Can we take legal actions against listing bank?

Asked by Micasta14, Chicago, IL Sun Sep 8, 2013

We were ready to close when our lender did a title search and found something wrong with the house, so they fell through. They told us it can take up to a year to clear it up. We called for the first two months to see if any news and until the third month we found out it was relisted and under contract for a lower price we committed too, can we take legal actions for not notifying us first?

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20
Annette Law…, Agent, Palm Harbor, FL
Mon Sep 9, 2013
I am not an attorney. Nothng following should be regarded as legal advise.
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Mica,
AS you are aware, real estate sales and purchase can prove to be highly complex.
Involve a couple of banks, distress sale, and a tille issue and you now have a VERY complex situation that will require professionals to resolve.
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Many pruchase contracts allow a contingency that allow the buyer to secure financing as a condition of the contract. If your lender failed to provide you funds to purchase, FOR WHATEVER REASON, you did not fullfull this contingency and unless properly addressed, your purchase contract will have EXPIRED. In esence....you have no right whatsoever to the subject property.
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There is a MOUNTAIN of essential information regarding this that you have not provided. Since none of us have access to this data, you MUST direct your question to your real estate professional who does have access to this data.
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Can you take legal actions for not notifying us first?
You can sue for ANYTHNG? Do you have a snowballs chance in Florida of prevailing...NO!
1 vote
Daniel Mirea, Agent, chicago, IL
Wed Sep 18, 2013
Yes you can! If you're thinking about doing this, you should get expert legal advice.
0 votes
Manuel Brown, Agent, Chicago, IL
Tue Sep 10, 2013
Dear Home Buyer,

While it appears somebody was lazy by not contacting you for the sale. Save your money for something worthy or forget about filing a law suite. In the end what will you gain. Trust me from my experience the legal system move very slowly and attorneys are expensive. In the instance you are better off placing the money that you would be spending on an attorney into a great property.
0 votes
James Deskins, Agent, Worthington, OH
Mon Sep 9, 2013
You can talk legal action against anybody you want for anything you want. This is America. You can sue anybody, at any time.

I think what you really want to know is "do I have a case?"

Probably not. I'd save your money.

I am NOT an attorney and this is NOT legal advice.
0 votes
Bill J Delig…, Agent, Naperville, IL
Mon Sep 9, 2013
If you really want to fight this and spend $$$ consult with an attorney and see what your options are, else move on to another porperty.
0 votes
Angela Mitch…, Agent, Flossmoor, IL
Sun Sep 8, 2013
Seek qualified legal advice via an attorney.
0 votes
Toska Palmer, Agent, Chicago, IL
Sun Sep 8, 2013
Interesting! The Lender performed a Title search and wouldn't close on the loan because there is something from with the house that would take a year to clear up.

The answer appears on your question.
0 votes
Vincent Paige…, Agent, Orlando, FL
Sun Sep 8, 2013
Micasta,

Realtor's can not give legal advice, seek qualified legal counsel.

VP
0 votes
Jacqueline S…, Agent, Chicago, IL
Sun Sep 8, 2013
If you really want the property and the contract was never formally cancel, you could record the contract against the property. That will cloud the title and prevent the other buyer from closing until you can sort it all out. Your lawyer may be able to get you some compensation for the loss of the ability to close on the property from the bank, just to make you go away. Or they may close with you instead, maybe you could even negotiate the lower price in the new listing.
0 votes
Jeff Nobleza, Agent, Chicago, IL
Sun Sep 8, 2013
As stated below consult your attorney. Howeve if you read the addendum a that many banks have when selling their inventory the addendums usually state that you can only sue to get your earnest money back. Also, I believe there is more to the story than you share. Did you terminate the contract you had with the bank after the title issues were found? Your question seems to indicate that you are upset that the bank didn't inform you the home was back on the market , how is that something you can sue them for? Also, have you considered buying the property with title issues attached? There is a chance the current buyer is doing so...
0 votes
Matt Hoyt, Agent, Highland Park, IL
Sun Sep 8, 2013
Ask your attorney. Clear title is their job I believe. My opinion is don't throw your money away.
0 votes
Michael Cheng, Agent, San Jose, CA
Sun Sep 8, 2013
You can always take legal action, but I don't see what you'd get out of it. If the seller is a bank, it'll be a long shot. Plus, it sounds like you're no longer in contract.

It seems likely the seller just sold the property at a lower price to a cash buyer who can take it as is and isn't as much of a hassle as a financed buyer.
Web Reference:  http://www.archershomes.com
0 votes
Matt Laricy, Agent, Chicago, IL
Sun Sep 8, 2013
I would say you need to consult with your attorney.
0 votes
Melissa Murp…, Agent, Bellwood, IL
Sun Sep 8, 2013
You must consult with your attorney but it sounds as if your lender would not approve the loan. Did you receive your earnest money back? Did your attorney request and receive an extension? Many questions to ask your attorney and lender. All the best!
0 votes
Nicholas Rad…, Agent, Chicago, IL
Sun Sep 8, 2013
You question is not very clear, because there are many details that you have not included. I can think of many scenarios that could have taken place here, but I won't speculate. What party cancelled the transaction? Your lender or the seller? What did the signed cancellation form say? Did it just say the transaction is cancelled and your earnest money is returned, or did it give you an option to purchase the home once the title problems were corrected? Most cancellation (or release) forms just terminate the existing contract and do not give the buyer any "legal right" to purchase the property in the future. For that reason, I doubt you have any basis to take legal action. More importantly than the opinions you receive on this site, what is your RE agent's and attorney's opinion on you taking legal action?
0 votes
Sohail Salah…, Agent, Chicago, IL
Sun Sep 8, 2013
This doesn't sound right, very fishy.


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0 votes
Santiago Ken…, Agent, Chicago, IL
Sun Sep 8, 2013
Something no sound right or info is missing ...
0 votes
JIM Michaels, Agent, Chicago, IL
Sun Sep 8, 2013
What does your lawyer say about this. You did you a lawyer didnt you?
0 votes
Jacqueline S…, Agent, Chicago, IL
Sun Sep 8, 2013
Yes, you can sue for specific performance and force them to let you close on the property. Did the listing bank ever cancel your purchase contract, did they inform you that you were in breach of the contract for not closing on time, did they give you your earnest money back, was there a real estate agent involved? Did anyone inform you of any of this?
0 votes
Philip Sencer, Agent, Chicago, IL
Sun Sep 8, 2013
Something does not sound right. I think there must be other things you have not mentioned, but this is a legal issue and attorneys do not comment on this site. The best person who should know the entire story is your attorney who tried to help you buy it. That is who you need to speak with.
0 votes
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