What were you told as the reason the bank had not signed in 1.5 months?
I wonder if another opportunity may exist soon on this same home. If you could give me address I will do digging and try to find out a little more for you.
It is extremely excessive for a bank to take 1.5 months to sign the contract on a foreclosed home. It looks like there is more to the story than what you know. The fact is that banks are being borderline abusive with the clients when it comes to short sales and/or foreclosures - the same way that they are borderline abusive with everything else (credit cards, etc...).
Even with all that what happened to you is very uncommon. Is the property still active? If it is and you really want it you can try placing another offer, this time submitting all the correct documentation from the begining, along with some other information.
Beyond that you can try some legal means, if in fact they violated the contract, which we do not know. But the trouble will be too much for what you can gain. Your best plan of action, if possible, should be to find another property that fits your needs. Stay away from short sales, and if placing an offer on a foreclosure make sure that you get all the documentation and be aware that they might not want to play fair. Work with an agent who is experienced in foreclosures.
To avoid all that completely you can find a regular sale. Regular sellers know they have to compete with foreclosures and also price their properties agressively.
Based on your story, you never had a signed contract with the seller's signature. So, there is no agreement to enforce. I've never heard of a bank owned property taking 1.5 months to respond with documents. It really sounds like a short sale. Without knowing more details of the transaction such as the address or mls #, there isn't much advice anybody on the forum can give you.
And yes there is a good possibility that you can restart your file/offer with them. I invite you to contact me with more details.
Buyer's Agent REALTOR
It sounds like you had a short sale happening here, is that right?
I am guessing that it likely is. In this case, you don't have a done deal until it's recorded and funded.
Sorry to hear about your dilemma.
Often, when banks get low ball offers or they are dealing with what the consider to a wacky buyer, they will reduce the price significantly to either A) Motivate the existing buyer with an offer on the table to "get real," and B) Motivate you or another buyer with a competing offer/lower price. They are attempting to create "urgency." Apparently, it worked!
Simply put, play by their rules, or you dont play. PERIOD. Re-submit your offer WITH ALL REQUIRED AND REQUESTED DOCUMENTATION, ASAP.
As far as not getting some of your paperwork back immediately, this is fairly typical. Banks consider their verbal acceptance of a contract sufficient. I have closed transactions with foreclosures where I did not receive the sellers signatures on the documents until 5 days AFTER the close of escrow. This is VERY contrary to the way most deals normally operate and it appears this has lead you and your agent to have suspicion of the banks intentions. In your particular situation, its sounds like they didnt get your paperwork back...so why should they send yours???
I dont say this very often, but it appears as if your agent is not well versed in foreclosure sales- I am NOT saying you should dump your agent, obviously they are doing their best to represent your interests, however the lack of familiarity with foreclosures seems to be causing you some problems. You may wish to call the broker and ask them to oversee the file a little more carefully, or ask your agent to enlist the help of an agent in their office who is familiar with institutional sellers. OR, do exactly what you are doing- get advice from people who have experience with them.
Above all, listen to what the listing agent is telling you is required. He or she is familiar with what the bank requires. Yes, he or she works for the bank, but they also know they have a seller who will sell, so they dont care if YOUR deal closes or not.....there will be another buyer for that property down the road, because banks want to sell. Good luck to you.
Nobody here can help you without the address or the mls# of this property. If you really indeed want assistance aside from your agent, you need to give us more info (address and/or mls#).
Buyer's Real Estate Agent