Rights of buyer when deal goes bad?

[Nynavey]

Occuring in TN:

Trying to buy property from mortgage co. (by way of realtor) that was previously a foreclosure. Valid contract was signed. Day before closing. Title search revealed foreclosure procedure incorrect-typo in the public notice which must run 3 weeks in county paper. Mortgage company offered us an extension on contract, claiming closure at end of this month-if only we'd wait 30 days for their due process.

We signed extension and waited. Meanwhile, no public notice has been run in paper. After much research, we discover the previous owners who were foreclosed on filed bankruptcy after they lost the house to the mortgage co. Their creditors are being notified of this asset they thought they no longer had. This only prolongs our purchase.

We will lose the interest rate we were locked into, rates are going up. The mortgage co. has offered us no timeframe for sale now. We do not know what our rights are.

Is the extension we signed still valid? How long will this bankruptcy stall (we believe it's a chapter 7)? Can we negotiate a new interest rate with this mortgage co., or at the least get them to take some $ off the purchase price for our trouble? We are living with family members due to this because the alternative was homelessness (the closing not going through on said date). Now that a bankruptcy has entered the equation, will the bankruptcy attorney try to sell the house for more than we agreed to pay to help his client out?

Can we buy the property directly from the individual now? And if so, how can we locate the bankruptcy attorney to discuss?

This seem hopeless. We are paying in time and money for someone else's mistake, trying to avoid lawsuit but want to know if we even have a case...

Thanks in advance for any help.
Nynavey

 

[HomeGuru]

I have no idea what you can do since you do not have a clue yourself. You need to contact the BK Trustee to see what the status of the property is. Is the Trustee going to keep control of the property or return it to the foreclosing mortgage lender.

 

[Nynavey]

Clueless

I'm trying desperately to contact the attorney for the mortgage company to find out status, and to contact the bankruptcy attorney as well. The first attorney does not return calls, the 2nd we've been unable to locate.

Any suggestions on how to find out who is the bankruptcy attorney for someone?

And please, realize, I am clueless apparently...

thanks again,
Nynavey

 

[HomeGuru]

Contact the BK Court and give them the names of the property owners that filed the BK. Ask for the BK petition # and the name and phone # of the Trustee.

 

[Nynavey]

Thank you!

I took your advice and began to search for the Bankruptcy court phone #. In that search, I found the US Court of bankruptcy for TN, and found the record I was looking for online, for absolutely free.

Thank you for the suggestion.

Nynavey

 

[HomeGuru]

Ya see, we give good advice here and best of all it's free. Be sure to tell all your friends and relatives about this neat site, ya hear.

 

[HomeGuru]

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