WOW! I thought I heard it all ! ! !

Thanks for posting this, it`s scary. I wish you would give out the LLC name, so I could watch out for them, however they would just change their name. Probably counter sue you.

Who listed the property for sale? Your KW agent (s) (Broker) should be able to help in recovering your expenses without going to an attorney....first.....maybe?

I think you need to look into renting a home month to month. Between the Uhaul, hotel, and going out to eat the expenses are huge.

This way you could stop the bleeding, take a deep breath and look for homes peacefully.

Whatever you do I hope someone is held accountable. I guess it ends up with a lawyer, and lawsuit.

If I needed a lawyer this is the guy I would call.

http://combslawgroup.com/

He`s best in State.

Good Luck
Patrick

Thanks Sara . .

The property was sold at auction on 9/1 to an LLC. We went under contract 9/22 (with an LLC) not knowing that they did not own the property. The first LLC sold it to the second on 10/09 without the knowledge of our agent or lender. The problem was the selling LLC (our contract) continued to say that they were shifting the deed to their own LLC's because of the 1099. The underwriter finally said "Hold up . . I want to look into all these different names related to the LLC". Turns out, the first LLC (the one that bought it at auction) had NOTHING to do with the one that we had the contract with, they were two separate people. All of those affiliated with the buying end were NEVER notified about any of this. We were only told that they were shifting LLC's only to find out they were actually buying the home.

Seasoning did not apply because we are VA buyers. It sounds unbelievable because it is I guess. Our agent, broker, lender, and title rep said that this was new to them and a valid contract never even existed.

The cancellation read "Reason for Cancellation: Seller identified on Counter #1 was not the owner at the time of acceptance"

Bottom line is they costs us $$ on inspections, appraisal, uhaul, hotel, and a whole lot of frustration. I am sitting in the hotel typing this now praying to find a real seller on a house this week or a rental. Bless my twin's heart, they may have to switch schools again. As if a 1300 mile move wasn't hard enough.

Many investors are putting offers to purchase properties from homeowners that are upside down on their home loans, while looking for buyers to purcahse the same properties at a higher price.

They cannot follow through with the transaction until the bank agrees to sell the investor the property. This sometimes takes longer then expected. This practice is not highly looked upon but legal.

When buying property in todays market it is always best to ask your Realtor to check to see who actualy owns the property.

Sara Pichelmann
Keller Williams
480-495-4175

This sounds like a typical assignment contract where an LLC locates a property and contracts with the current owner of title the ability to close or assign the sale to another party without actually taking title themselves. First question, Do you have an attorney, next did your purchase contract have a mortgage contingency clause. If your contract was contingent upon you getting a mortgage and you performed your due diligence to obtain a mortgage then you have grounds to file a complaint at the county courthouse where your property is located against the LLC which is clouding this title. An attorney should be able to advise you on how to proceed.

Thank you for your reply, Emmypark. Now I understand. I thought you still wanted to purchase the home, but there may have been an issue with the Underwriter regarding the length of time the seller owned the property, keeping you from that goal.

Many lenders will deny the loan if the property was not owned by the seller for at least 90 days, the 91st day (or later date) coinciding with the date of the purchase contract.

The mortgage bank I work for will approve & fund a loan for property owned less than 90 days. That’s where I thought we might be able to help you.

Looks like you are set - I wish you good luck with a fast close on your next purchase.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
623-565-9488 text

I think that either VP made a rather odd statement that's inconsistent with some of the previous actions of the title company, or there's more to this story. It just doesn't make sense that the title company would even open escrow for an invalid P&S (or contract). Is it possible that you had a valid contract that expired? Neither you nor the seller should have been able to initiate a title search without one of the two of you having controlling interest in the property. Plus, the title search results should have revealed any discrepancies in the chain of title. Additionally, the seller shouldn't have been able to open another escrow for that property before closing your and his escrow--assuming yours was opened properly. Is it possible that the title company actually dropped the ball on this?

Thanks Roswell . . we are fully underwriter approved. This loan was denied based on an invalid contract. All we need is an address/appraisal/inspection. We could close as quickly as those three happen. We do not trust the sellers of the property at this point to rewrite the contract.

Thanks for the help . . everyone missed this oversight.

