Can a bank CANCEL/NULLIFY a Purchase & Sales agreement on a bank-owned property due to a non-profit org wanting the property?
Ann, this does not seem ethical. I am seeing the banks do more and more "out of the ordinary" lately - must be the new trend. I had a property under agreement for several months with a good offer price, the bank foreclosed on it anyway. NO short Sale, No Discussion, just foreclosed, no wonder the country is in trouble, when things like this happen for no rhyme or reason. Why aren't they trying to help the consumer instead of stockpiling foreclosed properties?
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?
Ann Sabbagh, Vice-President
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Seacoast Mortgage Corporation
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Residential & Commercial Financing
MLO10920
RIAR: teacher for "The Mortgage Course"; "Valuation of Commercial/Investment Real Estate"; "Reading Financial Statements"
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