Jane Hills, Home Buyer in Stockton, CA

Can a property be sold to others if a failed contract has not been cancelled by Buyer?

Asked by Jane Hills, Stockton, CA Sat Oct 19, 2013

I am purchasing a short-sale property. I have inspection done and loan ready, but due to last minute travel need of the seller, both buyer and seller decided that it is better to ask for an extension. Once we filed for extension, I went for a trip abroad myself. Near the original closing date, I was told in email by the listing agent that the bank did not approve the extension, and they would put the property back into the market. Listing agent was a dual agent and was ignorant most of the time. Since then, she didn't want to discuss any possible escalation to continue the transaction. I had no option but to forsaking the money already spent on inspect and loan fees (~$2000).

I refused to sign the cancellation, and have not claimed back my deposit. This is 1 month ago. Is there any chance I can still get back the property?

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@annette, you are probably right that disdain was developed over the course when things did not go smooth toward the end of the transaction. Indeed, myself and the seller was doing some dumb things while we should have signed the doc as soon as loan was available.

@bill, the market has appreciated 25% by the time I was going to sign. So yes, there is a high possibility that another more favorable offer is lined up to take over. Once the cancellation form was forwarded to me, I have not been able to get hold of the listing agent nor the broker.
0 votes Thank Flag Link Sun Oct 20, 2013
"Listing agent was .....ingnorant most of the time"
I'm very confident that attitude was not detected by the professionals involved. Clearly, such disdane, reflects you thought you knew more than the agent. That didn't quite work out did it.
Very often buyers do things they are advised not to do. Even, when in a short sale transaction and the buyer is advised all things exists on the precarious edge of failure, they do dumb things and look for someone else to blame.
Whether it's a short sale or tranditional sale, the buyer should be very aware the listing agent has been piling up folks ready to buy who are waiting for the buyer to do something dumb. That is the status of real estate sales today. Low inventory means real, in the trenches fighting, for the good values.
Is there a chance you can get the property back? Yes, there is always a chance..
This can not be accomplished soliciting opionions from strangers on the internet. You need regain the confidence of your 'ignorant' agent, (goog luck with that) then follow, to the letter, the instructions of the professional you hired to represent you.
Too often, once the buyer or seller does something dumb, this allows the bank or investor to jump on an offer available that originates behind the curtain. The shame of it is, six months down the road you will see the other party bought it for less than your offer. Real estate transactions, such as short sales that are essentially a house of cards, are destined for failure when everyone involved does not recognoize this reality. Both you and the seller failed in this regard. You may want to reconsider if a short sale is suitable for your purchase goals.
0 votes Thank Flag Link Sun Oct 20, 2013
Since your "short sale" transaction was so close to completion and the lender had done the majority of the "leg work" associated with a short sale, it was likely quite ease to find a buyer ready to step in and take over from where you left off with the transaction. Consult your documents for a clarification of the bank's responsibility to you and yours to them.

The reality here is that once terms of the original agreement are made....all parties involved must approve for things to move forward. For whatever reason, the seller's lender did not agree to an extension. Under normal circumstances, this would terminate the agreement.

Check carefully...but there is normally verbiage that clarifies the customers obligation to sign a release of funds document should things not work out.

Keeping it real....they probably had the property under contract very shortly after the lender elected not to extend and under more favorable terms.


0 votes Thank Flag Link Sun Oct 20, 2013
Your agent should be able to provide you with this information. If your agent is not responding to your calls, I recommend contacting their broker. I hope this helps.


0 votes Thank Flag Link Sun Oct 20, 2013
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