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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Stay the course, deal with bank later. Posted by Ward-CA- on March 11, 2002 at 9:29 PM In Reply to: Bank foreclosed improperly, now owners have filed bancruptcy..where do we stand? posted by Paladia on March 11, 2002 at 10:50 AM : I've been trying to purchase a previously foreclosed property for 3 weeks now, in TN, with great trouble. The house was unfortunately already listed by a realtor, and after much wrestling with the listing agent I made an offer, which was accepted. One day before closing,on the 27th of Feb, the bank (currently owning said property) discovered they hadn't completed foreclosure process correctly-error in the public notice and on deed-and had to do it over again. They were anxious for us to sign an extension on our contract and assured us closure at end of March after public notice ad had run 3 weeks. We signed the extension. : Still not seeing a notice in the county paper, my realtor did some research of her own and discovered the foreclosure process was cancelled on March 1 because previous owner has filed bankruptcy. We considered trying to find the buyer once learning of the foreclosure mistake and buying outright from him...but the bank advised against it and insinuated they would stall if we took that route. : Today they've just told us we can contact the bancruptcy attorney and try to buy it directly from the prev. owner, providing the bancruptcy court approves the sale. The bank knew about the bancruptcy on March 1, yet told us to wait until the end of March for foreclosure completion. I am furious. The bank's closing company made the mistake, causing us serious time loss and inconvenience (family and myself living with parents at present due to closing not going through!), all the while holding onto our earnest money, and they have not been forthcoming with information like this? : What do we do? I've been forced into learing about the foreclosure process due to the variety of stories I'm hearing from the bank, but I'm still quite confused on it. I just want this house-we have had a loan approved and were locked into a mortgage rate. With this stall, we will certainly lose our rate, not to mention looking at longer than the 30 days originally expected of living with my parents in a cramped house! : Do we have any legal recourse against this bank? How long does a bankruptcy take? Can the previous owner use the equity in his house (which he thought he'd lost over 4 months ago in the original foreclosure) to pay some of his debts? This is in TN, by the way. : Any help is great, greatly appreciated. : Thank you, : Paladia =•=•=•=•=•=•=•=•=•=•=•= Paladia, if you just want the house then seeking recourse would be taking you off course. The length of a bankruptcy will vary with the chapter chosen. A Chapter 7 is much quicker than a Chapter 13. I don’t know how the previous owner could get any equity out of the house now that he is in bankruptcy. Another loan seems very improbable and selling it on the open market doesn’t seem feasible if no one thought there was enough equity in it to buy it at the initial foreclosure auction several months ago. At this point the most logical thing to do is stay the course and get the house and deal with the frustrations the bank caused you later. Follow Ups: We have no recourse then? Paladia 7:37 AM, 03/12/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I've been trying to purchase a previously foreclosed property for 3 weeks now, in TN, with great trouble. The house was unfortunately already listed by a realtor, and after much wrestling with the listing agent I made an offer, which was accepted. One day before closing,on the 27th of Feb, the bank (currently owning said property) discovered they hadn't completed foreclosure process correctly-error in the public notice and on deed-and had to do it over again. They were anxious for us to sign an extension on our contract and assured us closure at end of March after public notice ad had run 3 weeks. We signed the extension. : : Still not seeing a notice in the county paper, my realtor did some research of her own and discovered the foreclosure process was cancelled on March 1 because previous owner has filed bankruptcy. We considered trying to find the buyer once learning of the foreclosure mistake and buying outright from him...but the bank advised against it and insinuated they would stall if we took that route. : : Today they've just told us we can contact the bancruptcy attorney and try to buy it directly from the prev. owner, providing the bancruptcy court approves the sale. The bank knew about the bancruptcy on March 1, yet told us to wait until the end of March for foreclosure completion. I am furious. The bank's closing company made the mistake, causing us serious time loss and inconvenience (family and myself living with parents at present due to closing not going through!), all the while holding onto our earnest money, and they have not been forthcoming with information like this? : : What do we do? I've been forced into learing about the foreclosure process due to the variety of stories I'm hearing from the bank, but I'm still quite confused on it. I just want this house-we have had a loan approved and were locked into a mortgage rate. With this stall, we will certainly lose our rate, not to mention looking at longer than the 30 days originally expected of living with my parents in a cramped house! : : Do we have any legal recourse against this bank? How long does a bankruptcy take? Can the previous owner use the equity in his house (which he thought he'd lost over 4 months ago in the original foreclosure) to pay some of his debts? This is in TN, by the way. : : Any help is great, greatly appreciated. : : Thank you, : : Paladia : =•=•=•=•=•=•=•=•=•=•=•= : Paladia, if you just want the house then seeking recourse would be taking you off course. : The length of a bankruptcy will vary with the chapter chosen. A Chapter 7 is much quicker than a Chapter 13. : I don’t know how the previous owner could get any equity out of the house now that he is in bankruptcy. Another loan seems very improbable and selling it on the open market doesn’t seem feasible if no one thought there was enough equity in it to buy it at the initial foreclosure auction several months ago. : At this point the most logical thing to do is stay the course and get the house and deal with the frustrations the bank caused you later. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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