Close cancelled after funding

Asked by Alec-alyson, Fresno, CA Fri Dec 6, 2013

My Loan was funded this morning, title officer was going to record this afternoon. Between funding and recording the realtor company called lender to pull wire back and/or title to halt recording. Lender refused but title Complied. Is this legal? Realtor cOMpany company was worried their employee made legal mistakes that could come back on them.

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11
Jose Reyna, Agent, Fresno, CA
Sat Dec 7, 2013
Hello Alec-Alyson,

I agree with everything that has been said here in this thread. However, I'd like to offer another option, and by no means should you sign or agree to anything but I think they at least owe an explanation as to why they cancelled the sale. I am assuming that the Realtor who cancelled the deal is your Realtor. If its the listing agent then I suggest you meet with YOUR Realtor and their Broker and all three of you approach the Listing agent and their Broker.
After meeting to discuss the matter if you feel you have been wronged then at that time you are still within your right to obtain legal council and take action.

Good luck in whatever action you take.
Jose Reyna
Realtor
BRE# 01759692
Keller Williams Westland Realty
1 vote
Ali Qureshi, Agent, Pleasanton, CA
Mon Jan 26, 2015
It is not a very common situation to have the wire cancelled after funding and before recording. That said, it has happened with me in the past! First of all , find out why they cancelled the funding? if you think this mistake will cost you then you should consult an attorney for legal advice and your options.
0 votes
Frank Manduj…, Other Pro, Fresno, CA
Thu Feb 6, 2014
Alec,

I am a loan officer here in Fresno. The last part does not make sense when you said that the lender refused to comply. Did you talk to your loan officer since the loan funded? I think that is where you need to start and find out why they did not comply. Also, you could get an extension from the listing agent until you find out what options are available.

frank
0 votes
Aram Melikian, Agent, Fresno, CA
Thu Dec 12, 2013
I am sorry to hear about the last minute cancellation attempt. You need to seek legal counsel from a real estate attorney to see if they were within their right to do so. It will go back to the terms set forth in the purchase agreement and escrow instructions. The buyers and sellers both have their responsibilities (as well as agents and brokers) and if either party breaches contract, there could be possible recourse for damages. There are so many details that you need to look at that surround the situation, and for that reason, you will need to seek advice from a real estate attorney. Best of luck
0 votes
Tom Sommers, Agent, Lakeville, MN
Sat Dec 7, 2013
The only answer to your question is you should speak to a real estate attorney to answer your questions. The attorney will also be able to give you all of your options as well.
0 votes
Anne-Jeannet…, Agent, Fresno, CA
Sat Dec 7, 2013
Good evening, again! I still strongly suggest you seek the advice of an attorney right away. There are very specific legal avenues your attorney can take to resolve this type of problem. Time may currently be on your side but any delay could cause your loan to falter and/or become more costly. Interest rates are increasing and your current loan lock could expire. Your attorney could quickly determine if there are damages and use that to negotiate with ALL Realtors and parties to the contract. A good attorney will obtain everyone's statements and "issue" explanations and should be able to push harder for the close of escrow. You don't want to jeopardize your loan due to a long delay. I can recommend a couple of excellent real estate attorneys who should be available for consultations on Monday. Best of luck to you!!!

Anne-Jeannette Rankin
Guarantee Real Estate
(559) 289-5411
0 votes
, ,
Sat Dec 7, 2013
Any legal questions should be directed to a real estate attorney. No one here can give you advise on this.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes
Mike Fast, Agent, Fresno, CA
Sat Dec 7, 2013
I will echo the suggestions already given and my advice would be contact a real estate attorney. There is not a whole lot of info to go on, but I get the sense it has become a legal issue that is out of the scope of a real estate agent.
The one piece of hopefulness is that the California purchase contract has a lot of built in protection for the buyer.

Good Luck!
0 votes
Sally Grenier, Agent, Boulder, CO
Sat Dec 7, 2013
Too many unknowns to give you a good answer. Who's Realtor?? Yours? What were the "legal mistakes"?? Sounds like you should talk to your Realtor, and maybe an attorney to find out what's going on, and what you should do.
0 votes
Anne-Jeannet…, Agent, Fresno, CA
Fri Dec 6, 2013
This is a complicated legal issue. Sorry, but I do not believe any Realtor can adequately answer your question. Unfortunately, I think you need to immediately contact an attorney. There are many contractual questions ... and possible solutions...that a good Real Estate attorney can handle. If you need the names of a couple attorneys, please let me know.

By talking with an attorney as soon as possible, there is a possibility that you and the Sellers will prevail and close your escrow.

Anne-Jeannette Rankin
Guarantee Real Estate
0 votes
Trevolyn Hai…, Agent, Highland, CA
Fri Dec 6, 2013
There isn't sufficient information to give you a good answer but I think you need to contact an attorney~ especially if someone made a legal mistake.
0 votes
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