Part 1 of this series advised of free consumer protection resources for homeowners in foreclosure who receive offers to purchase their homes before the foreclosure process finalizes.
THESE OFFERS ARE USUALLY SCAMS.
Go into foreclosure and get sued at the same time?
Why are these presumably well-meaning offers usually scams? In general terms, if you enter into a contract to sell a home without the ability to convey title at closing (the reasons for which may vary), the would-be buyers could sue you to recover damages for failing to close the deal. In that case, you’ll have a foreclosure on your hands along with a judgment in court and, perhaps a hefty legal bill.
Reasons you may be unable to convey good title:
- The foreclosure takes place before the sale can be concluded — you no longer own the house
- The amount they offer does not satisfy the total owed on the house
- liens (including tax liens)
- penalties accrued by the mortgage company for being in arrears
- assessments by homeowners association
Our advice to homeowners who cannot afford their homes is to seek good legal advice, such as that obtained in a bankruptcy consultation. Bankruptcy may not be the answer, but it is certainly an option to consider along with others.
Get the facts on your legal rights and protections before making an emotional decision.
This document is intended as an informational reminder and does not constitute legal advice. If you have any questions or would like to discuss a particular situation, please contact the author. The purpose of this document is to provide general information about North Carolina legal issues and should not be construed as legal advice on any specific facts and circumstances.