Couple’s Home For Sale Without Them Knowing
February 18, 2016
A couple in Tampa, Fla., is facing foreclosure even though they have never missed a mortgage payment or did any business with the bank that is trying to foreclose on them.
Read more: What to Know About Title Insurance
Kris and Rebecca Kraft purchased their house in 2013, making an $80,000 down payment. Soon after, they started to suspect something wasn’t right when they began receiving mail from real estate professionals offering to help them fight foreclosure or relocate to another home. One day, they came home to find foreclosure notices taped to their front door and garage. A Nationstar Bank relocation specialist also contacted them wanting them to move them out.
They then discovered – to their surprise – that their house was listed for sale on Zillow.com. The listing description read: “The property is occupied and occupants are not to be disturbed or contacted under any circumstances.”
“Neither of us slept all night long, thinking, ‘What the heck is happening?'” Rebecca Kraft told the local NBC news affiliate. “This is our home. We’ve been paying for this.”
The title to the couple’s home had been transferred to Nationstar Bank in late December, without any notifications sent to the Krafts. The couple says when they discovered what happened they contacted the bank trying to seek answers but were told they were unauthorized to receive information too.
“We do not have a loan with them,” Kris Kraft said. “They won’t even talk to us.”
After some research into public records, the couple discovered a trail of mortgages from the previous owner. The home first sold in 2004 and the buyer took out two mortgages with two different banks. The buyer then lost the home to foreclosure in 2013. The second mortgage holder had foreclosed on the home before the first mortgage holder. The home was then sold to an investor who flipped the home to the Krafts, according to NBC news reports.
The home shouldn’t have been sold because of a “clouded title,” NBC reports. In December 2015, the first mortgage holder – Nationstar Bank – foreclosed on its lien to take the title. Now, Nationstar and the Krafts claim title to the home. The couple did purchase title insurance when they bought the home. The title insurance may cover mortgage costs for the Krafts if they have to give their home back to Nationstar. But right now, the couple sits in limbo as they wait for answers.
“It’s mind blowing that something like this could happen,” Kris Kraft told NBC-8 news.
Source: “Title Problems Threaten to Cause Family to Lose Their South Tampa Home,” WFLA.com (Feb. 16, 2016)
Updated: June 22, 2018