Expert: Glenn Ginsburg - 10/29/2009

Question
I am purchasing my first home in Orange City, Florida.  I put in an offer and it was accepted, my financing is all in place and was set to close on 10/23/09.  This home was a foreclosure and advertised as bank owned.  Upon the title search the title company discovered there was a second mortgage of $57,000. that was "missed" by the foreclosing attorney.  So now I am at the mercy of the foreclosing attorney's office to get this all straightened out.  My problem is that my interest rate is only locked in until Nov. 2.  My mortgage broker said that he would be able to extend this.  The issue is that no one can give me a closing date.  I am living with family members because I left my place to live in anticipation of my new home.  I have paid for inspection, survey, appraisal and have a $500 deposit in escrow.  What are my legal rights here?  I really love this house and want to move in immediately.  How long should this typically take.  We can not even get an update from the attorney.  I really don't know what to do.  I don't know if I am able to just walk away and get my money back, and we also have the issue of the tax credit.

Answer
Hi Terri,

Thank you for your question.

Real estate contracts address the when an issue similar to your's occurs and the time for resolution. As well as, the rights of each party in this situation. Another thing to look at is the addendum to the original contract which you probably signed at the time of or shortly after your offer was accepted.

The addendum overrides the original contract terms in many cases. We strongly recommend or suggest to our clients to have the addendum reviewed by a real estate attorney as these addendums are very heavily slanted towards the seller and not the buyer.

Each seller of a foreclosure uses a different addendum, so it becomes impossible to tell you any timelines or rights you have.

Sorry I could not be more helpful to you, but at least you have some information and may want to consider seeking the guidance of a real estate attorney at this time.

Glenn Ginsburg