Foreclosure and Under Contract

Foreclosure and Under Contract

Amherst, MA · Member since 2017 · 46 posts · 11 votes

Does anyone know, can a house legally be on the market, or put on the market, if foreclosure proceedings have begun against its owners?


When a realtor puts a house under contract (that's for sale), does or can that have the legal effect of halting foreclosure proceedings against its sellers, by their lien holder?

Would it be illegal for a realtor to put a house in a status of 'under contract', if there wasn't really a legitimate contract signed for it?

Are these kinds of contracts strictly confidental information, that only a court can order to be produced, for investigation?

Does a realtor have to take a deposit in order to put a house for sale under contract?  Is there any specification for the amount such a deposit must be?  Does the deposit money have to be placed in escrow?  If it does, is the history of that handling of the deposit money records that only a court can order to be produced for investigation?

Are there professionals out there who specialize in investigating real estate deals that have concluded, when an outside party suspects things done in the deal may have broken ethics, rules, or laws?  If so, what are those professionals referred to as, and how do you find them?  Would it be a specialty attorney?  A private investigator?  A banking industry regulatory organization?  A real estate industry regulatory organization?

For any who remember the last thread I had a question in, yes, these are still questions stemming from the same property as in that discussion.  I've concluded that no, there doesn't appear to be any direct basis for me to pursue trying to get that sale and mortgage unwound.  And because of that, I have no more expectations that I have a chance at getting that house right now, at all.

What I'm considering now is whether or not the realtor who conducted the sale did do anything wrong.  If he did, I will see what I can do to have him held accountable.  I'm sure I'll get some responses here that denigrate that as revenge seeking.  Hardly.  If you don't think wrongdoing should be punished whenever possible, then you're probably someone who wouldn't be against wrongdoing if you found it would help you accomplish something you otherwise would be prevented from accomplishing.  And it's exactly that kind of attitude that supports and sustains future wrongdoing.  I support actively holding wrongdoers accountable, whenever possible.  It would make the world a better place for everyone.

0Reply
27 views

Most Popular Reply

Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y

Does anyone know, can a house legally be on the market, or put on the market, if foreclosure proceedings have begun against its owners?

Yes


When a realtor puts a house under contract (that's for sale), does or can that have the legal effect of halting foreclosure proceedings against its sellers, by their lien holder?

No

Would it be illegal for a realtor to put a house in a status of 'under contract', if there wasn't really a legitimate contract signed for it?

No

Are these kinds of contracts strictly confidental information, that only a court can order to be produced, for investigation?

Yes

Does a realtor have to take a deposit in order to put a house for sale under contract?

No

Is there any specification for the amount such a deposit must be? 

No

Does the deposit money have to be placed in escrow?

If a deposit is taken, it is placed where both parties agree unless state law states specifically where it goes.

If it does, is the history of that handling of the deposit money records that only a court can order to be produced for investigation?

Yes

Are there professionals out there who specialize in investigating real estate deals that have concluded, when an outside party suspects things done in the deal may have broken ethics, rules, or laws? 

Not unless you are an affected party with damages related to transaction

See this reply in the discussion

7 Replies

Jump to latestLatest
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    Does anyone know, can a house legally be on the market, or put on the market, if foreclosure proceedings have begun against its owners?

    Yes


    When a realtor puts a house under contract (that's for sale), does or can that have the legal effect of halting foreclosure proceedings against its sellers, by their lien holder?

    No

    Would it be illegal for a realtor to put a house in a status of 'under contract', if there wasn't really a legitimate contract signed for it?

    No

    Are these kinds of contracts strictly confidental information, that only a court can order to be produced, for investigation?

    Yes

    Does a realtor have to take a deposit in order to put a house for sale under contract?

    No

    Is there any specification for the amount such a deposit must be? 

    No

    Does the deposit money have to be placed in escrow?

    If a deposit is taken, it is placed where both parties agree unless state law states specifically where it goes.

    If it does, is the history of that handling of the deposit money records that only a court can order to be produced for investigation?

    Yes

    Are there professionals out there who specialize in investigating real estate deals that have concluded, when an outside party suspects things done in the deal may have broken ethics, rules, or laws? 

    Not unless you are an affected party with damages related to transaction

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    And owner can list their house for sale with an agent even if it is in foreclosure. if they can accomplish the sale before the Foreclosure is concluded that is perfectly legal. 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y
    Any property can be sold right up until the minute the auction is held. No, putting a property under contract does not halt a foreclosure. Obviously you believe something untoward occurred somewhere, I have no idea what that is. And no, you can’t unwind someone Rose’s purchase no matter what you think happened. I suspect your opinion is coming from some misinformation, fueled by some disappointment in not getting a deal.....but, do feel free to explain.
  • Amherst, MA · Member since 2017 · 46 posts · 11 votes
    8y

    @Russell Brazil @John Thedford - Thank you, gentlemen.

  • Amherst, MA · Member since 2017 · 46 posts · 11 votes
    8y

    @Wayne Brooks I believe there's good reason to be suspicious something untoward occurred somewhere, yes.  Finding it, and proving it, that's a totally different question.  And definitely, I'm digging around in these questions because of a deal I didn't get.  If it appeared obvious there was no reason to be suspicious of anything that was done, I wouldn't be interested in the effort to dig.  But this was a very big deal to me, and there seems like good reasons to believe numerous parties in it had something to gain by bending or breaking rules.  I'm just doing what I can, as a total amateaur, to satisfy myself that I've examined every hair on every head of everyone involved.  As much as I'm legally entitled to, at least.

  • Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
    8y
    Originally posted by @John Thedford:

    And owner can list their house for sale with an agent even if it is in foreclosure. if they can accomplish the sale before the Foreclosure is concluded that is perfectly legal. 

     John, do you happen to know if this is in judicial and non-judicial states? Ohio is a judicial state, I know you can list Foreclosure for sale, if sold as you said before the auction it is a legal transaction - 

    Funny situation once, I was pursuing this type of transaction and the seller/realtor simply could not close it fast enough, we bought the home the next day at the auction for $10k less - probably a unicorn situation :) 

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y
    Originally posted by @Steven Gesis:
    Originally posted by @John Thedford:

    And owner can list their house for sale with an agent even if it is in foreclosure. if they can accomplish the sale before the Foreclosure is concluded that is perfectly legal. 

     John, do you happen to know if this is in judicial and non-judicial states? Ohio is a judicial state, I know you can list Foreclosure for sale, if sold as you said before the auction it is a legal transaction - 

    Funny situation once, I was pursuing this type of transaction and the seller/realtor simply could not close it fast enough, we bought the home the next day at the auction for $10k less - probably a unicorn situation :) 

    Actually my comment was made regarding Florida which is where I live and invest and I have purchased houses right before foreclosure. I do not know if there is any difference between a Judicial or non-judicial state but it would seem to me that an owner can list their house for sale anytime before foreclosure. Maybe another poster can answer your question better than I. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.