Foreclosure Sale purchase issues in Kentucky


#1

We purchased a foreclosure home at a Master’s Commisioner sale in Kentucky. The master comissioner told us after the sale we were now legally responsible for the home. We have 4 more days to file any exceptions to the sale, but we have no keys! It was bank owned but no one from the bank knows anything even though after the auction there were people from the bank ripping up carpet and mowing grass. We tied it down to a lawyers office in Ohio that holds the keys. The lawyers office informed us until we pay the remaining $87,000 we could not get the keys. I informed them we had to have an appraisal to get the loan and they said they couldn’t grant anyone access not even an appraiser! There is a combination lock on the back door that has a key in it but they won’t give us or the appraiser the code. We have a surety bond for the 87,000 but they refuse. What do we do?!


#2

Hi Angie, I dont’t know real estate law in KY, but it sounds like you picked up a bank-owned home *subject to* your financing approval, and you’re in a bit of a Catch 22 as you’re being denied access until you get financing $ to complete the transaction? I would be surprised to learn that you’re “legally responsible” for the property unless/until you are formally on title and have recorded the deed. I would go back to the master commissioner and explain the dilemma you face with the law office holding the keys (on behalf of the bank?). I would think it’s in the bank best interest to allow you and your appraiser to inspect the property. Perhaps the master commissioner can contact the bank and exert their influence and allow you to schedule an appraisal? You might also write to the managing partner of the law firm that is preventing your access to the property. Include proof of your “financing contingent” purchase, and ask for a reasonable accommodation, as a completed sale is ultimately for the benefit of the law firm’s client (the bank). If that approach fails, hire your own atty. Good luck!