property was foreclosed while under contract and realtor knew about it?

Question

We were in the process of buying a house the sellers and realtor paperwork all signed .I sold a property for less than market value to purchase this property.The property we were going to buy was then sold on the courthouse steps two weeks before we were to move in.We had a home inspection carried out mortgage all arranged etc. The sellers and realtor were even in the property while the inspection was being carried out
I feel the realtor misrepresented this property and caused us to loose a lot of money and stress for my wife and myself. we were basically homeless for about two months.
Do we have any legal recourse on the Realtor and Seller

Answer 1

Since the Seller didn't complete the contract, you are entitled to you deposit back, but that's about all you should expect.

The foreclosure was a matter of public record. As soon as it starts, the Plaintiff in that case filed a Lis Pendens on the land records. Most states also require it to be published in the newspapers, and a sign posted on the property. What that all adds up to is that you had "constructive notice" of the pending foreclosure, whether you chose to have a title search done right away or not.

I doubt your mortgage was completely arranged, because to be "cleared to close", most lenders require a Title Commitment, which requires a search to be done to look for potential problems exactly like this one.

Another the problem is that Realtors in most states are obligated to the Seller, not to the Buyer. Had they informed you of the foreclosure, you might have offered less. That makes their obligation to disclose such information to you doubtful. The Seller might have had such an obligation, but people who have just had a home foreclosed aren't promising targets for a judgment anyway.

I'm sorry it went badly for you. This is why you want to start the home buying process with an attorney. If you don't have a lawyer on your side in this kind of thing, you're on your own. The Realtor's loyalty is divided between you and the other party and their Broker. The Lender's loyalty is to the Lender, YOU are just a customer. The only person on your side and no one else's in a transaction like this is your attorney.

Answer 2

It's very possible that the Realtor didn't know the house was being foreclosed. The seller would have known and was probably hoping to close before it happened but the seller may not have told the Realtor. If the property was sold on the courthouse steps that sounds like it was sold for back taxes. If a property is sold for back taxes the owner has a certain amount of time to reclaim the property. You could take the seller and Realtor to court and see what happens. If you are only wanting the cost of the home inspection you could probably file against the owner in magistrate court and not have the expense of an attorney. There is a limit on the amount you can sue for when you file in magistrate court so you might want to call your courthouse and find out what that is.

Answer 3

you do no longer choose a greater half to coach properties, surprisingly one devoid of fairness in the relationship. detect a competent criminal expert, and a competent contractor, and pay as you flow. Realtors are a dime a dozen, and on your question, the realtor brings little to the table different than yet another drain on income. once you're severe, a competent realtor gets entangled for the commissions on my own he can earn off you, in spite of everything, that's what they do.

Answer 4

the real estate agent should have disclosed the fact in order to allow you to protect your interest in buying the property esp since you out laid monies

talk to a lawyer and maybe make a complaint with your state Realtor board

Answer 5

Was this YOUR Buyer Agent? It may be that the Seller's agent knew nothing about it. Wenly know what the seller tells us.

Answer 6

Why would you be asking this on Yahoo Answers? GO SEE A LAWYER... AND SOON...