A homeowner in Cape Coral Florida funneled $230,000, nearly all of his family's savings, into a home he eventually learned he did not own. The homeowners bought the Cape Coral home from Wells Fargo Bank in November of 2010 and by January, they were living with the possibility that they might be out on the street. That's due to the fact that Wells Fargo didn't own the home when they sold it to the homeowners.
The issue was that a previous owner of the house was foreclosed on during the housing bust in 2007. Wells Fargo was named as the trustee in that foreclosure, which ended with the home being slated for sale at a public auction. The auction never happened and Wells Fargo eventually moved to vacate the sale and set aside the certificate of title, which reverted the ownership of the home back to the previous owner. Wells Fargo didn't communicate its actions with the loan servicer, American Home Mortgage Servicing Inc. The new homeowners purchased the home from American Home, who signed the deed on behalf of Wells Fargo. The Lee County Clerk of Court Charlie Green cites sloppy work and the mass of documentation involved in the mortgage-backed securities market.
Wells Fargo has denied any wrongdoing in the matter because as the trustee, they just rely on the decisions of the servicer in foreclosing on a home. There may be a long road for the new homeowners in order to discover who exactly is responsible for selling them someone else's home. One thing is for certain, the emotional shock and anguish that comes from such a tragic occasion is beyond sizeable.