Owner fighting eviction due to no notice of foreclosure

I recently purchased a house from foreclosure auction at the courthouse and I went to the owner today to offer cash for key. I found out that this owner is a typical fighter he told me he is contact a lawyer to file for an unlawful foreclosure because he didnt get any notice about the foreclosure. in this case, 1. will the sale overturn? 2. am i going to get caught in the lawsuit between the bank and the owner? 3. or will I (as a new homeowner) get suit by the former owner? ? i’m from Georgia. any advises would be appreciated.

When I run into this situation I let the owner know that if they have a good case I’d love to hear becasue I’d rather get my money back then get caught up in a lawsuit. At that point most realize that I’m just caught in the middle and are glad to have someone offering to help. I then sit down with them and ask them to explain why the sale should not have gone through… 9 times out of 10 it is obvious they are just pissed but have ZERO case. At this point I tell them I don’t think they have a case, but offer to work with them - for example I’d even go so far as to offer them $150 for a legal consultation at the lawyer of their choice, if they agree to move and leave the place clean if the lawyer tells them they have no case. This normally get s you working with them and they are nothing but grateful for the help and gracious in moving.
I did have one case where it was quite clear the bank really screwed up - to the point where she had correspondance saying they had received her funds and would not sell the property. In that case I took her to the local Kinko’s made copies of her stuff, called the trustee and asked them to rescind the sale and overnight my funds back to me.

What if the there is a Lis Pendens already on the property? Prior owner against mortgage company and trustee company for mortgage fraud and wrongful foreclosure. Any suggestions?


A couple of suggestions:

  1. Explain to the owner that you are caught in the middle, and ask if they’ll explain why they think the foreclosure was wrongful. This will give you a chance to form an opinion on whether or not they have a case (though I’d just keep that opinion to yourself and be supportive).
  2. If you think they have a case, or if you’d prefer to just not go along for the ride, call the trustee and ask them to rescind the sale. If you think the homeowner may have a real case you might make it clear that if they were to lose you might have damages against them as well - probably easier for everyone if they just let you out.
  3. If you don’t think the homeowner has a case, and are willing to wait to get the property, then let the lenders attorney take the lead in fighting the case. If you are named in the lawsuit you will need to file an answer, but just do the minimum and keep your legal fees as low as you can.

Finally - remember that I’m just an investor, I’m not an attorney, so while this is what I would do given the little detail you provided, you should carefully discuss with an attorney and come to your own conclusion.