Bank unable to provide marketable title by closing date

5 Replies

I had a closing date of today in which I had a SFR under contract to purchase. I was informed by my agent that the LA stated WE needed to send them an extension addendum to which my agent replied we are not the ones requesting the extension so the seller should supply this.

Title agent gave a list of items to be completed before sale of home including a death certificate needing to be recorded, a re-foreclosure against heirs, etc. These items seem like they could take weeks and possibly months.

I know I can elect to have my EM refunded but I found it strange that the LA did not feel it was his responsibility to provide an extension request to me.  

Has anyone dealt with a case like this?

Who actually writes up and sends the addendum is such a minor, irrelevant issue, I don't even know why it was brought up.  Yes, you are looking at months likely.  As opposed to starting over with the foreclosure, I assume the bank will reopen the foreclosure case, vacate the sale where they received it, and amend the foreclosure to include the heirs.  This is the usual procedure in FL for these kinds of things.  This will require a new auction at some point in the future.  You could put this one on the back burner, or just forget it completely.

I guess it was mentioned because my agent kept stating if we initiate the extension request, I could be charged and the earnest money would be deducted from my EM because it looks as though we need the extension and not the seller.

I have decided to extend 10 more days and if they need more time, the closing costs would be up for renegotiation as I have incurred expenses due to not closing.

Your agent really thought that?  BTW, if you're interested you can go to the county clerk of court, court case records search, and pull up the foreclosure case file.  You can see what happened when, what parties were served, etc. and follow any reopening of the case.  If they do indeed need to reopen/vacate the sale and amend the foreclosure, it's almost guaranteed they will cancel this contract, as it will be months before it gets back to another auction.  If you can't find the case file by the defendent's name, you can search by case number, which you will find at the top of the LP and Final Judgment recoded will look something like:   00 2013(year of filing)xx 001000 xxxx xx.