foreclosure bid went back to owner!!! - Posted by mary

Posted by JPiper on November 09, 2000 at 06:06:39:


I recently bought a Fannie Mae property. I was required to sign a four page addendum here…which I assume is probably a standard addendum everywhere.

In that addendum there are several conditions to the “Seller’s” performance (that is Fannie Mae). One of those conditions is that they are able to convey good and marketable title. Another condition is that they decide NOT to acquire title to the property. In either case (and others as specified in their addendum), they may VOID the contract of sale.

In the event that Fannie Mae voids the contract under the conditions set forth in their addendum, then the addendum specifies that the Seller would return the Buyer’s earnest money deposit, and that neither party will have ANY further obligation under the contract.

Bottomline is that if you signed an addendum of this type (which is a condition of buying a Fannie Mae property here), then all you’re entitled to is the return of your earnest money. You’re out any extra money that you spent…you would have agreed to that when you signed the addendum.

READ the documents that you have signed.

In the event that you haven’t signed an addendum of this type (doubtful), then sue them (if the amount of money is such that it’s worth it).


foreclosure bid went back to owner!!! - Posted by mary

Posted by mary on November 08, 2000 at 17:50:25:

i bid on a house 28 days ago.i know cause im looking to a closing that was supposed to happen in a couple days.fmha made big no no.they wont conceed to a mistake only want me to get my deposit i paid back and forget it ever happened.seems they took owners money applied it to her acct late and it got foreclosed.i bid i won now i get …with the extra money i spent up in the air cause they wont accept blame.the owner doesnt have any money,her lawyer says fmha should pay,they wont and say they wont.what do i do???watch it people.its crazy out here.

Re: foreclosure bid went back to owner!!! - Posted by ScottE

Posted by ScottE on November 12, 2000 at 14:39:27:

What, if any, redemption period is there in your state? If there is no redemption period or the redemption period had passed BEFORE the borrower had made good on the arrears (and/or other conditions that had caused the foreclosure), then many states have a provision in the law that basically protects the 3rd party buyer and prevents jerking the title away from them even if the plaintiff (i.e. FNMA in this case) is in error. Of course, it appears that you have not rec’d a deed (Sheriff’s or Trustee’s Deed) so you may be in a little tougher position.

Depending on the money you have already spent and the amount of profit you stood to gain from this deal, you may want to consider getting a competent real estate attorney involved.

Good luck and let us know the outcome!