Buyer Beware on Foreclosure Homes: You Might End Up Homeless
An Oklahoma family may be left homeless after buying a foreclosed property from Fannie Mae, because the property they thought they were buying was different from the legal description on the foreclosure judgment and their deed.
Danny Shedd and his wife just wanted a nice house on the prairie after his multiple tours of duty in Iraq and Afghanistan. They ended up buying a nightmare. Because the legal description in the foreclosure was wrong, they actually own a completely different parcel of land, with no house at all.
And the worst part? No one seems to want to help them. The neighbors, who actually own the Shedd’s house based on the deeds, are fighting to evict them. The tile insurance carrier refuses to cover them. And Fannie Mae? They’re stonewalling.
Things look pretty grim for the Shedds, and it looks like there’s no relief in sight. But this is just one of the many dangers to buying foreclosure properties. We’ve handled cases where banks knew about title problems, sinkholes, and even toxic drywall, and gleefully sold those homes to unsuspecting buyers. And even when the bank isn’t hiding something important, you might lose the home because the original owner never got properly served—and comes back years later to unwind the sale.
If you’re thinking of buying a home that’s ever been through a foreclosure—make sure you know what you’re doing. Call us to find out how to protect yourself from hidden defect, title errors, and fatal foreclosure mistakes that could rob you of the new home you’re buying.