Home Buying in Taunton>Question Details

Jjcsd, Home Buyer in Taunton, MA

Should I give up or should I sue for selling a house illegally?

Asked by Jjcsd, Taunton, MA Fri Jun 5, 2009

I offered to purchase a home in Taunton end of Jan, I signed the P & S on February 7th with the proposed closing date of March 9th. March 9th came and went, the reason for the delay was because the investor took too long to grant my approval. I did not receive the clear to close until April 29th. I guess there was a new land court decision that went into affect after this stating all foreclosures had to prove that they foreclosed legally. Come to find out, the bank (IndyMac) did NOT legally foreclose on the house I am trying to buy. They confirmed that a document called 'Assignment of Mortgage' did not predate the foreclosure, so now the bank needs to reforeclose. It is now June and the foreclosure is supposed to be done by 1st wk of July and the house has to go up for auction. I am told by the selling realtor to get my deposit back and give up. I still have not requested my deposit back in hopes I'll still be able to buy it. What do you think I should do? Wait it out or sue?

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Barbara Brown’s answer
I understand your frustration, I had a client that offered cash for a home & we were all set to close when the same thing happened. I was ready to get the deposit back & move on. What their lawyer suggested was to look for another home while waiting for the auction so they will have a back up if they lose at the auction. He said there were 3 possibilities: 1) they could get it for cheaper than the P & S they had, at the auction, 2) someone could offer more than what they had a contract for - meaning the bank would sell to higher offer, 3) the bank could buy it back for higher than the price agreed upon - if this happens the lawyer said that the bank must honor the original P&S. It would seem that the only chance of losing is if someone bids higher than what your offer was at the auction. So, if you still want the house, consult your lawyer & see if this senario would be true for you. Just have a back up plan, in case it doesn't work out.

Hope this helps.
1 vote Thank Flag Link Fri Jun 5, 2009
Get your deposit back and go to the auction.
0 votes Thank Flag Link Fri Jun 5, 2009
I would get my deposit back and move on. If you are determined that you still want this house and your confident on your financing committment, make a bid at the auction. Just remember if you are the successful bidder and for some reason you can't get your financing and close within 30 days of the auction, you would most likely lose your deposit. This amount is normally $5,000.00 in a bank check at auction. Best of Luck!!
0 votes Thank Flag Link Fri Jun 5, 2009
I don't believe a lawsuit would have much merit. This whole unfortunate process that you have been through is doing exactly what the system is supposed to do. It is making sure that you are not buying a house that someone would claim as their own in the future. Although it seems that you have gotten the shaft from the process be happy you don't have to go through the headaches later. Banks do make mistakes. Unless there was malice or criminal negligence, I'm not sure there is much you can do. As we are not lawyers, you should talk to a Real Estate attorney of your own.

My advice is to get the money back and be the first bidder. Why let somebody else have control of your money. If it doesn't sell at auction AGAIN, then put in another offer. There are plenty of other reasonably priced homes available in Taunton.
0 votes Thank Flag Link Fri Jun 5, 2009
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