Typically a bank owned property will entail additional documents on top of any contract docs you will initially present with your Realtor (if you are working with one) These documents are geared to give the bank owner (through their asset managers) pretty much tull control in the closing process that often includes the right to withdraw or cancel the agreement for most any reason....including a better offer up to the day of transfer. While many times the bank/asset manager may take days to process documents, if you do want the property you and your Realtor need to act with diligence in processing things on your end and meeting all deadlines and contingencies.

Most banks/asset managers will work to process the sale as quickly as possible once they are in a contract situation that is working to close, but you said the bank cancelled escrow which makes me question at what point the bank cancelled the deal. You say they took another offer, obviously it was a higher offer that will net them more money at closing....again the addendum/bank docs probably had that clause in the paperwork that permits them to do just that....one of the pitfalls of purchasing a bank owned property.

Often buyers never know the reason a contract is cancelled as issues do come up on foreclosure properties...it could be as simple as finding out they did not have clear title to transfer. There is a lot of murky water out there. Asset managers have desks piled high with files of properties they are working on and when the file if opened, action is taken, then processed to the next pile.

As far as what you can do, at this point it sounds like if you have further interest in this property, keep your eye on it...your Realtor should be able to do a little further investigation to confirm the escrow was cancelled for a higher/better offer to be able to advise if it may be available at a later time.

Bank owned properties are desirable because of the value of the price.....it doesn't mean it is a simple process to successfully purchase one.

Mary,
I am assuming this is a bank owned property so I have a few questions for you:

* Did you have a signed contract with the bank?
* Did you meet your contingency periods?
* Were you working with a REALTOR?

If you had a SIGNED contract and addendums and you were performing your due diligence in getting your inspections and loan approval done, I don't see how they could arbitrarily cancel your escrow and put it back on the market. There are a few missing pieces for me to give a clearer response.

All my best,

Micki