I had contract on a property that was up for auction last month. Contract was executead, earnets money is deposited at the title company, option money was paid. After looking at the HUD1 trustee decided not to let this sell go through. The property was auctioned off at the county office.
I Paid Appriasal - $400
I Paid Inspection - $ 250
Can recover this amounts from the seller as he never mentioned the bank has to approve on the contract? I have not singed the contract termination to recover my earnets money as it will release all parties.
The contract was executed. he doesn’t get to decide to just "not perform. It is now a legally binding document. And under the default paragraph it probably says that you can enforce specific performance - that is force him to consummate the sale.
don’t sign the termination unless it specifically references a repayment of those items in question, including a payment date.
If the bank wont give him the loan will be hard to get specific performance. Yes you are legally entitled to this and/or all damages but collecting maybe a different story.
Get a lawyer to let them know you are serious. He will most likely negotiate a reasonable settlement that the buyer will actually pay. The most he can get without going to court.
I had the execuated contract with seller who was willing to sell the home. Seller was able to pay off the outstanding loan and back payment and realtors… with the amount on contract…Why would a trustee say NO to this and let this go to auction and bank own it…
I thought they really after the their loans and not after property… this is going against the rules of universe…
Sorry misread your post on my 1st. reply.
I also would have thought bank would sign off. Only thing I can think of is if bank did not want to wait and see if your loan went thru, if you were even getting a loan.
Dont think you can recover cost unless seller backout of deal, sounds like he was still willing it was the trustee.
In court you would say he should have known he did not have marketable title and he will say you knew it was going to auction and trustee had title.
I would have done the exact same you did and expected the trustee to sign off.
Why not ask the trustee why your sale was blocked? Perhaps the trustee made an error, misread the HUD-1, or more likely did not understand that the seller was bringing money to the settlement table to fully satisfy the defaulted note.
The answer to your question is no, you have no recourse to recover your costs. The appraisal and home inspection are costs incurred at your own risk.
