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  1. #1
    Join Date
    Apr 2009
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    1

    Default Buying a Foreclosure

    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.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Buying a Foreclosure

    Quote Quoting kotz
    View Post
    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.
    It sounds like you where not told the truth. If you where not told it was a short sale and that it was a foreclosure you where lied to. I would sue for specific performance. Just be sure that the realtor KNEW that the home was NOT a foreclosure. The seller could have lied. However, it was the selling agent who took the listing. Either it was listed as REO or as a seller sale.

    Here is a link to MN law;

    http://stopforeclosure.com/Minnesota...losure_Law.htm

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