Home Buying in San Diego>Question Details

Ceeza, Home Buyer in San Diego, CA

Docs are in escrow I signed and title just received a letter from sellers attorney stating that the sellers wanted to cancel escrow

Asked by Ceeza, San Diego, CA Tue Jun 11, 2013

So to keep my situation short and simple, I enterered into an agreement in April of 2009 with a 4 year option to purchase a residential home. I moved in andagreed to pay the sellers mortgage in full for the entire term and in April of 2013 I was approved to buy the house and got a sales contract signed by myself and the seller. My mortgage broker opened escrow I signed docs and I received notice from my mortgage broker that the loan could not fund because FHA would not insure the loan because I had a foreclosure 1.5 years ago. So escrow stayed opened and I was approved for a hard money deal which I signed docs for last week. Now I have been calling title asking about funding and they said that the seller is not calling them back. Now today title says that the sellers attorney sent a letter stating that the sellers were not going to sign docs and demanded to close escrow, because the buyer (me) had enough time to secure financing and therefor they were not going to extend escrow.

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Answers

17
Hi,

Contact a real estate attorney.

Best of luck,

Mark & Kari Shea
Shea Real Estate
National Association of Realtors
CA DRE License 01713506
1 vote Thank Flag Link Wed Jun 12, 2013
You need to seek legal advice
1 vote Thank Flag Link Wed Jun 12, 2013
I would encourage you to speak with your attorney regarding your options.
1 vote Thank Flag Link Tue Jun 11, 2013
Did you hire a REALTOR?
When you don't and try to outsmart the market, stuff like this happens.
0 votes Thank Flag Link Thu Jun 13, 2013
Having briefly reviewed some of the answers below ... to add; I suggest communicating directly with the sellers (If they refuse then their attorney) and simply ask what they want?

It may be a higher selling price, maybe something else? Seek as much info (without emotions interfering) as you can, then make your best educated decision.

Good luck!

Bill Stuart, Broker/Officer, Realtor®, Certified Short Sale Resource, CNE®
858-231-2405
http://www.USCreditandRealty.com
Bill@USCreditandRealty.com
0 votes Thank Flag Link Thu Jun 13, 2013
Thanks for the reply
I am communicating with the seller and am hoping to work something out next week. I am hoping that if we can not close at this time, then we can work out another agreement so that conventional financing can be used in the next 1.5 years.
Flag Sat Jun 15, 2013
its best to work it out with your landlord/seller for an l/o or l/p extension or close escrow asap. ..you have some great equity to protect if your agreed to a purchase price 4 years ago !! I have a couple really great re atty. I try not to use them as the clock ticks and lifestyle of a lawsuit is stressful. ..if the option monies were 10k, you may lose if not exercising option during contractual time period, but if it's actually 22k earnest mey deposit, the owner may be required to return if they are really serious about canceling now. Did you recieve a notice to perform? ...just contact me for great lender to refi from hard money loan...
Web Reference: http://www.coastal.biz
0 votes Thank Flag Link Wed Jun 12, 2013
I still don't have a clear understanding about your escrow. You state he wants to close the escrow. If that's the case and you have a hard money lender why don't you just close? Or do you mean he wants to cancel?
0 votes Thank Flag Link Wed Jun 12, 2013
Hello thanks for the reply. He brought a notice to cancel escrow. I have signed docs and am ready to close!
Flag Sat Jun 15, 2013
If the seller has refused to grant an extension and has demanded that escrow be cancelled, there is nothing you can do about it. A seller is not obligated to grant an extension. It sounds like the seller may have changed his mind about selling. Maybe the seller is not satisfied with the agreed-upon price??? Maybe you could renegotiate the price??? If price is not the issue and the seller just does not want to sell right now, then you'll have to wait until the seller is ready to sell again. Good luck!

Since you are ready to buy a property now, if you would like to see some available properties just let me know.

