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The topic title pretty much sums up the situation I am in...
I have been looking at properties since April. I've had a few pop up that my offer has been beat on. Around May, I finally found one that my offer was accepted on, so I went ahead and paid to have an inspection done, and then submitted all of the paperwork to go forward with the process along with my earnest money check.
After about a month and a half, almost two months of "we are just waiting on the sellers bank to sign off on the paperwork" I am told by the sellers agent that the seller bank paid the first half of the years taxes, and added that into their payoff amount, so now the sellers are choosing to let the house go to a sheriff's auction to hopefully walk away with more money...
Now, I do not know anything about how this process works (First time home buyer...) but I always thought that once the agreement was signed, and the deposit check was sent, the property is pretty much mine... I've got to say, having this come up definitely has me a little irritated. Not to mention the fact that planned roommate has informed me that if a move in date isn't confirmed by the end of October, he's going to have to back out and find a different place to stay.
The other question I have is, if this whole thing blows up and I end up not getting the house, do I have any way of going after the sellers to try and get the money I paid for the inspection back?
I've never heard of a sherrif's sale happening so quickly. Usually you have to be very far behind on taxes for that to happen, like several years.
I don't think they are saying the Sheriff sale was for taxes but a rather a foreclosure (bank has paid taxes and has signed off on a sale). But I agree, tax sales usually take a few years of delinquency before it gets sold.
I don't think they are saying the Sheriff sale was for taxes but a rather a foreclosure (bank has paid taxes and has signed off on a sale). But I agree, tax sales usually take a few years of delinquency before it gets sold.
That is correct, it was a foreclosure. The bank paid the first half of this years taxes, which the seller was not expecting, so when they saw how much money they would be walking away with after, they decided to give the Sheriff's sale a shot with the hopes that they will walk away with more.
That is correct, it was a foreclosure. The bank paid the first half of this years taxes, which the seller was not expecting, so when they saw how much money they would be walking away with after, they decided to give the Sheriff's sale a shot with the hopes that they will walk away with more.
It sounds like they fall in the "not too bright" category.
I think there's some things we don't know here. Did you make an offer knowing there was this kind of delinquency? Where I am that kind of think is suppose to be disclosed when the offer is made. There is a specific form for disclosing that the house is in the process of being foreclosed on, another for short sale or REO etc. There are risks with all of those. Is this the very first you've known about any of it?
Unfortunately, the OP's contact is secondary to all the players here. Even if you could find the new owner, they probably have their own game plan and probably will not honor your contract, they don't have to, they are not party to it (in most cases). I had a buyer in the exact same position in July, waiting for short sale approval and the home was auctioned off at the courthouse steps. My guy had home inspections (2) and an appraisal - almost $1500. He had tenants all lined up to move into his current home. He found the new owner and made an excellent offer, but still well below appraised value. We closed two weeks after the new seller was identified. The most labor intensive part was getting the deed of FC filed, so the sheriff's sale could be recorded and then get title insurance for our closing. Not for the faint of heart.
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