I get calls frequently from investors who purchased properties at the public foreclosure auction only to learn that they did not really get such a good deal after all.
One of the most dramatic category of cases are those cases in which a party bids at foreclosure auction only to find out that the judgment upon which the sale is based is VOID.
The consequences and implications of this are quite profound and frankly the full impact of this decision have not yet been made clear. What we do know for certain is that literally millions of dollars are at stake with this one decision and the following language:
It is on that basis that Bank of America argued the Association’s action
could not foreclose Bank of America’s first mortgage and that the final judgment
purporting to do so is void.
A void judgment is so defective that it is deemed never to
have had legal force and effect. In contrast, a voidable
judgment is a judgment that has been entered based upon
some error in procedure that allows a party to have the
judgment vacated, but the judgment has legal force and
effect unless and until it is vacated.
If you are thinking of buying and flipping houses, whether they are are foreclosed property or not, contact a real estate attorney at WeidnerLaw.