Can I take my appraisal fee back ?

[Mike40]

My offer to the "bank own" house get accepted and all documents are done and I waited for moving in the house. The problem happened until Escrow figured out the house have 2 mortgages and the seller ( 2nd mortgage) don't have enough priority to sell the house.
The seller now canceled the contract and I lost my money for appraisal fee and $8000 credit of first time home buyer.
My question is :
1/ is it ok for them to post " bank own" while they don't have enough priority to sell the house ?
2/ Can I sue the seller ( 2nd mortgage ) because of title not clear to sell the house.
Thanks a lot for answering

 

[army judge]

My offer to the "bank own" house get accepted and all documents are done and I waited for moving in the house. The problem happened until Escrow figured out the house have 2 mortgages and the seller ( 2nd mortgage) don't have enough priority to sell the house.
The seller now canceled the contract and I lost my money for appraisal fee and $8000 credit of first time home buyer.
My question is :
1/ is it ok for them to post " bank own" while they don't have enough priority to sell the house ?
2/ Can I sue the seller ( 2nd mortgage ) because of title not clear to sell the house.
Thanks a lot for answering

The buyers credit isn't your money.
It is money the taxpayers GIVE you IF you purchase a home.
No, you can't sue for the $8,000.
Besides, the federal government can rarely be sued.
They possess and usually assert sovereign immunity.

You can sue the seller.
But, you won't prevail.
The appraisal fee was paid for services rendered.
What theory of law would allow you to receive that back?

In the future, you should provide a "failure to perform clause" in your contract to purchase.
Had you had your own attorney, rather than relying on the "free" services of the seller's attorney; this could have been avoided.
Hire your own attorney, anytime you wish to buy or sell a home.
Protect your rights, others usually leave you in the lurch.