Recent Foreclosure 'Freeze' Leaves Would-Be Homebuyer Homeless; Gets 90 Minutes Notice Of Deal Cancellation After Wiring $75K To Closing Agent

In Fort Lauderdale, Florida, The Palm Beach Post reports:

• Sales of bank-owned homes are being called off statewide, leaving buyers with uncertain contracts to purchase properties and, in some cases, scrambling to find places to live. [...] The move by three of the nation's largest lenders to pull back foreclosure operations in light of flawed court documents is causing an unexpected chain reaction of real estate tumult.

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• Norman Lachance is living with a friend after he was told 90 minutes before he was to get the keys for a bank-owned home last week that Fannie Mae was canceling the closing. The JPMorgan Chase-managed property near Fort Lauderdale is now on real estate's equivalent of a do-not-call list.

• "I gave up my apartment because I was supposed to be in my home Oct. 1," said Lachance, whose belongings are in storage. "I bought insurance, paid for an inspection, had the electricity turned on." Lachance said his $75,000 cash payment already had been wired when the closing was canceled. He said he was told that if he asks for the money back, he will lose his hold on the home. "My lawyer asked how long this situation would take. There was no answer to that," Lachance said.(1)

For more, see Foreclosure sales freeze leaves buyers in the cold.

(1) It may be that Mr Lachance also lost out on a now-expired Federal tax credit that required a closing no later than September 30. For more on the loss of homebuyer income tax credits due to the foreclosure freeze, see 1st Time Homebuyers May Be Out Thousand$ In Tax Credits Due To Stalled Closings Resulting From Recent 'Robo-Signer' Mess.