Bank recinds sale after purchase at the courthouse...


#1

Today I purchase a home at the courthouse sale for a very good price. The house has been abandoned for months. Later in the day, the trustee office called and told us not to transfer funds because the sale had been recinded. On what basis can they do this? Can we sue for specific performance?


#2

Specific performance is not a remedy typically favored by the courts. You might fair better by contacting the trustee and lender to demand the basis for the recession. If not valid, you will have a good argument for your out-of-pocket damages and possibly your lost profits if you can show that they were reasonable certain as opposed to speculative. An attorney might be able to help you frame the letter and perhaps send a stronger message to the lender that you’re serious. I have heard that lenders will often times settle the dispute for several thousand dollars in nuisance value in order to avoid litigation.