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Foreclosure WHOA

By
Real Estate Agent with Coldwell Banker Cascade Real Estate

Hmmm... haven't seen this angle yet, though I am sure it is out there.

If you were a buyer and had an offer on a foreclosed property, that was canceled (the sale) by a lender/bank/agency because of the current review. And further the reason for the cancellation was the result of a negligent act by the lender (how do you say robo-signer) you (the buyer) have been harmed.

Let see how much harm? Well the cost of an inspection, apprasial, the appliances you just bought because you needed a refrigerator and washer/dryer (which went with your old house...now closed). Oh yeah your also out on the street or potentially so. Seems like a good attorney, and perhaps a not so good one, could make a pretty good case.

I think the banks documents they had the buyer sign probably provide some protection however the fact the bank apparently committed negligence if not fraud may negate any defense contained in the purchase documents.

Could be interesting.

Perrin Cornell, Broker

Century 21 Exclusively, Wenatchee, WA

Posted by

Perrin Cornell, Broker, ABR

Century 21 Esclusively

135 N. Missin

Wenatchee, WA 98801

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Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

It will happen.  Attorneys are smart enough to figure this out.  Can you say "Class Action"? 

Oct 15, 2010 02:14 AM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

And that is why a lot of REO listings are being pulled. 

Implicit in a listing is the contention that the Seller CAN convey title.

Oct 15, 2010 02:17 AM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Ron... darn I meant to add class action... oh well thansk for picking up on it!

Oct 15, 2010 02:17 AM
Scott Lewis
The Bald Man Group - Post Falls, ID
REALTOR, e-Pro,CIA,IMSD,GRI & CNE

In my experience the "LENDERS ADDENDUM" wraps around the contract and says that they can do just about anything ... and especially ignore your states contract law!

Oct 15, 2010 02:20 AM
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Another great lawyer event has occurred.  If anyone benefits from the foreclosure crisis, it will be lawyers.

Oct 15, 2010 02:22 AM
Jon Elshaug
Sinacore & Associates - Fallbrook, CA
Independent REALTOR 760.390.8396 - USMC (Ret)

Pretend and extend is the name of the game.  This is just another move not to dip into their reserves in order to keep the Fed. happy and the funds longer.

Oct 15, 2010 02:32 AM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Scott, yes you are correct, but I doubt that can hold up against negligence or perhaps civl fraud. I am willing to bnet it will be tested... lot more spurious accusations have been tested (and won).

Mike... we have met the enemy and they is us!

John I really think there is much more to it.

Thanks all for taking part!

Oct 15, 2010 02:43 AM
Geordie Romer
Windermere Real Estate / NCW - Leavenworth, WA
Serving Leavenworth, Lake Wenatchee, and Plain

Does the damage to the buyer exceed the cost of seeking a legal remedy? Probably not.  Big banks have staff attorneys, buyers of foreclosures rarely do.

Oct 29, 2010 04:37 AM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Geordie, I agree.... but that is what "class Action" is built for.

Oct 31, 2010 02:43 AM
Donald Hester
NCW Home Inspections, LLC - Wenatchee, WA
NCW Home Inspections, LLC

Perrin,

That is a real mess in already tough times. It would make you very weary putting an offer on such a property.

Nov 03, 2010 03:08 AM