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Townhouse under contract sold in foreclosure - not disclosed

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Latest post Sun, Mar 12 2017 9:34 AM by karen2222. 20 replies.
  • Thu, Mar 9 2017 5:21 PM In reply to

    • Drew
      Consumer
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    Re: Townhouse under contract sold in foreclosure - not disclosed

    TExas requires seller disclosure of pending lawsuits....but I have no clue what teeth are in the law or if a foreclosure is a lawsuit in that Texas context.

    NExt time your daughter makes an offer ...have your daughter use a good lawyer to,draft the offer, NOT some form designed to protect broker, seller and buyer in that order. 

     



  • Thu, Mar 9 2017 7:33 PM In reply to

    • Lotzaspotz
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    Re: Townhouse under contract sold in foreclosure - not disclosed

    Thank you all for your insight.  Just when my daughter thought she was doing everything she could reasonably do to follow the correct procedures, she found herself in a ditch, anyway.  Drew, I'll definitely encourage her to have an attorney draft the offer and not to use the form.

  • Fri, Mar 10 2017 4:06 AM In reply to

    • Drew
      Consumer
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    • Joined on Thu, Mar 30 2000
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    Re: Townhouse under contract sold in foreclosure - not disclosed

    IVe done a number of deals ...used counsel each time for whole,deal....sleep a lot better .

    Even one of my friends who is a very good lawyer and investor uses independent counsel for even relatively same residential deals ...

     

     



  • Fri, Mar 10 2017 4:29 PM In reply to

    Re: Townhouse under contract sold in foreclosure - not disclosed

    Lotzaspotz:
    I'll definitely encourage her to have an attorney draft the offer and not to use the form.

    Not to rain on the parade, but I suspect in this case that wouldn't help.  An attorney could possibly uncover weaknesses in the contract language, but would he or she have checked at the courthouse to make sure the property wasn't in the foreclosure lists there?  I doubt it.

    In general, it is difficult to protect oneself from out-and-out bad faith dealings.  I have not familiarized myself with the notice requirements to the delinquent borrower for a nonjudicial foreclosure in Texas, but it is very likely that the seller knew about the foreclosure before he got into contract with your daughter, and very possible that he knew even before he signed the listing agreement with his agent.

  • Sat, Mar 11 2017 4:50 PM In reply to

    • Drew
      Consumer
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    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,431

    Re: Townhouse under contract sold in foreclosure - not disclosed

    IF your daughter wants a homework assignment...dig,thru some,of the Texas articles as to seller disclosure ...and if she can find major clues that seller knew of,foreclosure action and failed,to,disclose same ...then consider suing the seller in small clams court ....but don't spend a lot of,money to,chase an empty pot! 



  • Sun, Mar 12 2017 9:34 AM In reply to

    Re: Townhouse under contract sold in foreclosure - not disclosed

    Lotzaspotz, I just reread this thread and realized that this hasn't yet been explicitly said:

    I believe your daughter has a strong, clear legal case against the seller for breach of contract.  She can avail herself of the remedies for seller default described in section 15 of her purchase contract, assuming she used the TREC RESIDENTIAL CONDOMINIUM CONTRACT (RESALE).  She can certainly sue him in small claims court for her damages.

    She should be prepared for the likelihood that she will win a judgment against the seller but will never collect a dime of the money owed her.  But there is a possibility that (1) the seller's financial condition will improve at some point in the future before her judgment expires AND (2) he won't get his debt to your daughter discharged in bankruptcy.

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