Brooklyn, NY asked in Foreclosure and Real Estate Law for New Jersey

Q: general question: what happens when a foreclosure is overturned if the buyer already sold the property who loses money?

what happens when Mr. A loses his house through foreclose & Mr B buys it from the bank and resells it to Mr C.

In the event when Mr A decided to overturn the foreclosure will Mr. B have to pay back for Mr. C the amount he got at closing or not?

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1 Lawyer Answer
Jay Schmerler
Jay Schmerler
  • Consumer Law Lawyer
  • Eatontown, NJ
  • Licensed in New Jersey

A: This "hypothetical" sounds like a Bar exam question. The scenario should never have happened if B & C did their due diligence. You don't say what you mean buy Mr. A "overturning" the foreclosure. If you mean redeemed the property from the sale within the time allowed, then Mr. B didn't wait out that period and Mr. C was not very bright to buy under those circumstances.

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