Home Buying in Lake Elsinore>Question Details

1sttime, Home Buyer in Lake Elsinore, CA

The house was in Escrow already . I get a call that the house has been sold to someone else. Is that even legal or how does that work?

Asked by 1sttime, Lake Elsinore, CA Tue Aug 17, 2010

I already had earnest money down , paid for all necessary inspections all necessary short sale approvals .
Got the water turned on etc.
(It was a long process and wait for them to tell me this while in escrow , escrow was supposed to close in 3 more days , sounds pretty fishy .)
I believe it was Bank of America Owned Home .
This is my first home I was trying to buy.

Any tips or recommendation would be great.

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Answers

9
Hi 1sttime,
Sorry to hear about your situation. Who exactly was it sold to? Another buyer or the bank. If it went to the bank, the short sale was denied or not conpleted. If it was sold to another buyer you should have been issued a denial letter or counter from the bank before they moved to the next buyer. Either way it sounds like your agent did not explain the process to you in detail. Please let me know if you have any questions on how the process works and I can walk you through it.

Good luck!
Chris Blasic
1 vote Thank Flag Link Tue Aug 17, 2010
Hi, 1sttime,

Your question indicates that you may not be getting good professional advice. A short sale isn't owned by the bank. Short sales happen before foreclosure, but require lender approval.. After foreclosure, the bank owns the home and can sell it to whom they please.

If, and I am just guessing because you didn't give much detail, you had a contract on a Short Sale, and the bank went ahead and foreclosed, your contract would be voided and you would get your Earnest Money back, but you would not be reimbursed for the other expenses.

Buying any home, and especially a short sale or REO (bank owned) property, has many traps for the unwary or uneducated. Since the fees for a Buyer's Representative are paid by the Listing Agent out of their selling commission, it doesn't cost you a dime extra to get a good agent to represent you. By now, you know that not all agents are equal, so interview carefully. You might be helped by my blog article: http://www.trulia.com/blog/ellen_doc_stephens_realtors/2010/…

Good luck,

Doc Stephens, REALTOR®
1 vote Thank Flag Link Tue Aug 17, 2010
Unfortunately there are many times where the left hand doesn't know what the right hand is doing. Bank of America is fairly easy to work with (not quick, but pretty easy). The agent negotiating on behalf of the seller with BofA needs to know what they are doing, though.
I hope it works out for you!

Julie McLaughlin
Berkshire West Realty
0 votes Thank Flag Link Tue Aug 24, 2010
Looks like from you details below it was a short sale. If you had your money in escrow and had obtained a written approval from Bank of America approving the short sale and were in escrow and the approval letter had not expired, then in some cases due to error and lack of communications at the bank the bank does not stop the trustee's sale. If all the conditions I said above were meet then I have seen it in the past that Bank of America will overturn the trustee's sale. If you did not have an approval letter or it had expired than it is a different story.
0 votes Thank Flag Link Tue Aug 17, 2010
I would be happy to help in anyway. For more first time buyer info visit my webpage below.
0 votes Thank Flag Link Tue Aug 17, 2010
Bank of America Was His Lender .(they did there own appraisal , BPO before they accepted our offer.)

I received the phone call late yesterday from my real estate agent so, I'm still trying to clear the exact details on what happen.

(If it fails ,I Will be Looking again in the Tuscany Hills, Canyon Hills, Rosetta Canyon,AlberHill Ranch Area Again)
0 votes Thank Flag Link Tue Aug 17, 2010
Earnest money was in escrow you say? Where's your earnest money now? Something does not sound right. Contact the Broker of the agent who got you into this situation and get your deposit back.

~~~
0 votes Thank Flag Link Tue Aug 17, 2010
Wow. I hadn't heard of that before. What does your Realtor say?
0 votes Thank Flag Link Tue Aug 17, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Dear 1sttime.
I'm sorry this has happened to you and it certainly does sound strange. I recommend you have your agent find out what is going on and how this happened, and then speak to an attorney.
Are you sure it wasn't a short sale that ended up being foreclosed on and is now owned by the bank? That happens sometimes during the short sale process and is very upsetting.
At the very least your agent should be able to explain what happened, please talk with him/her.

All my best,
Micki
0 votes Thank Flag Link Tue Aug 17, 2010
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