<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Mikempm:
We bid on a home, the seller accepted through our realtor and hers. Then the sellers lender (Conseco) calls and rejects our contract. It appears she was in the process of a foreclosure. She shoght sehe had requested an "in lieu of forclosure" yet no papers had been signed and they told her to list it and what price to list it at. We bid lower and she accepted and now conseco rejhects it and is going to proceed with foreclosure. Can they do that.? Do we have recourse? <HR></BLOCKQUOTE>
The lender as first mortgage holder of record can reject the offer if the mortgagor is in foreclosure and the loan is not going to be paid whole. Your Realtor should contact the lender to see what kind of offer would be acceptable. Will the lender accept a short sale? If the Seller is going to complete a deed-in-lieu of foreclosure, then your Realtor will be dealing strictly with the lender from that point on.
You have a cause of action against the Seller for nondisclosure of her financial information but had an opportunity to make an offer based on the list price approved by the lender.
