Foreclosure in 02368>Question Details

lynne.marie.…, Home Buyer in Quincy, MA

I bought a town house and when it came time to sign the bank didn't have a deed. Do I have recourse?

Asked by lynne.marie.raymond, Quincy, MA Wed Mar 13, 2013

I had an offer accepted by the banks selling realtor and we had a closing date of the 28th of Feb. On the 28th they asked for an extension and I sign one, their reason was that the deed wasn't clear. On the 8th they wanted another two week extension but then refused to sign it, the reason is that they forclosed illegally and didn't have the deed to the townhouse. I have everything I own boxed, told my landlord I was moving...two different times and now have to stay, had utilities changed twice as well as insurance. Now that they have backed out I lost the other two town houses that I would have put offers in on and now people are raising prices as people are buying now. To get the exact same town house it will now cost me 30 to 50 thousand more. People are telling me that I could have a case if I were to take them to court but I am not sure if I can. Would I have a case against them? I am sure that the bank had to know they didn't have a deed. So could I take them to court..

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How awful! This is why we express to our clients over and over "buyer beware" on all short sales and foreclosures. If possible avoid them. Yes, the market is up in almost every area so I am so sorry to hear to how much money you will lose. Get yourself an attorney asap and figure out what recourse you have. There has to be something. In addition get yourself an exclusive buyer's agent to help educate you on the buying process and protect your interests on the next deal.

Good luck and keep us updated!
Massachusetts Premier Buyer Brokerage
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1 vote Thank Flag Link Wed Mar 20, 2013
We cannot advise you to sue or not. As a non-attorney, I think the bank has the right to cancel the sale at any time for any reason without recourse, but an attorney can give you the facts.

All the best,
0 votes Thank Flag Link Wed Mar 20, 2013
Your attorney and or agent should be able to answer this, but typically in the purchase and sales agreement there is a clause regarding the sellers abilty to deliever a clean title and the options should they not be able to.

Read your agreement, it should be very clear and if not ask your attorney.

Good luck
0 votes Thank Flag Link Wed Mar 13, 2013
I am sorry that you went through this. It is very frustrating to get so far into the home buying process and have things fall apart toward the end. The banks don't like to own property so I sure that if they could have sold it to you they would. It sounds like the title was not insurable. It there are some title issues but the insurance company is willing to provide title insurance the sale will ususally go forward if the buyer is okay with this. Did you get your deposit back? If it was an illegal foreclosure things could have been much worse if you had closed and found out about the problem--that you paid for a house but don't own it legally. Talk to a local real estate attorney to find out what your rights are.
0 votes Thank Flag Link Wed Mar 13, 2013
You'd best speak with an experienced real estate attorney (if you've been this far and close to closing using a mortgage you should already have one unless it's the banks attorney). If you don't have one for one ask friends, family, colleagues for names of a real estate attorney they've used recently. You can also call the Mass Bar Association to ask for a referral for this. Save every document, email, voicemail etc. and have them review the situation.

Hope that helps,
0 votes Thank Flag Link Wed Mar 13, 2013
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