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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 32939
Experience:  Began practicing law in 1992
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Kids "bought" a house on a short sale. Loan was preapproved

Customer Question

Kids "bought" a house on a short sale. Loan was preapproved back in June. August, they hadn't closed, but two realtors said it was a for sure go, just needed to clear up a couple things...move in this weekend, close on Monday. They did. Now it's January, they're in the house, they've done a bunch of work on it...invested a pile in a junk furnace, appliances, general fixes that they needed for loan approval, paint etc.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Wisconsin Now the owners declared bankruptcy and is looking like they aren't going to get it. What do we do?
JA: Has anything been filed or reported?
Customer: No...they just learned about the bankruptcy a few hours ago...as they are sitting there with the furnace repair guy for the third time.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Can't think of anything off hand. We do have all the emails and messages from the realtors stating this was a "go". The realtors split the fee to keep it out of foreclosure, supposedly, so that there would be no hitches, yet here we are.
Submitted: 2 months ago.
Category: Legal
Customer: replied 2 months ago.
I guess I should add that there is still a chance that the kids will own this house, but very likely not for their offer that was accepted. It was in their price range and quite a bit below market value. The house was vacant for two years and had a lot of problems, though. It was an FHA loan, so the kids fixed the problems (as requited by their lender) upon notification that all parties had accepted the offers (their bank contingent on the fixes). They are not only facing homelessness, now, but a loss of quite a bit of money they have sunk into this thing. Their child started school in a new school district, their jobs have been altered based on a new location. And now they may well get kicked out. Every time signing was supposed to happen, it was "one more form" or "the seller forgot to XXXX" or "the XXXX has expired after all this time and we need to resubmit it". It was ridiculous. It IS ridiculous.
Expert:  Dwayne B. replied 2 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today.

Expert:  Dwayne B. replied 2 months ago.

Is there a specific question with which I could assist?

Customer: replied 2 months ago.
What do we do? All offers were accepted, the kids were told to move in because closure was happening in days. That was months ago and many thousands of dollars in repairs out of the kids' pockets and still no signing. Moving expenses. Job changes. There were outstanding utility bills they had to pay for the village to reconnect the house. Obviously, the kids do not legally own this house, but they were sure supposed to and were led to believe that they would "in just a couple days" over and over and over and over again. If they lose this place, who pays for all this? Can they fight to keep it for the original terms that were accepted by all parties? They don't want a big revenge suit or anything silly. They just want to keep the house for what was agreed upon and move on with their lives, but if it ends up auctioned or relisted for more money, they can't afford that....
Expert:  Dwayne B. replied 2 months ago.

Yes, they can fight to keep it at the original proce. They will need to hire a lawyer that practices bankruptcy law, they can find one at www.lawyers.com, and ask the court to find that the owners are barred from claiming the protection of the bankruptcy court on this piece of property because of their actions. They may also have a cause of action against the realtors, depending on what the various documents state.