Foreclosure in Seattle>Question Details

Berryjuice, Other/Just Looking in Seattle, WA

After a house forecloses, does a previous pending purchase contract automatically transfer to the new owner?

Asked by Berryjuice, Seattle, WA Sun Aug 14, 2011

If a home owner signs a contract to sell his home to a buyer but the house forecloses before the sale closes, does the contract automatically transfer to the new owner? Are the new owners and old buyers still bound by the contract?

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Berryjuice’s answer
I signed a contract to buy a condo but the development went into foreclosure. The new owner acquired the development through a trustee sale. Now they want me to follow through on buying the condo or take part of my deposit. They say the previous owner's interests have been assigned to the new owner. Is that possible in a foreclosure case?
0 votes Thank Flag Link Mon Aug 15, 2011
NO,
When a house goes thru FORECLOSURE, everything is wiped out, Liens, Loans, Offers, everything.
0 votes Thank Flag Link Mon Aug 15, 2011
No it does not. Sorry. That would be nice!
0 votes Thank Flag Link Mon Aug 15, 2011
Sorry the answer is NO, when a house is foreclosed on, any contract you had with a previous owner is null and void. You would now have to buy from the bank.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Aug 15, 2011
Absolutely not! The previous owners cannot sell what is no longer theirs. The contract will be null and void. It could be several months before the bank puts the property back on the market, but it will eventually hit the market.
0 votes Thank Flag Link Mon Aug 15, 2011
Ask you agent to watch the new listings daily. Once the deed is recorded in public records, it is possible the bank will re-list the property. Once re-listed you will have another opportunity to present your offer.
0 votes Thank Flag Link Mon Aug 15, 2011
Hi Berryjuice,

No. Since the original seller no longer owns the property, they cannot sell it. The contract is null and void since the original owner is no longer the legal owner of the property. A new contract would have to be written.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Aug 15, 2011
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