Home Buying in 49534>Question Details

Danie, Home Buyer in 49534

i put an offer on a foreclosure it was excepted. And now they find out that part of the land with it was bought on a land contract. i have been

Asked by Danie, 49534 Wed Feb 24, 2010

waiting 3 weeks to find out what is going on. Can the bank cancel my offer even though they already excepted it.

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Most bank addendums state very clearly the bank can back out for any reason and the only recourse the buyer has is to get their earnest money back. That said, the bank is not going to back out unless they have to. They want to unload properties, not keep them. The bank cannot sell you what they don't own. The key will be the legal description on the sheriffs deed vs. the legal on the original mortgage. If they match, and they don't cover the whole 5 acres, then the previous owner will still own the land that the land contract covered and you will only be buying the land covered in the sheriff's deed. If they don't match, then there is an issue with title that the seller's attorney's and title will have to resolve. That process could take a lot of time.
1 vote Thank Flag Link Wed Feb 24, 2010
thanks for all the good advise.... We did not bid on the house because of the 5 acres we love the home enough to take it with the original 2 1/2. Although it would be nice to have the 5. I do know the land contract started sometime in 2002 so you would think there wouldnt be much more to payoff, If the bank is willing to do so.. You would think they would since we offered more than the asking price plus 20% down.
0 votes Thank Flag Link Thu Feb 25, 2010
Hi Danie,

Scott gave you a great answer - I recently sold a home with land (bank owned) only to find out when we ran the title the neighboring home owner owned half way in to the home - yep the neighbor owned half of this homes living room!!!! Just when you think you have seen them all! It took us 5 months to close to get clear and free title. We had to get the neighbor to release that portion, however he had a loan on his home and we had to get his lender to agree to let it go. WOW, what a mess! The question I would ask you is did you want to buy the home because it had 5 acres or do you really love the home (house) as you may be able to work out something with the bank for the house and 2.5 acres............but I agree to look at title first to see what you are dealing with and maybe ask for a survey to see just where the property lines are. I wonder if the owner (bank?) can offer a pay off to the person who has a land contract on the 2.5 acres and wonder if they are legally split at this point. Good luck!
0 votes Thank Flag Link Thu Feb 25, 2010
You might lose the house. It sounds like there is a title issue to be worked out between the corporate owner, the person with the mortage, and the person with the land contract. Corporate owners (aka banks) are challenging to work with. The key to what can happen with your purchase is in the signed contract. If you have the bank addendums to your purchase agreement, read through those. Those are the terms all parties are expected to live by through the purchase.
Another important thing to keep in mind is how banks count time. To you 3 weeks is 21 calendar days. To a bank 3 weeks might be 15 days, if there are no bank holidays in those three weeks. If a bank says to expect an answer in 21 days, it means 21 business days (days the bank is open for business) and that could be 4 weeks and a day counting by calendar days (29 days).
Keep in touch with your REALTOR and be patient in regard to time.
0 votes Thank Flag Link Wed Feb 24, 2010
Your agent can best advise you--it will depend on what the actual land contract stated, especially if there was a provision of default and how it was written to such respect.
0 votes Thank Flag Link Wed Feb 24, 2010
The home was listed with 5 acres when my offer was excepted. A couple days later my agent tells me that 2 1/2 of it was bought buy the previous owner on a land contract, apparently they did not pay it off. My offer was excepted before they found this out. I have been waiting for some answers and Im getting nothing. I am very concerned that i will lose this house. Is that possible even though my offer was already excepted.
0 votes Thank Flag Link Wed Feb 24, 2010
Without knowing all the details--Depends--what does the land contract state--what is your agent suggesting--if you don't have an agent you may wish to consult with an attorney specializing in real estate--most professionals do offer a free consultation.
0 votes Thank Flag Link Wed Feb 24, 2010
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