MALIBU, CA – A Wells Fargo executive, Cheronda Guyton, allegedly moved into a $12 Million Wells Fargo REO foreclosure with her husband and two children.  Reports indicate that she even threw a huge party on the last weekend of August in this beachfront foreclosed home.  Guyton supposedly oversees Wells Fargo’s foreclosed commercial properties and it seems this Pacific palace was just too tempting to stay empty.

What’s even more interesting is that Wells Fargo’s residential REO  foreclosure division hired two real estate agents to handle the sale of the property (See 106 Malibu Colony)  but requested the property stay off the market for a while.  Huh?  When pressed for a reason why, Wells Fargo stated that they had some kind of agreement with the prior owner to keep the property off the market for a period of time.

106 malibu colony image 300x200 Bank Exec Parties in $12M REO Foreclosure

Speaking of the previous owners, supposedly, they fell victim to Bernard Madoff investment scam, lost their money and subsequently their gorgeous Mailbu home as well.  Traditionally, homeowners that lose their property to foreclosure relinquish all of their rights to the property, including the ability to “tie up” the property and keep it off the market.  That makes Wells Fargo’s statement that much more puzzling.  How could ”some kind of agreement” hold back the new owner of the property, Wells Fargo, from putting the property on the market?

We have seen in some rare instances where a government backed loan that goes into foreclosure allows the homeowner to stay in the property for a short period of time after the foreclosure.  However, in this case, the previous owners were not in the property.  The occupant appears to be a Wells Fargo executive living it up for a while in paradise for free.

How does it make you feel to know that banks are being bailed out and they are acting this way?  Provide your comments below:

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