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cadillacxlr · Mar 20, 2009, 11:23 AM

Seller defaulted on closing and gave a less than 24 hour notice. Our attorney asked us to give a extension for closing so she can negotiate some of her liens with the property... so we did. As of today, we were advised that she is going to take a total loss by filing bankruptcy. That way she can keep the money she has instead of paying her liens on the property, which her attorney says she has the full amount to do so but is choosing not to... Can she really do this?? We had a valid contract... needless to say the amount of time and money we have invested in this closing: appraisals, attorney fees, time off work for both my husband and I, inspections required by the bank. Do people have any morals anymore... don't contracts mean anything?? I am so frustrated!! Our attorney says we can sue (but doesn't sound confident)... is this a total loss now?? THANKS

excon · Mar 21, 2009, 06:50 AM

Hello c:

Several things about your post are confusing...

She can certainly file for bankruptcy, but the bankruptcy court isn't going to let her keep money. I don't know why her attorney or YOURS isn't saying so...

Even if she does file, I can't see why it would or SHOULD interfere with your purchase.

Sure you can sue... But, you'd rather have a house... I'm not sure that YOUR attorney is really interested in seeing you get the house.

Yes, I'm confused... You're going to have to explain further... I see a deal sitting on the table which will benefit ALL the participants, yet NONE of the participants see the same thing I do, or they have no clue how to make it happen if they do.

You need somebody in your corner who can make this deal happen. I'd tell you who to replace if I knew who was screwing it up.

excon

Fr_Chuck · Mar 21, 2009, 07:13 AM

Contacts mean a lot, so what does your say about her backing out ?

First if there was liens not disclosed in the contract you were also the ones wanting to negotiate the contract.

And actually by real estate law, once you asked to redo or rediscuss the contract you are actually the one voiding the contract, so once you go back to negotiate again, that allows the other party to back out.

You are allowed to do what the contract says to recoup any loses

ScottGem · Mar 21, 2009, 09:54 AM

If she files for bankruptcy she will have to try and repay her creditors. You may be far down on the list, however.

The first thing I would do is have your attorney file a Lis Pendens against the property. This will indicate that the property is involved in pending litigation. This should inhibit her from doing anything else with the property while you figure out your next move. I would suggest the next move is to enforce the contract either forcing her to go through with the sale or refunding the money you paid.