Sheriff sale gone bad: What would you do?
I've been buying at Foreclosure auction in Indiana (judicial state) with about 8 properties under my belt over the last couple years. I did a lot of homework and its been working out pretty well.
Last Friday I picked up a sale, went to check it out and the owner's son let me in to see the inside which I had not seen. I was excited to see lots of granite and tile.
Upon contacting the owner via the cell number his grown kid gave me he tells me that he paid the bank and it was not supposed to go through the sale so lines must have gotten crossed somewhere.
I asked if I could get back in to take some pictures when I realize that he is not planning to go anywhere. (should have take them first time in) He tells me no one is home. His son let me back in to take some to my surprise as his dad must have really thought no one was home or that I would just not try.
Getting to the point, the Sheriff tells me there was no cancellation attempt before sale started. Attorney for the bank calls me back later to say apparently he made a payment top the bank to try to save it, but they are not sure of the implications yet. Says in the past they have filed a court appeal to return my money to me and preserve the title for him.
First question: Do I have possession by virtue of the payment and receipt and court action? The court wont assist until I have the Sheriff's deed and the judgement indicates no further court action is needed for possession upon presentation of the deed and if occupier does not vacate at that time the Sheriff will assist. So it would appear that possession is not actually mine until the attorney for the bank prepares the deed and gets it to the Sheriff for me, correct? This comes into play if he decides to trash the place I figure.
Second question: Would you just make nice, walk away, and try again next sale? If the guy did what he was supposed to to save it and the bank or attorney dropped the ball on him then I'm inclined not to piss him off further. Especially after the promise of a couple bullets to the head if I come back in his house. On the other hand, its not my fault someone dropped the ball on him and if he doesn't trash it I could make 40- $50K. However it could be a drawn out court process too. Curious for your thoughts and suggestions.