In My Neighborhood in 33983>Question Details

Layle, Home Buyer in 45069

My husband and I contracted to buy a foreclosure in Punta Gorda. The bank had 4 offers on the table but accepted ours with the understanding that we

Asked by Layle, 45069 Sat Feb 5, 2011

would obtain our inspection in 7 days and close in 30 days. It is now 90 days later and we have been unable to close as the bank was not aware of a second mortgage on this property. The second mortgage holder is unwilling to work with the bank so now they have to go back and reforeclose the home. We were told it will be another 3-4 months before we can close. They have offered our ernest money back but I have spent $750 on the inspection and the mortgage appraisal. If we do decide to hang in there, do we have a right to ask for any adjustment to the price or reimbursement for any fees? Thank you.

Help the community by answering this question:


Hi Layle,

Are you buying a "pre-foreclosure" Short Sale? Sorry to ask but some buyers think a Short Sale is the same thing as a property that has actually been foreclosed upon and is now "bank owned". If it is truly bank owned and they failed to notify the 2nd mortgage of the foreclosure they will need to refile the foreclosure action. If it is a Short Sale where the owner (not a bank) still owns it, then there could be other things going on...

With a bank owned....Based on the fact that there were 3 competiting offers on the property you probably have very little negotiating power. If you decide to walk, they'll just sell it for probably the same price (or higher if you got it for a bargain price) to one of those other buyers that missed out the first time.

You can try but I can't offer much hope the asset manager for the bank would consider any concessions for you.

Hope this helps.
0 votes Thank Flag Link Sun Feb 6, 2011
Something doesn't sound right about the seller's explanation (if that's in exactly what they told you). If that bank handled the foreclosure properly the first time, then that second lien (assuming it was recorded) should have been wiped. Even if the second was unrecorded (again assuming the first handled things properly), then a quiet title action should have sufficed.

You could try to ask for a price adjustment, or you could try to find other ways to add more value, but the seller might balk. What are you prepared to do if the seller were to balk?
0 votes Thank Flag Link Sat Feb 5, 2011
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