Jay, even though I agree that a specific performance suit would ultimately be fruitless, the breaching of a contract (if in fact the seller did) may allow you to sue in small claims court for damages. Your contract should spell out this option so review it carefully for a "Breach" or "Default" section. Obviously the money you lost on inspections, attorney fees, etc. should be recoverable and perhaps even other damages as well.

Granted, the sellers may not have money now (but then again they might), but an abstract of judgment attaches to the person, not a specific property like a Lis Pendens, and the A.O.J. is filed of record. Not saying you want to go this path, but I recently sued an agent and got a judgment against her and it only cost me a few hours of my time and less than a $150. Just a thought, but you may consult with an attorney just for peace of mind if nothing else.

I do understand your anger, Jay. I found a little blerb from Lex Law that explains why a law suit would be a waste of your time. Here it is...

Specific performance demands are a two sided situation. Courts often are reluctant to grant them because human nature is such that the defendant will often poison a situation by damaging the property or screwing up title. This does not mean the seller is off the hook.

While courts are hesitant to grant specific performance demands, they are not hesitant to enforce real estate contracts. Depending upon the laws in your state, the court may grant something called a lis pendens. The lis pendens represents the equivalent of the monetary damages suffered by the buyer. More importantly, it is recorded against the deed of the seller's property. This effectively forces the seller to pay the buyer if the seller ever hopes to sell the property. When a title insurance company reviews title for any subsequent sale, it will notify the new purchaser of the lis pendens and refuse to issue title insurance. With no title insurance, the seller is going to have an extremely hard time moving the property. In fact, it will be nearly impossible as it is difficult to imagine any buyer that would want to get involved in the dispute.


Also, when Suntrust forecloses it would wipe out any lien that you may have on this property because of this Short Sale contract. Good luck and just maybe there is another, better house waiting for you out there.

To have waited five months while our agent is cheering us on, only to be denied by the seller is beyond words. To find out both the real estate company I used, and the seller, had real estate attorneys who "missed " the fact they would owe tens of thousands in taxes because of the ineligibility of the 1099 exemption is worse. The seller should have been informed from the get go. They initiated the short sale!Moving on is pretty hard to swallow. Suntrust did not mess up this short sale. Neither did a balking buyer. Interest rates are going up, Ive wasted 5 months of my time, I have to reapply for a loan and I will spend another holiday season in a rental. Its too bad that isnt worth anything. "Thank you" to all for the advise. When I'm not so mad I might actually take it.

Wow! I am blown away! Zen!!!!

No not settled law, just common sense again.

There we have it; from Robin, courts will not require specific Performance in Private contracts.
Settled law I assume.
Jay, Robin says you should act on her good advise because she understands this stuff.

No court is going to force someone to sell their home in this situation - it is called specific preformance and no court is going to order that in a private sale. Plus, by the time it got to court, Suntrust would have probably already foreclosed! You could sue for money damages if you win a court case which it sounds is probably unlikely. And if you were to win, these people are losing their home to foreclosure, do they have any money???

Time to move on in my opinion.

I learn something every day. I did not know courts could not compel seller to terms of a contract.

Jay, what you need is a lawyer. Performance on both sides is an issue, intent as well as several different issues well beyond a Real Estate agent such as myself.

Be sure to find one that does a lot of Real Estate law.

John

Hi Jay;
If your realtor didn't have you and the sellers sign an addendum's to extend the dates in the contract that you said were missed, then you have a voidable contract. I have experience listing and selling short sales and foreclosures and I would love to help you find the perfect Marion County property. Please give me a call or email anytime and I'll start sending you listings that meet your needs.
At Your Service,
Cheryl Bednar-Jimenez, Realtor 352-304-4654
Coldwell Banker Ellison Realty cjimenez@ellisonrealty.com

Unfortunately, there are too many unknowns in this question.

You will have to review your contract thoroughly to determine what contingencies were in the contract... contingencies that would allow the seller to step back from the contract.

If the seller is breaching the contract, the next logical question is do you have the time and money to file a suit for specific performance. Everyone likes to talk about suing, but it is an expensive proposition.

I suggest you and a real estate attorney review the contract thoroughly to determine the best course of action. No one here can answer definitively without having your contract in hand.

No one can be forced to sell their home. However, they may be liable for damages and commission earned.