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Foreclosure Paperwork not filed

Posted on: 06th Feb, 2009 11:13 pm
I am in the process of closing on a foreclosed property. The bank gave us a deadline of feb 16th at 1pm to have closed on the home. We have done everything on our end and are ready to close, we found out today that there is a third party involved. The third party is the original mortgage company that the clients defaulted on. Anyway we find out that everything is ready to go but the third party (citibank lawyer) has not filed the foreclosure paperwork and that we can not close till this paperwork is filed. Has anyone come across this and what is the time line that we are looking at? Also we told our landlord we will be out of the apt. by the 15th because we were told we had to close before then. Is the selling group liable for any of this since they said we had to close by a specific date and they are not holding their end of the contract? Technically do they even have a right to sell the home and put us in an agreement if the foreclosure paperwork has not been filed yet? I feel that we have done everything that they have asked from us and that they were not upfront with us. Can we hold the selling party liable for not disclosing this with us?
Hi John P,

I think the selling party should have mentioned the foreclosure paperwork has not been filed. That's why I think the selling party can be held responsible for not disclosing the correct information. As to your question on how much time it takes to complete the process of foreclosure, the answer is that it varies from one state to another as the entire process has to be followed in accordance with the state law. If the foreclosure is a judicial foreclosure, it has to be settled in a court and this usually takes up time. On the other hand, a non-judicial one can be very fast. Thus, I think, you need to talk to the third party and tell them about your desire to buy the property. This may prompt them to complete the foreclosure a.s.a.p.
Posted on: 10th Feb, 2009 03:41 am
Thanks for the response jenkin7, we found out yesterday after countless phone calls from our lawyer, the paperwork has just been filed and we will be closing next week.. Thank God! Anyway thankyou for the input, and I think that our lawyer probably relayed that information to the selling parties attorney. Thanks again for your response.

John P
Posted on: 12th Feb, 2009 06:02 am
Hi John P,

Thank God, indeed, that finally the foreclosure papers have been filed.

As for the numerous Thanks you've poured onto me, I'd just like to say that it was my pleasure to have been able to provide you some useful input on the issue from the little knowledge I have on the subject. Hope to continue this nice association with you and see you in this forum in future.

Take care.
Posted on: 13th Feb, 2009 03:08 am
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