Rescension

[Brad Barrington]

George,

When a bank rescinds a foreclosure, can you claim damages for the money you tied up and for how much?

[Will Crozier]

Brad,

Can you tell us more of the details of your situation? I'd like to find out what happened.

Thanks!

[George Roddy, Jr.]

Brad,

The answer is SOMETIMES.


I would always claim that you have been damaged by their mistake. Usually the trustee will read a disclaimer that the bank can rescind the sale, but if you make a big stink, you may be able to get a few dollars. Most banks don't want to deal with a lawsuit and will pay to make you go away.

I typically ask for $2,000 for damages. I have known some investors who have got up to $5,000. It is not reasonable to expect more than 2k.

You will need to talk to the actual bank/lender, not the trustee or lawfirm.


George