Does a ratified contract on a home protect the buyers if a home goes into foreclosure?
We currently have a ratified contract on a home in WV. We were told that the listing agent was waiting for the seller to bring in a check for the perk test. We then find out that the home was going to foreclosure. We are willing to pay for the perk test ourselves if the seller cannot afford to do this. Does the ratified contract protect us at all in this situation? Will the bank continue with foreclosure proceedings?
No. The bank or lender is under no obligation to halt foreclosure proceedings. Your agent must contact the lender to find out what their intentions are with the home, if any. Do they know there is an accepted offer to purchase contract yet? If your agent can't get to the bottom of this for you immediately then contact the listing agent yourself or the lender directly if possible. Someone dropped the ball and could very well cause you to lose your chance to purchase this home. I can only hope that someone cares enough to give you the answers you need now.
Diane Wheatley, Broker
diane@moveupproperties.com
(909) 815-4499
Miki,
Most probably, you wrote an offer on a short sale, to answer your question, in short sale even if the seller accepts the offer, it is still contingent on lender's approval and if the lender doesnt approve the offer or sellers doesnt agree with lender's terms and condition then the bank has the right to foreclose.
You need to work with your agent so that your agent can check with listing agent and work out something with the lender so that the lender stops the foreclosure....Good luck!
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