Financing in Los Angeles>Question Details

brewinboston, Home Seller in Los Angeles, CA

Escrow delay what to do? Want to cancel at this point tired of excuses.

Asked by brewinboston, Los Angeles, CA Sat Feb 9, 2013

My home was to close Dec 28th it is now Feb 9th. Due to mainly incompetence it has been delayed 6 times. Escrow officer didn't know what an Estoppel letter was, Mortgage broker and loan company didn't put papers in Doc drawer to be pulled, underwriter just up and quit, so had to redo, the holdiays are coming need top push back etc...., Now the buyers have signed or so they say that was on Monday, Friday was closing day. My agent called to see if we recorded and as of wednesday the escrow agent said that the loan didn't fund. The buyers agent never returns calls or confronts anything bad. The latest excuse the mortgage company is really busy. Here's the kicker the mortgage Broker funds thru some company named Icon in California. The Broker admits they are incompetent yet they still use them. At this point I am fed up.

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Dorene Slavitz’s answer
Dear Brewinboston,

At this point it sounds like your best course of action would be to either speak to a good Real Estate Attorney or cancel the sale due to failure to perform according to the contract. If it helps at all, most transactions are not so frustrating and difficult.
0 votes Thank Flag Link Tue Feb 12, 2013
Dear BrewinBoston,

Don't get lost in all the details. Three words - Notice to Perform.

If you're truly fed up, have your attorney or broker deliver a notice to perform to escrow. If the Buyer does not perform under the conditions, move on.

Sorry to hear you're having trouble, I hope it resolves itself favorably.

Best,
Allan S. Glass
President
ASG Real Estate Inc. ®
149 S. Barrington Ave, Suite #660
Los Angeles . CA 90049
Mobile: 213.952.9052
Direct: 213.973.8637 (213.97.FUNDS)
Fax: 213.947.4461
E: asg@allanglass.com
http://www.asgreinc.com
CA License: 01154002

Twitter: http://twitter.com/asgreinc
Linkedin: http://linkedin.com/in/allanglass
Facebook: http://www.facebook.com/asgreinc


Visit Allan’s Blog: http://allanglass.featuredblog.com
0 votes Thank Flag Link Mon Feb 11, 2013
Hey brewinboston,
6 times delays are too many.!? Are you doing a favor to your agent?

Have a real estate attorney to back you out on this, http://www.avvo.com

Good luck.
0 votes Thank Flag Link Sat Feb 9, 2013
Do you want to sell the home or do you want to rent it?

Below is ICON Residential's contact info ... and yes I agree, they are horrible. I did one loan with them many years ago and had an extremely aggravating experience. 2 weeks in underwriting and half the items the underwriting approval asked for were already submitted. Closing that loan was like pulling teeth.

http://www.iconwholesale.com/ContactUs.aspx

So as you can see, it lists their corporate office phone number... but what is really more important is to contact those area sales managers. You can actually just email all 5 of them in the same email and tell them you are a seller on a transaction with [Buyer's Name] and you are about to cancel the sale unless your buyers loan funds by XX/XX/XXXX date. Those area sales managers are paid a small amount when one of their brokers loans fund, so they'll have an interest in you not cancelling. Hopefully that'll help you get an answer on when it will fund. If I was the loan officer, I'd be a little upset that the seller went "over my head" and contacted the lender we were funding the loan with, but if it's been 90 days and the loan officer can't get any straight answers for you or your agent then I don't see what other option you have other than twiddling your thumbs or cancelling the transaction.

And for those who haven't read and think this is a sale in California, read the posters follow up information like Sona did.. it's a sale in Hawai'i.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Sat Feb 9, 2013
Thanks Shane I did what you said the loan officer hasn't answered any of my calls and he has screwed things up from day one and lied about several things as well so I have called his boss as well. The fact that these people involved will rake in about 40 thousand in Fees and commisions makes me want to cancel just out of principal.
I really want it sold but the rental market is 100% where I lived in HI so at this point.
Again thank you for your insight.
Flag Sat Feb 9, 2013
In your purchase agreement was there a loan contingency? Usually it is 17 days from the day of acceptance? Your agent should be giving the buyers a Notice to Perform in which they have 2 days to fulfill their obligation or they are in breach of contract. Unfortunately many things can go awry during Escrow which can delay the closing date - and you've definately had your share of them but by issueing a Notice to Perform, the buyer either has to put pressure on their loan broker or get a second - and with only two days - that second had better be good! If you really want to close - have the second be a loan broker you or your agent completely trust for the buyer to use. If they qualify for a loan under the trusted loan broker, hang in there. If they don't. then the deal is most likely dead in the water anyway.
0 votes Thank Flag Link Sat Feb 9, 2013
There are many ways to get out of a contract on both buyer and seller side depending on what happens and what contract is used. If you used the C.A.R contract there is a clause for seller termination of the contract which requires 24 hour notice to perform - section 14 C. I can't advise you specifically as not your broker and haven't seen the contract, but if the buyers have defaulted you should be able to deliver that notice and be done with it.

In the event that the buyers try to sue you to get you to sell, I can't see any way a judge rules in their favor based on your rendition of events, but if you want a legal opinion you need to speak with an RE attorney.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Sat Feb 9, 2013
I'm so sorry you're going through this, it is a very frustrating situation. From what you've stated it's time to cancel this and move on. If the lender didnt fund, what more can you do with this buyer and since you have not had professionalism from the buyers agent either. Read your contract regarding cancellation and if there are expenses for you to recover, make sure you do so before the deposit is released back to the buyer. Escrow didnt know what an estoppel was? Really? That was the red flag early on but onward and forward...I would rent the place and put it back on the market later if selling is what you need to do.
Which island is your property located? I have friends with property on Maui and Kauai, maybe can refer you to a more prepared buyer who can close.

Good luck, let me know if I can help.
http://www.gallatingroup.net
0 votes Thank Flag Link Sat Feb 9, 2013
Thx Sona for you response, You are obviously part of the 1%that actually know what they are doing. So many hacks out there in RE as I am sure you know giving the others a bad name. Here's the location of the home. http://www.hoakalei.com/

Here's the listing...

http://www.oahure.com/details.php?Address-911807-Waiaama-Street-Ewa Beach-HI-96706&M0=1212197&SearchType=MLSNUM&MyPropertyType=1&MyOrderBy=3&AllPhotos=Y&OneProperty=Y
Flag Sat Feb 9, 2013
If you're looking for what your legal rights are in this situation, you are going to have to consult your attorney.
0 votes Thank Flag Link Sat Feb 9, 2013
My question is what are my legal rights since lat extension ended Feb 1 and it is now Feb 9th?
0 votes Thank Flag Link Sat Feb 9, 2013
On top of everything we have cancelled our utilities in order for the transfer to take place this week. I don't know if the buyers have transfered things into their name. The original contract for this was Nov 15th it is now going on 90 days to close. I'll just keep the place and rent it should take about 24 hours to do that in the Honolulu market.
0 votes Thank Flag Link Sat Feb 9, 2013
My question is what are my legal rights since lat extension ended Feb 1 and it is now Feb 9th?
Flag Sat Feb 9, 2013
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