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Tina, Home Buyer in California

How big the chance for bank to win the lawsuit from a former owner of a foreclosure property? they have been evicted and house been sold to me by bank

Asked by Tina, California Mon Apr 9, 2012

I bought this property from BOA as REO in Feb this year and everything went well. Our escrow started mid March, but in late March the bank told us that they got a lawsuit from the former owner, so our original closing date has been extended. I pay them all cash, so no problem from my side to close the escrow. Now the whole thing is like back into air. The title is the bank's, but if it can not be solved with this former owner, the escrow can not go through. I am wondering whether there are people who had similar experience about this. According to my agent, there will be a court hearing between the bank and the former owner soon. Now they extended my closing date to April 30th. Is this date reasonable base on your experiences? If I do not want to wait that long, what should I do in case their suit is going to take forever.

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BEST ANSWER
Hi Tina:

Wow...sooooo sorry for your involvement in this bank's dispute! Luckily, you have not closed escrow yet and have the ability to find another property. Depending on how good the attorney is on the property owners end, and wether or not BOA has all of their necessary documentation in order showing clear title and the chain of ownership, this may or may not be resolved quickly...and there is the possibility that the foreclosure may be reversed, in which case, the house will not sell.

You may want to consider looking for another property in the interim...as much of a hassle as it may seem, have an alternative to this property ready to go.

Good luck! I hope they settle quickly and you are able to close escrow.

All the best,

Kat
0 votes Thank Flag Link Tue Apr 10, 2012
Thank you Kathleen. I am wondering whether it is still possible for me to make offers to others?
Flag Tue Apr 10, 2012
There is no way to know who will win the lawsuit until both sides go to court and present their case. Good Luck.
0 votes Thank Flag Link Sun Apr 15, 2012
Hello buyer april 30th is just an estimate and if they seller was illegal foreclosed it could be reversed. It all depends on you,how badly you want this home and are you willing to wait for the conclusion...good luck

Katherine johnson
Prudential california realty
01205852
0 votes Thank Flag Link Mon Apr 9, 2012
It would be up to you if you want to wait until April 30th. Do you know what's the lawsuit about?

Doug
0 votes Thank Flag Link Mon Apr 9, 2012
I do not know the detail. On the addendum of extension they put it like: Due to lis pendis holding the closing. It is recorded 2/24/2012 that previous owner wanted to secue title in his name. My agent is trying to contact the bank lawyer to find out which day is the court hearing. They should let us know the hearing date, right?
Flag Mon Apr 9, 2012
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