Legal Question in Real Estate Law in Arizona
Trustee Sale
In 2002 my father purchased a house in Arizona. The sellers had both a first mortgage and an equity line of credit open. The settlement agent paid both stipulating to the credit line lender that a reconveyance and satisfaction be recorded and that the account be closed. This did not happen.
In September of 2006 the credit line was assigned to a private mortgage insurer, but the assignment has never been recorded. In November/2006, a reconveyance deed was recorded.
On 5/31/2007, the trustee recorded a notice of sale.
The Title company will not pay the current lien holder until they receive some kind of affidavit of erroneous action from the original lender.
Can the trustee continue with the sale even though they are aware of the recorded reconveyance deed?
18 days remain until the sale is scheduled. What is my 85 year old father's best course of action?
1 Answer from Attorneys
Re: Trustee Sale
Have your father see an attorney immediately!!!! Do not delay. There is very little time.
A suit may be filed requesting a stay of sale. Or he could get relief in the bankruptcy court, with an automatic stay of sale, but would have to file a bankruptcy petition.
I do not understand how a trustee's sale was initiated, since the credit line was paid, because a sale is noticed when payments are in default. All the facts are not apparent from your question, but it does not matter because you cannot get definitive information here on this problem, and you have very little time. Act today to see an attorney.
Good luck.
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