Before looking at a property, I researched the status of that property because it had appeared as a pre-foreclosure on another site besides the MLS.
I asked the agent an update on that pre-foreclosure. And she said if seller sells at or above list price by next month, the sale will go through because the foreclosure date is not until November 2017. However, there was no mention of this in the confidential remarks. It seems that this should be material fact.
What if an offer is accepted on Sept 21, but the buyer runs into a challenge closing in 30 days, and the escrow continues through November? It would be nerve-wracking for the buyers and their agent to have that foreclosure looming ominously over the deal. If the property is foreclosed before they can close escrow, the buyers will be out of luck with any costs they may have incurred in terms of inspections and appraisal.
Shouldn't that possibility of foreclosure be disclosed?
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