Quoting
kotz
My question involves a foreclosure in the State of: Minnesota
I have a signed purchase agreement on a foreclosed home with no short sale contingencies in the contract.
My realtor just informed me that although I offered the asking price and the sellers accepted, it will end up being a short sale. The sellers are unwilling to pay the difference and the bank apparently just wants the redemption period to end so that they can collect the insurance. The sellers' realtor said that although he's mucked this up completely, he isn't willing to forego his commission, which would amount to the difference between what the sale would generate and what the sellers owe to the bank.
If this weren't a foreclosure, I would simply sue for specific performance of the contract. Is that still a possibility, given that the bank has foreclosed?
Can I sue the sellers' realtor for misrepresentation, or the sellers for fraud? I gather that they took out the second mortgage in order to pay cash on another property, never repaid anything to the bank, and are going to declare bankruptcy and walk away from this entire mess.
I am an attorney, but I don't practice real estate law. Thanks for any ideas.