Posted by Suzie on April 24, 2003 at 20:04:44:
The real estate is located in southwestern PA. There was no purchase agreement signed at the auction or since then. The only transaction that took place was a downpayment check that was written by my daugter’s fiance for $20,000. Since there was no purchase agreement signed, do you think there may be a possibility that they could get there downpayment back?
Bank auctioned real estate - Posted by Suzie
Posted by Suzie on April 17, 2003 at 17:07:26:
My daughter and her fiance put a bid on a house that was sold at auction by the bank. They were the highest bidders, so they gave the bank a down payment. My daughter now realizes that the house is not worth the bid they gave and would like to back out on the deal. They have not signed any papers, but as I said, they did put a down payment on it. Is there any way out of the deal? If so, will they lose their down payment?
Re: Bank auctioned real estate - Posted by John Merchant
Posted by John Merchant on April 17, 2003 at 23:34:50:
While I don’t know, because you didn’t say, where the RE is, I’d certainly expect them to lose their down payment; but maybe that’s the better alternative! If the RE isn’t worth their bid, they might be much better off losing just the down payment.
If they are now in a position where they have entered into a purchase contract, it might be legally possible for the bank to sue them to enforce their contract; however this is almost never done-seller forcing the buyer to buy. Too costly, too many other buyers out there, etc…so I wouldn’t expect the bank to chase them or sue them.