HI,
hoping someone can help. We have signed a contract on a property with the vendor. However, the property has now been seized by the bank. We are wondering if our contract is still legally binding or do we have to start negotiating with the bank who now owns the property? This has all occurred 24 hours ago and the realestate agent is advising us that the contract may still be valid, and that the bank has the final say in the validity of the exiting contract. Is this correct or are we free to of any binding contracts? i.e. to look for another property. So far this has cost us a considerable sum of money and we are looking to cut our losses. Any advise would be welcome.
kind regards
Felicity

Hello Felicity:

Tell me more. HOW has this cost you money? What did you spend it on - a down payment? You want to cut your losses?? What does that mean? Do you want the property or not?? Believe me, the bank doesn't want it. I'm sure they'll sell it to you - unless you have bum credit.

excon

Ok, so you went into contract on a property that was in the process of foreclosure. Were you not made aware of that? If not, you have a cause of action against both the real estate agent and the seller.

Did you give a down payment to the seller? Can you stop that check? I would do so immediately.

I don't believe your contract is binding on the bank since they weren't a party to it. But I agree that they don't want to property and if you are still interested, they might negotiate with you.

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Originally Posted by Bernation1

HI,
hoping someone can help. We have signed a contract on a property with the vendor. However, the property has now been seized by the bank. We are wondering if our contract is still legally binding or do we have to start negotiating with the bank who now owns the property? This has all occured 24 hours ago and the realestate agent is advising us that the contract may still be valid, and that the bank has the final say in the validity of the exiting contract. Is this correct or are we free to of any binding contracts? ie to look for another property. So far this has cost us a considerable sum of money and we are looking to cut our losses. Any advise would be welcome.
kind regards
Felicity

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HI guys, it has cost in interest on the deposit we have paid, termite inspection, building inspection, and also as we are not able to sell our property until we have secured a property for a number of reasons, it has cost us advertising costs, owner builder and insurance. So far we have a debt of $4000.00 that we have out laid for a property that is not yet ours. So hopefully, if you are right, then hopefully the bank will deal with us directly and we will still get the property as we definitely want it.
Thank you for your help.
Felicity