Foreclosures for sale are homes that have been acquired through foreclosure and are being put up for sale to cover the debt that is attached to the property. This can happen when the homeowner has failed to stay current with their mortgage or other home loan payments. In such cases, the bank or lending institution can reclaim title to the home and put it up for sale, with the proceeds from the sale compensating for the missing payments.
A foreclosure for sale and be an idea property for a person who is looking to buy a home, as this type of property is often put up for a reduced price. However, there are various legal issues that need to be considered when shopping for a foreclosed home.
When dealing with a foreclosure sale, some legal issues that you need to consider are:
- Title Disputes: It is important know who is the true owner of the home. In many foreclosure cases, the previous owner might not be aware of the foreclosure proceedings (for instance, if they have been away or have relocated out of state). In case of a dispute over ownership, a quite title proceeding may be necessary
- Unpaid Property Taxes: Foreclosed homes can go through periods where no one is living in the house for a long time. This can lead to other complications, such as unpaid taxes and unpaid utilities.
- Appraisal Disputes: Property valuation disputes can arise, especially if there are issues such as home repairs that need to be done, structural defects, or zoning violations with the house.
- Filing Deadlines: There may be special filing deadlines for foreclosures. Thus, you must make sure that you file all necessary papers in a timely manner.
Lastly, various other issues can arise with regards to foreclosure fraud. These issues include scams and other fraud situations, such as cases where deed to the property was obtained through deceitful means. These types of situations can cause problems when the title to the property is being transferred from one party to another.
Depending on the situation, legal disputes related to a foreclosure can be resolved in a number of ways. For instance, available remedies may include:
- Monetary damages for losses caused by a fraudulent transaction
- Injunctions by the court to evict a person or transfer title, especially if a former resident does not want to leave the property
- An order from the court requiring the parties to rewrite some or all of the real estate contract for the sale of the home
The court may order other remedies, as well. As mentioned above, the availability of remedies will vary depending on the dispute and applicable laws.
Foreclosures for sale can often present unique buying opportunities for persons interested in acquiring real estate. However, they can also involve very specific legal issues that may need to be resolved before the sales transaction can be completed. You may need to hire a real estate lawyer in your area if you need help with a foreclosure issue, or with any type of real estate issue in general. Your attorney can provide legal advice and representation to assist you with your claim. If you need to file a lawsuit, your lawyer can guide you through that process as well.