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The Bank ( Fannie Mae) Cancel Our Contract When Buying A House In Foreclosure

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The Bank ( Fannie Mae) Cancel Our Contract When Buying A House In Foreclosure

Postby Welton » Tue Dec 06, 2016 4:53 pm

Hello. Thanks for this opportunity. This is our situation. We have been looking for almost a year for a house in Weston, Fl. Two months ago we found a house in foreclosure in good conditions. Our realtor made all the arrangements to close the contract for $240,000 and the bank accepted so we signed the contract. Our loan was approved and the only thing missing was the Title Work. We paid almost $700.00 in the appraisal of the house, inspection, an inspection about the land for flood insurance. Two or three weeks ago our realtor told us that she found out that there were legal problems with the Title of the house for some time and it could take a few more weeks to be solve. So, we signed an extension. The extension was until last Thursday. We signed for a second extension. Yesterday they wrote us and told us that the bank cancelled our contract because the legal problem with the title could take longer to solved. We think this is very unfair because we wanted to take the Obama incentive and we lost money. Our question is, why the bank(in this case Fannie Mae) has the right to put in the market a house that has legal problems and cannot be sell. I think is very unfair for customers like us that they do this kind of thing. We lost the $8,000.00 of the Obama incentive, $700.00 or more in inspections and appraisal.  We could look for another property if we knew this before. They told us that we can sue because of breach of contract, but I don't now if that is a good idea. Is this normal? Is this kind of thing happens frequently? How can we be sure for a next time that this won't happen again. Thank's for your counseling.
Welton
 
Posts: 48
Joined: Tue Apr 01, 2014 6:46 pm

The Bank ( Fannie Mae) Cancel Our Contract When Buying A House In Foreclosure

Postby henson55 » Sat Dec 10, 2016 9:31 am

Hello. Thanks for this opportunity. This is our situation. We have been looking for almost a year for a house in Weston, Fl. Two months ago we found a house in foreclosure in good conditions. Our realtor made all the arrangements to close the contract for $240,000 and the bank accepted so we signed the contract. Our loan was approved and the only thing missing was the Title Work. We paid almost $700.00 in the appraisal of the house, inspection, an inspection about the land for flood insurance. Two or three weeks ago our realtor told us that she found out that there were legal problems with the Title of the house for some time and it could take a few more weeks to be solve. So, we signed an extension. The extension was until last Thursday. We signed for a second extension. Yesterday they wrote us and told us that the bank cancelled our contract because the legal problem with the title could take longer to solved. We think this is very unfair because we wanted to take the Obama incentive and we lost money. Our question is, why the bank(in this case Fannie Mae) has the right to put in the market a house that has legal problems and cannot be sell. I think is very unfair for customers like us that they do this kind of thing. We lost the $8,000.00 of the Obama incentive, $700.00 or more in inspections and appraisal.  We could look for another property if we knew this before. They told us that we can sue because of breach of contract, but I don't now if that is a good idea. Is this normal? Is this kind of thing happens frequently? How can we be sure for a next time that this won't happen again. Thank's for your counseling.
henson55
 
Posts: 52
Joined: Sun Feb 17, 2013 1:23 pm

The Bank ( Fannie Mae) Cancel Our Contract When Buying A House In Foreclosure

Postby Corrin » Tue Dec 13, 2016 3:17 pm

Unfortunately when dealing with bank owned properties there are conditions when the bank accepts an offer.  In your case the condition applying is that they be able to give you clear title.  Understand that when they take back a property they do a basic title search.  If it appears to be OK they start the marketing process.

But every once in while something unexpected will come up.  A title flaw that didn't show up in the preliminary search.  Sounds like they tried to resolve it but now think it is going to take an extended period of time to do so.  And they do have the option of canceling in most cases so suing for specific performance is likely NOT an option(not an attorney but have gone through this case myself on a couple occasions over the years.)

This is fairly rare but does happen(maybe 1 in a 100).  Just know the odds are very much in your favor should you make an offer on another bank owned property.  There is nothing you can do on your end to make sure it doesn't happen.  Just know it is very rare.

Now one thing that you might be able to do is ask the lender owner to reimburse you for your hard expenses.  I have seen that successfully done.

Sorry for this situation.  Hate to see it happen.
Corrin
 
Posts: 38
Joined: Thu Jan 16, 2014 9:17 am


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