We are under a legal contract for a home we are supposed to be closing on in 2 weeks in South New Jersey. We were just notified that the seller's payoff is $50,000.00 higher than the sale price of the home. He doesn't have the money to come to closing table with. He is 2 months behind on the mortgage plus owes in back taxes. What happens to our "so called" Legal and binding contract that has already surpassed attorney reviews on both sides? They are now looking in to a "Short Sale" or possible forclosure on the property. Can this void our contract?
2007-02-04 11:57:29 · 8 answers · asked by Lisa B 1 in Business & Finance ➔ Renting & Real Estate
Run. Put on your Nikes and run.
Your contract is null and void unless they previously told you about the short sale. Non-disclosure of pertinent information nullifies the contract.
As long as your money was placed in an escrow account, it's yours
But if the lender is willing to take your offer in a short sale, you can still have the house. But a friend of mine did this recently with a condo only to discover there were unpaid HOA dues. While he was not responsible for the dues, he wound up paying them to keep a lien from being filed. Moral of the story: you won't know for sure what other problems are there if you puchase in a short sale.
Run.
2007-02-04 12:04:56 · answer #1 · answered by CJKatl 4 · 0⤊ 0⤋
In any case consult your attorney:
Your contract will most likely be voided.
In New Jersey all foreclosure go through a judicial foreclosure. This a judgement ordered by a court in favor of a lender ruling that the real property that secured the debt be sold under the foreclosure proceeding in order to satisfy the debt.
This really does not start if the person has missed 3 consecutive payments.
Short Sale might be the best route if the lender who hold the mortgage agrees to discount the amount owed. But this will usually take place after the foreclosure. Then you still have the problems of the back taxes.
This will void your contract. But consult your attorney for options.
2007-02-04 12:45:22 · answer #2 · answered by daddyavenue 1 · 1⤊ 0⤋
in spite of everything seek for suggestion out of your lawyer: Your settlement will maximum likely be voided. In New Jersey all foreclosures go by a judicial foreclosures. This a judgement ordered with assistance from a court docket in favor of a lender ruling that the authentic property that secured the debt be bought below the foreclosures intending with the intention to fulfill the debt. This really does no longer commence if the guy has neglected 3 consecutive funds. short Sale may be the acceptable direction if the lender who carry the loan has the same opinion to low-priced the quantity owed. yet this can frequently ensue after the foreclosures. then you fairly nevertheless have the themes of the decrease back taxes. this can void your settlement. yet seek for suggestion out of your lawyer for ideas.
2016-11-02 08:21:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Foreclosure could be the best thing that could happen to you.
Contact your attorney first thing tomorrow, but it is possible that you can cure the forecluser (pay past due morgage amounts plus some interest) and take ownership of the foreclosed property.
It might be ok... wait until you can talk to your attorney tomorrow.
2007-02-04 12:10:48 · answer #4 · answered by ValleyR 7 · 0⤊ 0⤋
Yes. If that money isn't paid off on the house that means the title isn't free and clear. You can't purchase a house that money is owed on unless you plan on paying what is owed and paying all his back taxes. Now why would you do that on a house you don't even own?
2007-02-04 12:13:58 · answer #5 · answered by frigginhilarious 5 · 0⤊ 0⤋
contact your attorney and void that contract due to breach of contract, he failed to mention his non payment of mortgage. Then contact his bank and try to purchase from them at your price as they'll want to unload it quickly. You should be able to get it for better price than your current contract, good luck.
2007-02-04 12:05:53 · answer #6 · answered by singledad 7 · 0⤊ 0⤋
Oooh. Chat with an attorney! You may be able to sue this guy for breach of contract and get some $$$ (if he has any assets, lol).
2007-02-04 12:01:02 · answer #7 · answered by Anonymous · 1⤊ 1⤋
Ask your lawyer, not us.
2007-02-04 12:00:20 · answer #8 · answered by Anonymous · 3⤊ 0⤋