My jurisdiction is: Indiana
We made an offer on a house that was either heading to foreclosure or bankruptcy. The owner agreed to sell it to us, but it would be a short sale at our offer price. We waited 3 months for the bank to sign off on the short sale. When that finally happened, we proceeded toward closing with good faith that the transaction would take place. We paid $614 for the inspection and $350 for the appraisal.
One day before our scheduled closing date, we received news that the owner had declared bankruptcy. We were shocked that he didn't wait until after the sale to do that. He hadn't lived in the residence in over a year, and was not making the mortgage payments. My understanding is that if he isn't trying to keep the house or willing to make payments towards it, the bank will request to foreclose the property.
We want to know first and foremost if there is any legal action we can take to have the sale proceed as previously planned. The owner has no interest in keeping the house, and since the bank agreed to sell it to us at our price prior to the bankrupcty, it would be to their benefit to still sell it to us rather than pay for all the costs of foreclosing it. If there is no hope in that happening, we would like to know if there is a way to get our money back that we paid for the inspection and appraisal.
We made an offer on a house that was either heading to foreclosure or bankruptcy. The owner agreed to sell it to us, but it would be a short sale at our offer price. We waited 3 months for the bank to sign off on the short sale. When that finally happened, we proceeded toward closing with good faith that the transaction would take place. We paid $614 for the inspection and $350 for the appraisal.
One day before our scheduled closing date, we received news that the owner had declared bankruptcy. We were shocked that he didn't wait until after the sale to do that. He hadn't lived in the residence in over a year, and was not making the mortgage payments. My understanding is that if he isn't trying to keep the house or willing to make payments towards it, the bank will request to foreclose the property.
We want to know first and foremost if there is any legal action we can take to have the sale proceed as previously planned. The owner has no interest in keeping the house, and since the bank agreed to sell it to us at our price prior to the bankrupcty, it would be to their benefit to still sell it to us rather than pay for all the costs of foreclosing it. If there is no hope in that happening, we would like to know if there is a way to get our money back that we paid for the inspection and appraisal.
