Houston, TX asked in Contracts, Real Estate Law, Bankruptcy and Foreclosure for Texas

Q: I bought a house from someone, but it was foreclosed before the closing date.

On 01-11-2020, I signed the contract with the owner, and the closing date is 02-14-2020. After the house is closed, someone send me a notice on 02-16-2020 that the property had been foreclosed on 02-04-2020, and their deed is recorded on 02-11-2020. Nobody sent me any notice before the closing date. Now I only have a warranty deed that had not been recorded. I already filed a claim using the title insurance. The seller said they filed for bankruptcy before and their lender had no right to foreclose the property. I don't know how long does it take to investigate the problem. I do have a owner's title insurance. Is it possible for me to just get my money back without having to waste my time on investigate about the deed? I don't have to get the property I just don't want any financial lost on my side.

1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: The owners title police will protect you, although it will likely take a while to sort it out legally.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.