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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 33167
Experience:  17 years of legal experience including real estate law.
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I HAVE A CONTRACT ON A BANK OWNED HOUSE AND UPON CLOSING THE

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I HAVE A CONTRACT ON A BANK OWNED HOUSE AND UPON CLOSING THE TOLD ME THERE IS ALETIGATION ON THE HOUSE AND WE HAVE TO WAIT. HOW CAN I FIND WHATS GOING ON AND FOR HOW LONG I HAVE TO WAIT?

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:

Did ownership of the property already pass to you? Who informed you that there was litigation pending with regard to the property? Do you know what issues have been raised in the case or the parties in the suit?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 4 years ago.


I HAVE NOT CLOSED ON THE HOUSE YET, AND I WAS INFORMED THROUGH MY AGENT FROM THE SELLER AGENT AND THEY ARE POSTPONNING THE CLOSING DATE EVERY MONTH FOR THE LAST 3 MONTHS, THE PROBLEM MY WIFE LIKED THAT HOUSE AND WILLING TO WAIT BUT NOT FOREVER

I see. Thank you for clarifying the situation, Kaled.

Since this is a bank-owned property, there is a risk that the closing may be delayed months and in the worst cases, years. The only way to find out what the status of the case is would typically involve retaining a local attorney with access to the court databases to determine the parties and issues involved in the case, so I would look for a local real estate law attorney to do that for you in order to obtain additional information.

You likely agreed to purchase the property "as is", so if you terminate the purchase agreement, the bank may pursue damages against you unless you agreed to a certain closing date (and did not agree to extensions of that date), which the bank has been unable to meet. In that case, you could potentially terminate the contract and not be liable for damages to the bank, but it will depend on the language contained in your purchase agreement.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

Tina

Customer: replied 4 years ago.


ACTUALLY WE ARE EXTENDING THE CLOSING DATE MONTHLY AND BOTH PARTIES ARE SIGNING ON THE EXTENTIONS, AND IN THE LAST ONE THEY SUGGESTED THAT I CAN TERMINATE THE CONTRAC, BUT WILL I GET MY EARNEST MONEY BACK?


 

Hello again,

Since you are terminating through no fault of your own, yes you should receive a refund of your earnest money. However, it is best to review the terms of your contract since it will typically dictate whether you receive a refund under these circumstances. If there is nothing indicating you waive your right to refund of the deposit, then it should typically be refunded to you.
Tina and 2 other Real Estate Law Specialists are ready to help you

Thank you very much for your positive rating of my service. It has been my pleasure to assist you and I hope you will ask for me should a future legal need arise.

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Thanks again and all the best to you.

Tina

Note: Please feel free to request me if you have future legal questions by typing your new question in the question box on my profile page. Here is a link to that page, which you can bookmark or add to your favorites: http://www.justanswer.com/law/expert-tina/. I look forward to hearing from you again should the need arise.

Customer: replied 4 years ago.


THNX

Thank you too, Kaled. Good luck to you.

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