My advice. Ready your contract thoroughly. Talk to the agent's broker. Then take it up a notch (attorney or DRE) if you still feel it was unfair or unethical.
I will say though, if what you say is you got the approval from the bank in July and still not closed by September - you said 3 month escrow... that is way too long. Escrow length normally is 30, and no more than 45 days in most cases.
Again, we're not attorneys here and we don't know the nuances or reasons why your escrow was taking so long, but perhaps the sellers rejected your extension, served you/your agent the demand to close escrow, and then canceled it when you could not perform. That likely was perfectly within their rights. Again, if in good faith you were just a week or so from closing, that is one thing, but if it was dragging on for 3 months, as a listing agent, I probably would've advised we moved on way before 3 months. On a short sale, not only are you dealing with deadlines on approval letters from banks, but sometimes racing the foreclosure clock. A 3 month escrow is not "typical" so something else may have been going on, and it is difficult for all of us to sit out here and guess as we do not know the situation.
My advise is to move on and get a realtor you trust and who has your best interest in mind. There are many short sales out there and you may end up with an even better property.
Good luck to you,
What your agent did sounds sneaky, and wrong, but without the details, one can only assume. If she was representing you,and the other buyer, she would have made a commission either way. So what you're saying she did doesn't make sense unless your escrow looked like it wasn't going to close. Was she also representing the seller? Dual agency, while perfectly legal if disclosed, can be full of all kinds of problems and agent liabilities...So can representing more than one client for the same property.
Document everything that happened, and go have a talk with the agent's broker. ...or the local association of Realtors if the agent is a Realtor...or the dept of real estate. Or, talk to an attorney. I really think you would need to fully explain your situation for this forum to be able to advise you.
Regardless of all of that, another offer can only be accepted subject to cancellation of the first offer. I don't believe expiration of the short sale approval is an automatic cancellation of your contract. But,an attorney can better answer that.
I'm sorry you had such a bad experience. From what you've told us, it sounds like she really didn't represent you well....Unfortunately, every bad apple makes us all look bad.
Don't give up
You said "Instead, my agent, made another offer on the property with another buyer. This buyer made an all cash offer. We lost the house, after being in escrow for 3 months, and my agent (who no longer is my agent, by the way) sold the house, all cash, to another buyer in two weeks."
This sounds like you opened escrow with the title company even without the short sale approval...or are you referring to the time waiting for short sale approval but not opening escrow? Even if the short sale was not approved, but your offer was accepted, i.e., ratified by the seller, you should still be in contract UNLESS the short sale addendum had expired. Nonetheless, one of you --- either buyer or seller --- could have applied for the extension. Sounds like you did, but nothing came of it. And if the extension was rejected, as a formality, was there a cancellation of contract?
So many unknowns here...
Did you talk with that agent's broker to review and get a clear understanding of what transpired?
You can have the listing agent request an extension...if there's good reason. Without all the information about your situation, it doesn't make sense to speculate..or assume.
If you are within your timelines for contingencies, or even if not, you are still in escrow as the escrow officer has to be instructed by both parties to cancel. The bank is not a party to the contract, therefore cannot cancel it. But, an expired approval is just that, expired. It is no longer valid. However, unless they have good reason not to, they will most likely approve an extension.
If you want to fill me in on the details, I can give you better advice. Send an email to NoDumbQuestion@gmail.com. But, your agent should be able to answer these questions for you.
You would technically be "out of contract" if seller has not delivered to you written short sale approval within three days AFTER the seller receives the approval letter(s) from all lenders, but you would still need to deliver a written cancellation of contract to the seller ..the seller can also delver to the buyer a written cancellation if they, A) have not received an approval letter or, B) does not agree to the terms the bank has offered. The time for the approval date can be extended with an addendum to the short sale addendum if both sides agree.
Good luck ~Allison
If all parties want this to close, you should be able to keep it alive.
In response to another comment. You do not have a contract with the bank. The contract is between buyer and seller. The bank acts like a contingency. But the best thing I can say is read the contract as it is very clear what happens when timelines pass and how to extend or cancel can b e discussed with your agent.
I would assume (but you know what they say about those who "assume") that your deal is dead, or at least needs CPR....... ....do you have an agent or an attorney handling this?
If so, what is their opinion of the status?
First of all, there are actually three principles invoved in a Shortsale; the Buyer, the Seller (Homeowner) and the Bank (the actual Seller).
Secondly, you refer to the "Approval Date"; which to my mind is the date that you specified for the Bank to get back to you on your Offer.
Thirdly, you say "is the contract automatically cancelled" acknowledging that you have a CONTRACT.
I can only guess at what is happening here:
You made an offer, the Sellers approved it, and it was forwarded to the Bank. The Bank has not responded and you believe that the Seller's approval created a Contract for you.
My main reason for believing this, is that if you really had a CONTRACT with the Bank, the Bank would not be ignoring you.
I am further guessing that the Bank could still get back to you with an answer.
Have you, or your Agent, contacted the Listing Agent for his interpretation?
Good luck and may God bless