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Need advice: Buying a house and sell declares bankrupty
(Xiaoning Wang) wrote:
Incredible #@$^%#$!
What happened was the seller was already in bankruptcy when he sold me
the house. He needed court approval to finalize the sell. I believe he
filed bankruptcy to stop forclosure on the house -- he owns mortgages
and has not paid 2002 and 2003 property taxes yet. Since he is self
employed and has home business, I suspects he has business load to pay
back too.
Now the thing is that he knew this all along and never disclosed any
of them to us until couple of days ago. Obvious there is no way to
close the deal on 4/1 -- the seller attorney never even tried to
reserve time and location for the closing, and the seller never packed
and prepared to move out. Couple days ago, the seller attorney was
very happy to recommend to us to close on 4/1 and rent back until
4/15, and he would pay PITI. The seller is already bankrupt, hello! We
said no rent back and insist closing on possesion -- either 4/5 with
no change on the contract, or on 4/15 which we need to credit since we
have to extend our mortgate which cost us $$. The seller attorney
replied back: NO credit $$ and close on 4/15 or the deal is off.
My thinking is that the seller has no intention to sell/move out the
house. He was using my contract to tell the court to stop foreclosure
since he could prove he can sell the house. This way, he would be able
to stay in the house for another couple of months, free. From the very
begining, the seller never negotiated in good faith -- $0 credit for
home inspection found problems; knew all along the problem with 4/1
closing but never tried to negotiate with us on changing the closing
date;tried sevral times to do rent back; one week (3/30 - 4/5) is not
enough for him to move out; rent back to 4/15 with PITI is OK but
closing with possesion on 4/15 is not; did not even bother to
negotiate the credit $$ amount (about the same amount as the 2 weeks
PITI).
Now I am worried that even if I agree on 4/15 closing with no credit,
still we won't close on that date; I do not trust the seller any more.
Also I worried I could not get my earnest $$ back if the deal if off.
Evidently, the sell attorney handles the seller's bankruptcy and
I'd say it's time to cut your losses and walk. No telling what other skeletons
are still behind the rest of the unopened doors. At the very least, stop
giving in on *anything* -- insist on the letter of the contract being fulfilled,
no if, ands, or buts.
I'd say getting your earnest money back shouldn't be a problem -- it should be
in escrow, and it sure sounds like the seller is in material breach of contract
at this point.
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