Agent

Cancel sale if home is headed for foreclosure?

REThink Real Estate

Q. Our closing day is next week for a resale home. But today, my closing attorney informed us that two days after our closing day, the house is going into foreclosure. The seller has hidden from us (and from his own agent) the fact that the payments on the home are more than six months past due! Can I terminate the contract because the seller has lied? We don't want to get into a big mess with the bank -- that's why we didn't want to buy a short sale or a foreclosure home in the first place. Is it too late to terminate? --Shania A: Here's my advice: 1. It's your closing/title attorney's job to detect these sorts of issues. Your title attorney has done his job well; he is tasked with doing a search of all title matters -- including mortgages and liens -- and ensuring that that title is clear at closing. Clear title means all mortgages paid off and liens removed, so that you are able to take title and obtain title insurance at time of closing. It's your title attorney's jo...

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