Foreclosure/help please help!
Long story so I'll give you the quick details:
my parents bought my childhood home in the early 80's. Recently the area they purchased it in has become a war zone with the city, which imposed a lot of bylaws and regulations on the homes due to the fact a major university wanted to buy the area for cheap. It devalued the homes by thousands upon thousands of dollars - nobody would dare buy a home in that area if they had any brains. It put the whole few blocks in a bad position. Finally a developer came along and had enough power to look past the odd restrictions of the area (several other developers had tried to make a purchase but were frightened away by the city)and when the offer came in from the developer the whole neighborhood jumped on board. My parents were being cautious at first, believing the buyer might pull out of the deal they weren't going to buy another home until the closing date had passed. But they were looking at homes and quickly realized they hated everything and were having real issues - they got so worried and worked up over ending up somewhere they didn't want to be that they decided that they didn't want to have to scramble like mad to find a house that was available AFTER the closing day (and have to both find it, get it and move out all within a month) and that they would consider buying a home before the closing date and keep their fingers crossed it would go through. before they took the plunge they talked to their real estate agent, and the agent from the developers and they were assured it was OK to go ahead and take the risk. They took it only because the could agree on one place, but it was in very high demand. Along with their offer they tried to put in a clause about that the deal is goof if their home doesn't end up selling, but the old woman who owned the place refused to take the offer unless the stipulation was off the table. The closing date for both places is in a little bit and recently it's looking as though the developers ARE going to pull out of the deal. My parents are worried sick because they simply do not have the money to pay for the other place. They are under the impression they're going to lose their whole life and all their possessions to the bank, and have to literally start over from scratch at such an old age and they're terrified sick! What really happens in a case like this? My husband seems to think that the back will foreclose on the property they bought immediately but that they'll get to keep the deposit from the developer, since he pulled out, and that the bank will sell the new property and they'll only be held responsibly to pay the difference.... is this true? is there any better way this might go? And it bring up an interesting question....what's the difference here between my parent's situation and that of the woman owning the home they bought, and the developers? I mean if the developers pulls out then technically they'll still be responsible for their original house, correct? But if that were true then why, if THEY have to pull out of their deal with the new house, does THAT lady not still have possession of HER house? Why does the bank get her house? Why doesn't the bank get my parents house if the developers can't pay up? I am so confused...and so worried....
There are a lot of variables with your situation and I need to ask multiple questions to be able to advise you properly. If you would like to call me directly, i would be happy to coach you, otherwise I would have to write a novel on all of the different scenarios that could play out on this.
My number is 801-891-6604. I am in Utah.