Wells Fargo wins back home that sold for $1 in auction
A $126,000 west Manhattan, Kan., townhouse that once sold for $1 in a mortgage foreclosure auction was sold back to Wells Fargo on Jan. 9.
A representative for the bank, which held the mortgage, won the property at 1125 Newfoundland Drive for $105,062.50 during a sheriff sale at the Riley County Courthouse.
After the sale is approved by the court, the bank will likely put the house up for sale to recoup the money it has lost from the defaulted loan.
The bank assessed the mortgage debt to be about $130,000, not including taxes, escrow items and some other expenses.
Riley County Clerk Rich Vargo previously bid $1 for the house at an auction in late 2018 and won as the sole bidder.
The bank disputed the sale, saying the sale price was "substantially inadequate."
Its representing law firm, Overland Park-based Shapiro & Kreisman, did not send a representative to the sale because it believed it had sent notice to officials to cancel the sale and did not think it would still take place.
Garrett Gasper, an attorney for the bank, said at a February 2019 hearing the firm wanted to cancel the sale to have more time to get an appraisal of the property.
A judge overturned the sale at the hearing.