QUESTION
I'm buying a short sale property and like to know if seller's bank can cancel the deal after closing and recorded?
Asked on Jan 12th, 2013 on Foreclosures - California
More details to this question:
I'm buying a short sale property and would like to know if the seller or the seller's bank has any rights for any reason in taking back the house anytime (weeks or months afterward) after closing and property has been recorded by the county? And after it's recorded with the county, do you need to sign any additional paperwork’s with the Short Sale lender's bank or listing agent?
4 ANSWERS
Richard hirsh
If the sale is closed, the lender surely is required to release its mortgage and therefore cannot take back the property or continue foreclosure. Remember you are buying the property from the owner not the bank the bank is agreeing to accept less than the full amount and must agree to release its mortgage. Make sure you have a good real estate attorney and a good title insurance company.
Answered on Jan 16th, 2013 at 7:07 PM
I'm not sure how the Bank can take the property back if a deed was issued to you. Anything that the Bank records after the deed is recorded is out of the chain of title, and invalid.
Answered on Jan 16th, 2013 at 6:52 PM
No. Once they receive payment and the deed is recorded, they no longer own the house.
Answered on Jan 16th, 2013 at 6:51 PM
1 Award
If the sale closed, meaning you paid the money and the deed to you recorded, the sale should be complete. You should have received a title insurance policy when you bought the property. If so, and if the seller (or seller's lender) is trying to undo the sale, tender that claim to your title company.
Answered on Jan 16th, 2013 at 6:51 PM