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Can a bank CANCEL/NULLIFY a Purchase & Sales agreement on a bank-owned property due to a non-profit org wanting the property?

By
Mortgage and Lending with Seacoast Mortgage Corporation, RI (20021119LB & 20031576LL), MA (MC2107) & CT MLO 10920

Can a bank who owns a property through foreclosure nullify a purchase & sales agreement?  My client/investor has a fully executed Purchase and Sales Agreement: fully signed by the bank.  A non-profit organization who is involved in rehabbing homes using taxpayer money claims they have “first look” privileges and the bank should have accepted their offer which was LOWER than my client’s offer.  The non-profit contacted the bank and now the bank has sent notice to my client his contract will NOT be honored.

 

Just to think my client was going to use HIS own money to rehab the property vs. a non-profit using taxpayer (OUR!) money just makes me ill.  The end result is the same: a rehabbed property.

CAN THE BANK NULLIFY THE CONTRACT?  IS THIS LEGAL?

Posted by

Ann Sabbagh, President

"The BEST compliment is a client referral: Thank YOUUU!"

Seacoast Mortgage Corporation

401-305-6906 or 508-243-1190

Residential & Commercial Financing

MLO10920

RIAR: teacher for "The Mortgage Course"; "Valuation of Commercial/Investment Real Estate"; "Reading Financial Statements"

 

"When you choose me as your mortgage consultant, you also choose a financial planner who cares about YOUR financial strength."

Comments (2)

Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Ann, I believe a bank can do whatever it chooses to do, as that is the way they do business, even though it has an essence of ethical impropriety.

Apr 06, 2012 10:06 AM
James A. Browning
Browning Real Estate School/REO Institute - International, IT
MRE REOCertified(R) SSCertified

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Colorado

Jun 11, 2012 03:55 AM