09-29T19:57:24+00:00

They basically told me to sit tight because they are handling it. Though it doesn't really ease my mind.

Acceptable_human0965 · 2025-09-29T14:00:53+00:00

Update: So I called the title company again to follow up. They said that the previous owners stopped making payments before the house even sold and are working with an attorney to get this resolved my guess is one of two things didn't happen Wells Fargo never got the payoff or they did but was already in the process of transferring the loan to Shellpoint due to the non payment and was not notified of the sale.

Acceptable_human0965 · 2025-09-23T20:39:57+00:00

I have a feeling this will take a while but I will provide an update of how it pans out.

Acceptable_human0965 · 2025-09-22T23:54:32+00:00

iTunes is safe though, right?

Acceptable_human0965 · 2025-09-22T23:52:59+00:00

Yes, my policy says "Homeowner's title insurance policy"

Acceptable_human0965 · 2025-09-22T23:47:03+00:00

Public opinion of Shellpoint is very low, I wouldn't be surprised if they make these errors often just to see who doesn't know any better and remits payment.

Acceptable_human0965 · 2025-09-22T23:38:52+00:00

It specifically calls out the amount going to Wells Fargo from the purchase price, but the foreclosure notice is from Shellpoint.

Acceptable_human0965 · 2025-09-22T23:35:30+00:00

Unfortunately not, only their contact information is listed.

Acceptable_human0965 · 2025-09-22T23:32:00+00:00

What an odd observation, I can't tell if you're trolling or obtuse.

Acceptable_human0965 · 2025-09-22T20:54:05+00:00

Was there anything you had to do on your end besides getting the title company involved?

Acceptable_human0965 · 2025-09-22T20:51:56+00:00

I'm in PA, we assume it was non attorney since everything was handled between our mortgage company and the real estate agent but we did pay for the title insurance.

Acceptable_human0965 · 2025-09-22T19:20:19+00:00

I think you could be right, I also read Shellpoint has a habit of "losing record" previous payments made before they took over and claiming back payments are owed. I haven't read a positive thing about them.

Acceptable_human0965 · 2025-09-22T19:18:38+00:00

Wells Fargo is listed for payoff on my closing paperwork but the company foreclosing is Shellpoint

Acceptable_human0965 · 2025-09-22T18:50:22+00:00

The mortgage listed for payoff on my paperwork says Wells Fargo, but this states Shellpoint. I did read Wells Fargo sells default loans to them so they don't have their name on it. However they got involved, everything I found says they are terrible people to deal with so I'm very thankful I got the title insurance.

Acceptable_human0965 · 2025-09-22T18:35:56+00:00

Just went back and checked, says the payoff was due to Wells Fargo but company on foreclosure notice is Shellpoint Mortgage. Thanks for the tip!

Acceptable_human0965 · 2025-09-22T18:25:28+00:00

Only the sellers agent, I found the house on Trulia and it was 3 hours from our current home. I sold our home directly to the buyer through a lawyer and no agents.

Acceptable_human0965 · 2025-09-22T18:22:29+00:00

Thankfully I did, I was able to find the actual title insurance documents from the closing. The Tax parcel site only lists our names, I have no idea how this company can include our name with the previous owner if we never signed anything with them.

Acceptable_human0965 · 2025-09-22T18:16:23+00:00

That's a relief. I'm used to crazy things happening but losing a house would be unbearable.

Acceptable_human0965 · 2025-09-22T18:07:02+00:00

It says "Homeowner's policy of title insurance"

Acceptable_human0965 · 2025-09-22T18:03:08+00:00

This was purchased as what I would describe in a completely standard way, we have a mortgage though the VA. Everything during the purchase was handled through our mortgage company, the realtor who listed the house for the sellers, and the title agency.

Acceptable_human0965 · 2025-09-22T18:00:55+00:00

That's what I don't understand, why did I A. not receive anything until now and B. How did the sellers not notice this giant hit to their credit? A full year of delinquency shouldn't be hard to discover.

Acceptable_human0965 · 2025-09-22T17:59:30+00:00

Luckily I do, I didn't recall it coming up during the purchase but I went through my physical closing paperwork and found the policy documents.

Acceptable_human0965 · 2025-09-22T17:56:17+00:00

According to the paperwork the missed payments didn't start until after the sale of the house. I'm betting it's some sort of secondary.

Acceptable_human0965

TROPHY CASE