Seller (foreclosure) not responding?

Question

We faxed Seller list of lender required respairs on June 12th and they have not responded. What can I do? It is a foreclosure owned by a bank on the east coast. Are they allowed to just ignore us like this? This is not a short sale and they originally wanted to close by July 9. They also haven't responded to any of our contingency extensions

Answer 1

If this sale occurred after foreclosure was already started (when was the Lis Pendens or Notice of Default filed?), and it was not a short sale, then you might not really have any legal or marketable interest in the home.  

Did the foreclosing lender (aka 3rd party) give its blessing in writing to the deal that you and the seller struck?  If not, you probably don't really have a deal at all.

You should talk with an attorney about this TODAY!!!

Good luck...

Answer 2

“Seller” = guy that owned before home was foreclosed or bank that now owns the home?  Only the entity that legally owns the home can sell it to you. If you were working with the old owner and the house has since been foreclosed on by a bank, you no longer have an agreement to buy this house.

If you have an agreement with the bank, though, your buyer’s agent shouldn’t have given you the impression the bank would make repairs. That’s highly unusual. No wonder they aren’t responding.

Get your buyer’s agent to call the listing agent and find out what’s going on. They should have done so long before now.

Answer 3

From the outside looking in, it would seem the lender is not going to accept your list of repairs or contingency extensions.  Lenders, loss mitigation companies, asset management companies like clean offers, no contingencies.

Just a guess, but I suspect they will continue to ignore you until you go away and they will find another buyer.  Since you are out of contract, ask for your earnest money back and move on.

Answer 4

See an attorney.  Usually a simple letter from an attorney will get the job done.  It would cost you less than $100.

Answer 5

Your contract will specify how and when things will / may be addressed.  If the seller (lender) is not required to do repairs, they can ignore your request.  This is not at all uncommon when dealing with lenders who have hundreds, if not thousands, of foreclosures they're dealing with and they will only respond to you on their time frame.  Read your contract thoroughly.

Answer 6

Banks typically do not allow contingencies, it is "as is".   You can not add contingencies after you have an accepted offer.

Answer 7

1) don't wait for seller to perform anything worthy. Reason: being depressed + why must seller care?

2) deduct what it would cost you to repair from the Revised Offering Price, citing seller is not responsive and you want to close escrow asap or pulling out. Give the lender 5 working days or so to respond.

3) negotiate for more discount, due to your loss + your efforts + current market.

If you were the seller, under foreclosing, you would do the same as this seller.