HELP we purchased a home with a "clouded title" from an auction site.

[susandey]

We purchased a home, or so we thought, on an online auction site. The HOA foreclosed on the property (allowed in FL) and placed it in the auction. What my husband didn't do was do an official title search, what he looked up he thought it was a clear title. He thought he was getting a great deal. Turns out the home is in bank foreclosure. We were advised by an attorney that there is nothing we can do but wait and see what happens with the bank foreclosure. The owners of the home have filed Chapter 7 Bankruptcy. The last thing submiitted on their case is the following:
NOTICE OF VOLUNTARY DISMISSAL OF DEFENDANT
You arehereby notifited that pursuant to Rule1.250F,la.R.Civ.P.thePlaintiff voluntarily dsmissesANY and all parties.........

Now what will happen to the home? Any legal advice is appreciated.

 

[army judge]

Anytime one purchases a home under such circumstances, the homeowner is allowed the right to redeem (cure the default) in most jurisdictions.

Buyer beware.

Your hubby in his exuberance and eagerness to secure a great deal failed to do HIS due diligence.

No one can predict what will happen.

Most foreclosed individuals fail to pursue a cure.

The title remains clouded until the statutory period of protection has expired.

This means that for two, three years (or more in some states), no smart buyer will purchase such a home from someone holding an unclear deed. Most purchasers in your position rent the home or hold onto it.

I suggest you follow the wise advice of your lawyer.

Why?

Even if you sold the home (to an idiot, dummy, or fool), when the "mark" wises up, you coukd be sued.

Time could be your friend. It could also be your enemy.

I have heard of cases where such homes were resold to the original owner. That is not without it's own problems and issues!