All good advice from the agents below. One thought, if this was a short sale many agents will open up an escrow to get a HUD-1 Statement to present to the Bank. This is an estimate containing all the costs of sale so that the Bank can decide if they want to sell and how much money they are going to loose on the short sale. In other words you may have had an accepted offer from the Seller, but no approval from the Bank, who would most likely accept the highest offer. Just a thought, talk to your real estate agent and have them explain what's going on. If that is not the case then review all the contracts and addendums to see how they had cancellation rights.
The addendums and counters from the banks Asset Manager can be lengthy, confusing and even dare I say misleading! Sometimes they will contradict each other or have contradictions within the same counter or addendum. It is easy to miss something that allows the bank to bypass you. Generally if you are missing just one initial or signature or one day late on a contingency that is enough for the bank to legally void the contract. They donâ€™t even need a â€œNotice To Performâ€ in most cases. The time frames are also regularly shorter than what is standard on our CAR forms. Go over the entire contract including the banks addendums and counters. I am sure there will be one or the other.
An offer free of contingincies, no home inpsection and closing in 30 days is better than one with continigincies. You need to ask your agent what happend. your agent shold have guiided you and informed you through each step. if you didnt have your own agent, you should have had an attorney review the paperwork for you. it is never accepted until it is signed in writing.
I have some tips on buying a reo property or short sale
This may help for the next one
Next time you sign any bank contracts on an offer you submit, read every line carefully, and make notes of the terms and dates. If you read something that doesn't sit right with you or make sense, ask your agent to clarify it. Sometimes it's not even apparent to the listing agent, and they'll say, "Oh, that never happens," but now you know it can. So, just be aware in the future.
As Oscar said, read each page of your contract very carefully, for any verbiage allowing this. If you don't see anything stating the bank can do this, then speak with an attorney, especially if your contingencies were "effectively" removed, which is common wording with some banks. And, as Jason said, some short sales in escrow actually end up foreclosing, and being listed again as bank owned - for a lower price! It happened to one of my buyers too, but he know it was a possibility.
Sometimes short sales don't proceed as logically as you think they should.
All the best to you on this, and in your next home search!
Pacif REO Properties
By viewing your comment as presented, it would appear that this is a commonly accepted part of the "foreclosure" purchasing process.
Working with a real estate professional that is somewhat informed about the foreclosure process may be beneficial.
Before spending time and money with a real estate attorney, you and your agent should go over the executed contract. You should corroborate the terms of the contract with escrow instructions (they should be the same). If you (buyer) did not execute a term and/or deadline specified in the contract that allows the seller to cancel then there is justifiable reason for cancelation. If the seller, despite of been an REO listing cancels without any reason, then your can seek legal assistance.
On the other hand, if you choose to pursue the seller for breach of contract be realistic of the cost involve versus the gain.
If you have additional questions feel free to contact me.
Executive Realty Group
(800) 291-0053 Direct
(800) 291-0089 Fax
Best of luck.
Broker Associat, REALTOR,CRS
The best advice we can give you is to talk to your agent & their broker, and possibly a Real Estate attorney.
REO sales can be complex transactions and every bank contract states the bank can cancel at any time.
We hope this helps,
Mark and Kari Shea
Real Estate Experts Serving San Diego County
Specialists in Investment Properties, Foreclosures, Short Sales,
Development Opportunities & Traditional Real Estate