Paul you are right no one forced me to enter the contract. Yes I had representation by a KW agent. The title company VP said "I guess your lender forgot to ask if this was the true owner" "I haven't seen anything like this in my 20 years" "You have had a dead contract the whole time". "It definately exchanged owners while you were under contract" I just wondered why the title never told anyone. As a consumer I didn't think to ask "Does the seller have a right to sell me this property?" No I am referring to a property in Sun Groves.

Jeff . . the cancellation has been issued and our earnest money will be returned tomorrow. I may contact you about that grant.

Carlos . . you make alot of sense. Any referrals for an attorney?

Hi Emmypark,

I am sorry to hear your dilemma...U-Haul packed, living in a hotel, the kids registered in school...I am sure this is an extremely stressful time for you & your family. I would like to help.

To expand on what Dp2 had to say, if you still want to buy the home, there is a way for you to do so in a short period of time depending if you are putting more or less than 20% down.

Please contact me at your earliest convenience so we can review the details. I am in the office by 8:00 AM.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct (office & mobile)
623-565-9488 text

HI Emmypark,

It appears, based on the information that you provided, that you allowed yourself to enter into a contract with an entity that may not have had the legal right to sell the property. It was your choice to do this. I doubt that somebody forced you to submit an offer to purchase the property. If you were represented by a real estate agent, then ask your agent for advice, but I doubt that any competent agent would allow you to enter into a contract with an entity that doesn't own the property or have the legal right to sell it. If you want to pursue restitution for expenses or damages, then you need to hire a real estate attorney. Next time, protect yourself better by hiring a competent Buyer's Agent.

By the way, are you referring to the property at 650 S JAY ST CHANDLER, AZ 85225?

-----
PAUL WELDEN
HomeSmart
602-503-4010
Exclusive Buyer's Agent

Hi, I think you should walk away from this contract. The legal costs and stress on you and your family are too much to pursue. Besides, there are some great buys in Chandler right now. If you are unrepresented currently, I could find a similar or better property in the same neighborhood and fast! Did you know that there is an up to 22% grant available from the State of Arizona if you buy a lender owned property. These REO's are often available with a quick decision. REO or regular deal a fast close can be obtained.

Feel free to check out my website and call with any questions. Would be pleased to help :-)

Jeff Masich, Realtor
Arizona Homes and Land
phone: 480-556-0940
email: jmasich@usa.com
web: http://ArizonaHomesLand.com
HomeSmart Real Estate

Although your explanation was kind of confusing at times, I got the gist of what you're trying to say.

First, it's entirely possible that neither companies XYZ nor ABC did anything wrong. XYZ might have put that property under contract, and they might have assigned that contract to ABC (who closed on that purchase on 2009/10/09). That's a perfectly legal transaction.

Second, it's also possible that XYZ might have sent you a LOI, which you assumed was a contract, that you executed without having read all of the terms thoroughly.

Third, your lender might have backed out of the transaction due to "seasoning related" issues. The underwriter probably wanted to see that current owner has owned that property for at least 30-90 days.

Fourth, your lender might have backed out of the transaction, because XYZ might have transferred the property to a trust (which might also look like a sale to another buyer, and which would trigger the "seasoning related" rules).

If you still want that property, then you still might be able to work something out with the current owner. However, you'll need to calm down, take a breath, and learn a few things. You'll need to check with your lender to see if they bailed due to seasoning related issues. Also, you might consider asking the current owner to purchase the property with creative financing, and explain your situation (that his/her/their recent closing spooked your lender and caused them to reject your loan request due to seasoning issues). Let the current owner know that you intend to refinance him/her/them out of the picture ASAP (ideally within 90-120 days).

I assume that you went unrepresented on this purchase - part of the buyer's agent job is to make sure you have a valid contract and the party signing the document is the owner of record. That obviously didn't happen, and by the time title notified you of the issue you have already incurred in a lot of expenses and wasted a lot of time.

The best advice we can give you at this point is to hire a real estate attorney to find out what can be done if you want to take any action on this case.

For future cases I will advice to use proper representation when buying a home. I live in Chandler and specialize in the area. I will gladly assist you if you need assistance in the future.

Best regards,

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
http://www.SmartAZRealty.com