CAN A BANK SELL A HOME THEY DO NOT OWN? Tips and insider secrets revealed.Todays question is regarding foreclosure deeds: "How can a bank sell a home when they did not record the foreclosure deed saying the bank is the owner?"It is common occurance accross the whole country, The situation arises when the bank takes back or buys back the property at the foeeclosure auction. the problem occurs when the foreclosure deed does not get recorded after the bank takes ownership.After the foreclosure auction the bank takes possession of the property if vacant. if occupied they will evict the occupant or offer them a cash for keys agreement to get them out. Once vacant, they take possession and secure the property.Once they have possession, they usually give it to an asset management company to sell. The property is put up for sale, an offer is accepted, the buyer will get a clear to close and the buyer closing attorney will conduct a title search.The problem then is that if that bank has not recorded the foreclosure deed, the new sale can not close until it does. the solution is for the buyer attorney to get the foreclosure deed to record it and then be able to close the new sale to the new home owner. Unfortanately it is common, you can head this off by simply asking the listing agent to check and see if the foreclosure deed has been recorded or to complete a title search on your own. Sometimes they have the deed on file and just need to record it, other times it may cause a weeks delay in closing.UPDATED August 8, 2010AGENTS, BUYERS OR SELLERS PLEASE FEEL FREE TO POST YOUR COMMENTS OR SUGGESTIONS ON THIS HEATED TOPIC.Blog written by:Scott GodzykGodzyk Group RealtyManchester NHAugust 08 2010 - Manchester00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.