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Posted by g nelson on July 02, 2005 at 09:45:01:
In Reply to: Re: investment property under contract is foreclosing in 4 days! posted by Irwin on July 02, 2005 at 06:23:09:
Thank you all for getting back with me. My client did pull a rabbit out of a hat and was able to come to closing on Friday, by the way the sale on the steps was to take place on Tuesday July 5. BUT, in the presence of my clients lender, the other agent involved, the listing agent, informed my client that the buildings have been condemned as of yesterday. (for one thing they cannot condemn property in a day!!!) My clients lender who jumped through hoops to get this closed said I can't underwrite this if there is a possibility the buildings have been condemned. He had to walk from the table. The other agents had a signed contract with another individual to sell these same properties, as well as all of the others their client had listed with them (also in foreclosure) for $510,000. You do the math, they brought this buyer and it was a 10% commission (all to go to them). they were going to close this with their buyer. Our closing was to be a 2:00, but the lender didn't walk until 3:30. The other closing was to be at 4:30, we offered them a settlement for us to sign a T&R (terminate & release) last I heard they were thinking it over. I'm fairly certain they closed on Friday, July 1. I won't know until Tuesday, monday being a holiday. My client and I have retained counsel. There will be Lis Pendens filed on Tuesday morning.
The reason we don't buy it on the courthouse steps is because we have a contract on 6 buildings, only 3 are in foreclosure. Once those sell, the seller will no longer be able to perform according to his contract, and he doesn't have to sell us the other 3. If we bid on the 3 and get them, we won't get the other 3.
By the way, the buildings WERE NOT condemned!!!!
It was willful misrepresentation on the part of the Real Estate Broker. By the time we found this out, the bank was closed and the transaction could not be closed by us.
Sorry for the long drawn out story, I appreciate your responses, I will let you know what happens!
: There are so many missing facts that it's impossible to advise you. You didn't say when the auction sale is, only that the bank wants to close by the 30th (btw, what did you do?) ; what your contract price is vs how much the bank debt is; liens, if any. With the few facts you gave, I'd guess you'd be better off buying it at auction, but who knows?
: : I contracted to purchase a 24 unit apartment complex june 17. I was conducting my "due dilligence" and working on getting financing. June 24 I was reading the foreclosure ads in the paper, something I rarely do, and I find the property I have a contract on. There is a total of 6 buildings in the sale. 3 are financed with a local bank, these are being foreclosed on, and 3 are financed with Bank of America, these aren't currently in foreclosure. The local bank has informed us if we close on or before the 30th, the foreclosure will stop on these units. The seller doesn't seem to understand any of the consequences if this sells at auction, it is in bad repair and will not sell for as much as he needs. I have managed to get someone to finance me and close tommorrow (june 30) If the seller doesn't show up to the closing and it goes to the courthouse steps, what action should I take? The property is located in Lowndes county Georgia.
