Q: I am planning to make an offer on a house listed for sale that had a court ruled foreclosure several weeks ago.
the history of the property has foreclosure final date of early march with auction scheduled for late june. The court docs state a bank lien is placed on the property. Is this house technically in foreclosure or preforeclosure? This is not listed as a "special sale" on MLS. Are the risks of purchasing in this scenario similar to buying REO foreclosed property (expect the property to be stripped of all valuables including appliances etc.)
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- Florida
- (239) 499-7303
- View Profile
- Answered
A: You’d obviously be buying it subject to foreclosure. If auction is scheduled then there’s already a judgment in the bank’s favor. You can have a lawyer review the documents to advise you what the required purchase price would have to be to acquire ownership, and it would have to be done with the bank. I would not contact the listing agent about this.
A:
No one should buy or sell real estate without a lawyer. There are so many things that could go wrong, especially with a HOA involved, it would take an explanation that is too long for this forum.
The bank has a judgment of foreclosure and the amount of the judgment is what matters. There could also still be debt to the HOA since the HOA debt is not wiped out by a bank foreclosure unless the HOA Declaration of Covenants and Conditions specifically provide for the debt to be erased. There could be other liens against the property that might not be wiped out by a bank foreclosure.
The owner still holds title to the property until the auction but the judgment has to be satisfied along with any amounts due to the HOA or other priority liens.
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.