Teresa (Tera) George

Coastal Realty
(760) 931-0345
0 votes Thank Flag Link Wed Jun 12, 2013
As others have shared...you need an attorney at this point....Good luck!
0 votes Thank Flag Link Wed Jun 12, 2013
Are you saying that all you need to do is close the escrow with the hard money funds? If so why don't you just move forward with that? Or are you saying that the seller wants to abandon, not close, the loan? I'm getting mixed signals on this.

Also as someone else mentioned what was your earnist money committment on the front end? Just cuious. If all you need are funds to close the escrow give me a call at 760 815-6977. I would like to see this deal a little closer. If there are no kinks in the deal and the house comps and the LTV is right I might be interested in helping you close escrow by taking a second position if you'd be interested in such a deal.
0 votes Thank Flag Link Tue Jun 11, 2013
Without me seeing any of the documentation, I can only offer general information.

Unfortunately, you can't force a seller to extend escrow; the only thing they have to agree to is what you and the seller agreed to in writing.

Also unfortunate, is that you could have easily known ahead of time that FHA wouldn't fund your loan if you had a full documentation approval before you tried to buy the home. It doesn't make sense why your lender wouldn't know this crucial piece of information.That loan is likely the reason you had to extend escrow.

Even if you could prove you paid higher market rent these last few years, if you and the seller agreed to a close date in writing, the close date may end up being the term that matters.

Call a real estate attorney ASAP. This is the only way you can find out what your options are. And, I hope the contracts support your position!

Lease options are an investment technique, they're not meant to favor the buyer. The only way the investor makes any real money on a property is if the buyer can't exercise his option and qualify to buy.

Good luck to you!

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421 Direct
619-884-3452 Cell
Lic # 01443391
0 votes Thank Flag Link Tue Jun 11, 2013
I am wondering if your option was valid as you didn't mention anything about a consideration (money paid) for the option. In most cases, for the option to be valid, there must be a valuable consideration paid. I would expect their attorney to go that direction if you didn't provide a consideration.
0 votes Thank Flag Link Tue Jun 11, 2013
Most lease-option and lease purchase contracts are Litigious as the sellers Decide not to close escrow Due to the property's Current appreciation Occurring during the Lease option period prior to the option being exercised. Was the purchase price agreed upon with a recent appraisal or four years ago In the lease option Or at least purchase contract? It depends on how the lease option purchase contract was written Whether it is enforceable or not.. Did you receive final loan approval within the contract Deadline dates? Did either one of you have any representation? Agree that having an attorney That works with lease-option lease purchase review the docs is best. Contact Maureen at 760-622-6855 or Maureen@landangel.com
0 votes Thank Flag Link Tue Jun 11, 2013
This could be a case for Kenny Law!

You mean they demanded to cancel escrow?

If they demanded to close, why don't you close?

Do you have a copy of the letter from the attorney?
0 votes Thank Flag Link Tue Jun 11, 2013
Hi Kenny The letter I received today was titled notice of cancelation of escrow. The letter stated that His client "the seller" has given me enough time to close therefore they will night extend escrow and wanted to cancel. I would be comfortable speaking with you in person if you would like me to send you some additional info. Thank You
Flag Tue Jun 11, 2013
Try calling this attorney.

Allan Cates
858-692-1035

Good luck
0 votes Thank Flag Link Tue Jun 11, 2013
cswafford925:

Many more details need to be uncovered and reviewed. You seem to be acting in Good Faith, I'm not sure the Sellers are. Did your contract have a Mediation/Arbitration clause?

This situation sounds like it needs to be shared with an Attorney - I would suggest you look into this immediately.

-Steve
0 votes Thank Flag Link Tue Jun 11, 2013
This is way too complicated to give you an intelligent opinion, especially without having the benefit of reviewing docs.

Judges are reluctant to force sellers to sell their homes, but if you have paid more money than you would have just renting you should be entitled to money back if not the ability to buy the house.

Short story, you need to get your own attorney who specializes in this area of law.
0 votes Thank Flag Link Tue Jun 11, 2013
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