Get your deposit back and go to the auction.

I would get my deposit back and move on. If you are determined that you still want this house and your confident on your financing committment, make a bid at the auction. Just remember if you are the successful bidder and for some reason you can't get your financing and close within 30 days of the auction, you would most likely lose your deposit. This amount is normally $5,000.00 in a bank check at auction. Best of Luck!!

I understand your frustration, I had a client that offered cash for a home & we were all set to close when the same thing happened. I was ready to get the deposit back & move on. What their lawyer suggested was to look for another home while waiting for the auction so they will have a back up if they lose at the auction. He said there were 3 possibilities: 1) they could get it for cheaper than the P & S they had, at the auction, 2) someone could offer more than what they had a contract for - meaning the bank would sell to higher offer, 3) the bank could buy it back for higher than the price agreed upon - if this happens the lawyer said that the bank must honor the original P&S. It would seem that the only chance of losing is if someone bids higher than what your offer was at the auction. So, if you still want the house, consult your lawyer & see if this senario would be true for you. Just have a back up plan, in case it doesn't work out.

Hope this helps.

I don't believe a lawsuit would have much merit. This whole unfortunate process that you have been through is doing exactly what the system is supposed to do. It is making sure that you are not buying a house that someone would claim as their own in the future. Although it seems that you have gotten the shaft from the process be happy you don't have to go through the headaches later. Banks do make mistakes. Unless there was malice or criminal negligence, I'm not sure there is much you can do. As we are not lawyers, you should talk to a Real Estate attorney of your own.

My advice is to get the money back and be the first bidder. Why let somebody else have control of your money. If it doesn't sell at auction AGAIN, then put in another offer. There are plenty of other reasonably priced homes available in Taunton.

I think that you should follow the other agents advice. Get your deposit back and move on. Waiting to sue may take a long while. Also, you may not be the first person to find out about the pending auction and lose the house at the auction. I don't know the laws in NJ but you may not be able to sue the bank anyway. They do seem to operate by their own rules with very few people succeeding in suing them. If anything you may just have a case against your investor for the delay, but I wouldn't be hopeful on that either. Generally, in this real estate climate the vast majority of people who are being successful in lawsuits are buyers against an individual homeowner, or individual sellers against a buyer, and not banks. I strongly caution you against the wait and sue approach. There are other houses probably better house out there for you. In the future try to find a house that is not a short sale or foreclosure. You will have more rights against an individual homeowner if that is important to you. If you do buy from a bank remember their deals are rarely easy or stress free. Good luck.