I am underwater on my current home, not reaffirmed and CH7 discharged about 18 months ago. Anyhoo, I was working to purchase a foreclosed home and walk away from the current home. Obtaining financing is not a issue here.
Fast forward..we are 1 hour before closing and we get a call from the closing agent that we have to postpone the close. Reason given, HUD hasn't completed all their paperwork. Ok, not a big deal...we wait...and wait...2 weeks later we get a call from the closing agent, the review of the paperwork shows the house was not foreclosed on properly and the ownership is still rightly the original owner. These owners moved out in 2008!! So clearly we will not be purchasing this home, but also the previously owners could have stayed a very, very long time.
Makes me wonder how many of these foreclosed homes on the market were actually foreclosed on correctly? It isn't a big deal for us, we are only 40 days past due on our current home right now so we have plenty of time to find another home. However, it also makes me wonder how long I really have before my house is foreclosed on.
Anyhow...I thought I'd throw this out there, as so many are in limbo wondering how long it will take for their own home to foreclose. I suspect banks are treading very carefully right now. Plus, the market is flooded with foreclosed homes and I suspect many of which were not foreclosed on properly and therefore will have problems when it comes to sell them.
Personally I am thrilled this was found out and closing was canceled. The Realtor mentioned that some people have actually closed, then immediately (like that day or the next) started renovations on their newly purchased home...only to have everything unwind when they find out the original owners were not foreclosed on properly...what a legal mess. I could not imagine.
Oh, just before you ask...title search came up clear on this property prior to the scheduled close. I thought title searches looked for this, but it seems not. I suspect this is where title insurance would be a godsend.
Fast forward..we are 1 hour before closing and we get a call from the closing agent that we have to postpone the close. Reason given, HUD hasn't completed all their paperwork. Ok, not a big deal...we wait...and wait...2 weeks later we get a call from the closing agent, the review of the paperwork shows the house was not foreclosed on properly and the ownership is still rightly the original owner. These owners moved out in 2008!! So clearly we will not be purchasing this home, but also the previously owners could have stayed a very, very long time.
Makes me wonder how many of these foreclosed homes on the market were actually foreclosed on correctly? It isn't a big deal for us, we are only 40 days past due on our current home right now so we have plenty of time to find another home. However, it also makes me wonder how long I really have before my house is foreclosed on.
Anyhow...I thought I'd throw this out there, as so many are in limbo wondering how long it will take for their own home to foreclose. I suspect banks are treading very carefully right now. Plus, the market is flooded with foreclosed homes and I suspect many of which were not foreclosed on properly and therefore will have problems when it comes to sell them.
Personally I am thrilled this was found out and closing was canceled. The Realtor mentioned that some people have actually closed, then immediately (like that day or the next) started renovations on their newly purchased home...only to have everything unwind when they find out the original owners were not foreclosed on properly...what a legal mess. I could not imagine.
Oh, just before you ask...title search came up clear on this property prior to the scheduled close. I thought title searches looked for this, but it seems not. I suspect this is where title insurance would be a godsend.
