Legal Question in Real Estate Law in California
I am in the process of purchasing my first home. I found a bank owned home that was listed as "active" on the mls in central California. I made an offer that was accepted. Continued through the process and a week before close of escrow the selling bank ask for a 30 day extension due to the so called forecloser moratorium. That was Oct.2010 and 3 extensions ago. Is this legal? It seems to me that we had an agreement and they are failing to perform. What, if any is my recourse in this matter?
2 Answers from Attorneys
If the house was truly bank owned, a "foreclosure moratorium" would not prevent them selling it to you. More likely than not, the problem is that the bank cannot close because there are tenants in the house who are protected from eviction by the Protecting Tenants at Foreclosure law, so the bank can't give you possession.
Your starting point here is to review all the deal documentation to see what it says about closing and possession.
Have you inspected the house? Is it occupied? I'd re-inspect it before closing.
I agree with Mr. Whipple. The "foreclosure moratorium" has nothing to do with what are termed REO properties, i.e. lender owned, because the lender owns them after having already conducted the foreclosure.
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