Hi Rebecca, unfortunatley you have just experienced the 'Mortgage Crisis" head on...banks are incredibly stubborn and unwilling to lend on anything out of the norm. It is terrible that you lost out on purchasing the condo.

I hope that your real estate agent was able to keep you fully informed of the situation as the transaction progressed, but these days it is sometimes even hard for the real estate professional to be kept in the loop or even understand where exactly the transaction may be headed.

This is especially true of bank owned properties and short sales. With bank owned properties even the agent representing the seller may not know what the asset manager is planning to do if the current contracted buyer cannot perform. I have seen situations where the listing agents of some bank owned properties have been fired by the banks they represent if the buyers for which they accepted offers cannot close whether it is due to their purchase financing or other.

The heart of the matter is the level of communication from the Seller's agent...they should be communicating the seller's intentions of accepting another contract of sale if the current buyer in contract has not been able to preform. After all, you signed a real estate contract and agreed to perform in a specific period of time.

I believe your next step is to seek the advice of a real estate attorney, as real estate professionals do not practice law and as such they cannot legally advice you, and I hope that you are able to get your earnest money deposit back if you made one.

You where the "Buyer" in this transaction, correct? Did you ever receive cancellation instructions from the Escrow Company? Did you have an Agent representing you? These questions should have been asked & answered by the Agent protecting your interest! I hope you weren’t alone on this transaction...I know the consumer (sometimes) believes that one does not need an Agent to represent them; until they end up with "the short end of the stick" We are professionally trained & well versed with the potential downfalls that can arise during a Real Estate transaction & are legally obligated (once under contract) to protect our clients' interest...I hope this all works out for you...let this serve as a reminder to the importance of utilizing the services of a Real Estate Agent!