Home Buying in Jupiter>Question Details

lazzerball, Home Buyer in Jupiter, FL

Can a bank get out of the contract because the title was never cleared?

Asked by lazzerball, Jupiter, FL Sun Jul 8, 2012

Ryan, I have been in the process of buying a bank owned house and it has been over 4 months. We have had the property inspected and appraised and everything went well; the only thing that is holding us up is that the asset manager for the bank won't release the title for the property because the previous owner filed for bankruptcy. How much longer would you existmante it takes to clear the title and can the bank back out because the tittle isn't clean? I though banks have to clear the title before they list the property? Any help would be greatly appreciated.

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Banks often delay closings due to title issues and any contract they enter into is usually very well written to protect them under any scenario. That is why the required bank addendum's are almost always longer and more confusing than the purchase contract. You will have to decide if you want to keep on waiting but assuming you negotiated a great deal 4 months ago and have the time and money invested you probably are better off holding tight.

The market has strengthened considerably over the past 4 months but keep your eyes and ears open for new opportunities as you never are guaranteed anything until you get to the closing table and the keys are released. Just be careful to time everything properly if you do decide to go another route and that you are not contractually obligated to move forward; do not give them an open ended or lengthy delay in any addendum.

Even with the strong market I have had a couple clients very recently land sweet deals on foreclosures at prices I did not think would get them when we made the offers and subsequent highest and best time line. Good deals are out there you just have to watch closely and be prepared to act quickly.

The very best of luck to you and I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.

Always at Your Service,

Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
0 votes Thank Flag Link Mon Jul 9, 2012
Lazzerball, you have brought up a number of legal questions. And... your circumstance is an example of the foreclosure problems in today's market. Without getting myself into "hot water" for giving legal advise, I suggest you find a Real Estate attorney to help guide you through your dilemma. He can explain the situation and tell you what your options are. Check with your Realtor for a referral.
0 votes Thank Flag Link Sun Jul 8, 2012
Whew, I am not a lawyer but I have come accross this problem before. Couple of very important things must be known before anyone can answer without guessing. First is whether the house was put on bankruptcy protection. This is not always the case. Second are the liens against the property, what are protected and which are not. Taxes are usually NOT. What are the liens and when were they submitted. They record in order and aside from taxes, are honored in order.
I don't know the property, circumstances, banks, attys, etc. Are you patient? You can propbably get released if you are not. You do have a contract and a contract has a beginning and an end. If the property is "difficult" the bank may chose not to extend that contract in which case they are in default and you get your downpayement back....The End!
Judith Siller-Levy
Farber & Co
0 votes Thank Flag Link Sun Jul 8, 2012
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