I was in the process of puchasing a home from Hiawassee Bank when the FDIC shut it down. This home was an asset owned by Hiawassee Bank that they purchased on the court house steps when a local builder went under. I am using another bank for my financing. What happens to the closing? The contract is signed by both myself and Hiawassee Bank, escrow money is sitting there that I paid, and my loan is approved, but the closing was cancelled on April 2. There is still a legal bidding contact that I want to exercise and the bank that took over Hiawassee assets is dragging it's feet. What can I do?
All you can do at this point is look to the current owner of the property. They assumed some or all of the assets and liabilities of the failed bank. "Some or all" is the key phrase, be sure you know they are the owners and not the FDIC. They'll have to want to do this deal to get it done. Otherwise, the attitude may be to take it slowly and understand exactly what they have and what it is worth.
An attorney would have to help you determine if they have any obligation to honor this contract at all. It may be that they are now the home owner, but have no obligation on the sales agreement. They may just owe you the deposit, or the FDIC may. Again, these are legal questions we can't answer. The best plan is to ask them what they intend to do and what is the timeline, and ensure that you are the first in line if they intend to sell.
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All you can do at this point is look to the current owner of the property. They assumed some or all of the assets and liabilities of the failed bank. "Some or all" is the key phrase, be sure you know they are the owners and not the 