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California - Foreclosure fiasco

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  • California - Foreclosure fiasco

    My boyfriend is in the process of purchasing a foreclosed home. He went with a VA loan and offered considerably less than the asking price. Of course, when the house was inspected there were a few things that needed repair before the VA would approve the loan. The bank did not want to fix the items and wanted to back out of the deal because they felt they should have waited for a higher offer, so my boyfriend and his agent paid for the repairs. Yesterday, the real estate agent called my boyfriend and told him he needed to wire money to the title company so the property could be closed today. Today, my boyfriend found out that the title company has just declared bankruptcy. Does anyone know what recourse he has? I'm wondering how and if he will get the money back that he wired.

  • #2
    Originally posted by WorkHorse View Post
    My boyfriend is in the process of purchasing a foreclosed home. He went with a VA loan and offered considerably less than the asking price. Of course, when the house was inspected there were a few things that needed repair before the VA would approve the loan. The bank did not want to fix the items and wanted to back out of the deal because they felt they should have waited for a higher offer, so my boyfriend and his agent paid for the repairs. Yesterday, the real estate agent called my boyfriend and told him he needed to wire money to the title company so the property could be closed today. Today, my boyfriend found out that the title company has just declared bankruptcy. Does anyone know what recourse he has? I'm wondering how and if he will get the money back that he wired.
    He probably won't get his money back, but there are things he can do to try.

    He can file a claim in Bankruptcy Court. There are some timing issues (i.e. did the Title Company file BK before or after he wired the money), that might work in his favor. If the agent recommended he use of the title company, then he may be able to sue the agent.

    He's going to have to do a lot of legwork to get some of that money back.

    Comment


    • #3
      Originally posted by Inland_Empire_ Lawyer View Post
      He probably won't get his money back, but there are things he can do to try.

      He can file a claim in Bankruptcy Court. There are some timing issues (i.e. did the Title Company file BK before or after he wired the money), that might work in his favor. If the agent recommended he use of the title company, then he may be able to sue the agent.

      He's going to have to do a lot of legwork to get some of that money back.
      Thank you for your reply. He will be talking to his agent tomorrow, I've let him know your answer.

      Comment

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