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 foreclosure on the property. Can this void our contract?
2007-02-04 13:01:55 · 4 answers · asked by Lisa B 1 in Business & Finance ➔ Renting & Real Estate
Can and does, you will get our security deposit back and you may need to think of this as a blessing...someone who gets that far behind in their mortgage payment may have also gotten behind on due maintenance and up keep of the home...sorry for you but maybe if you look at it that way it will help...sounds like a mess...goood luck...It's a buyers market...I would start looking, he obviously lied by not disclosing this info...
2007-02-04 13:07:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Short answer: It depends. Foreclosure is a tough business and is affected by state laws. Your contract generally can be held up as long as the lender is willing to do a short sale. Sometimes they make the borrower sign a promissory note so that when you go to the closing table, the lender considers the property transferrable to the new owner (you) because the borrower promised to pay the difference down the road. It is important that you communicate with the seller and make sure this can be arranged; otherwise, you'll have to void the contract or see each other in court.
For more information about foreclosures and proceedings, see the book below.
2007-02-04 15:19:16 · answer #2 · answered by John Rosa 3 · 0⤊ 0⤋
Yes, it can void your contract. Let me guess you're moving to Gloucester County? Mullica Hill or Washington Township? You should have stayed in South Philly...
2007-02-04 13:05:33 · answer #3 · answered by McKenzieT 2 · 0⤊ 0⤋
No it can't. I would suggest going to court.
2007-02-04 13:04:39 · answer #4 · answered by John G 2 · 0⤊ 0⤋