Previous buyers want to continue their escrow after backing out. Now I'm escrow #2 - what does this mean? And do I still stand a chance at

Asked by Rory, Oxnard, CA Fri Apr 9, 2010

buying? I recently signed escrow papers for an REO property, the previous buyers had backed out and the property was put back onto the market. Suddenly we are getting notice that the previous buyers want to continue, even though I have entered escrow on the same property. Does this mean I may actually lose the property because someone that had cold feet has decided they now want back in? Or do I have a leg to stand on?

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Christine Ca…, Agent, Oxnard, CA
Sun Dec 28, 2014

The bank can not be in two escrows. Did the seller sign cancellation instructions?
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Bonnie Sterl…, Agent, Simi Valley, CA
Fri Apr 9, 2010
Hi Rory, I wonder if you have a fully executed contract. Did the REO Seller actually return a signed contract to you. In my experience representing buyers, sometimes they misunderstand what documents they are signing. REO Sellers are pretty messed up in terms of not always knowing what they are doing but their listing agent should have made sure that your accepted offer was subject to the cancellation of the previous escrow. Get with your buyers agent and if you are here on Trulia, you may have lost confidence that they are assisting you properly. Get the broker on the phone or by email and communicate to them for futher assistance, they are the entity that is ultimately accountable to you. If the brokerage needs legal assistance to represent you, they can get some assistance from California Association of Realtors on your behalf, prior to you investing in your own legal representation. Good Luck and keep good notes.
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Barry Shapiro, Agent, Camarillo, CA
Fri Apr 9, 2010
Hello Rory,
It won't do you any good to speak to a real estate attorney -- unless you just like to spend your money! READ you contract and consult with the broker. A SELLER cannot CANCEL a contract in California, unless the Buyer is in default and they choose to. You are the current Buyer. Page 5 of the RPA Item #17 A and B states that you'll agree to ARBITRATION of disputes. Did you initial that line? If you are IN ESCROW all you need to do is to refuse to Sign the escrow cancellation form, plus give your seller a NSP, notice to seller to perform. It's no different than having some 'new' Buyer come along wanting to pay more... You are in control if they accepted your offer. Don't be bullied around by the listing agent. READ your contract! Good luck....
0 votes
Pat & Steve…, Agent, Westlake, OH
Fri Apr 9, 2010
You definitely need to consult an attorney who handles residential real estate matters. This is beyond the services of a Buyer's Agent. (I am both a Realtor & an Attorney (30 yrs), however my comments are only my personal opinions.)
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Bob Georgiou, Agent, Danville, CA
Fri Apr 9, 2010
I agree with Jacqueline, talk to your agent and attorney. The real matter is what did the listing agnet do when the other buyer backed out. I'd bet dollars to doughnuts that the timelines had expired or the other buyers contract was breached so if this were the case his position has been weakened. Also if the contract were breached and the seller provided notification of contact cancellation, you're probably in good shape. If the other offer was better, the seller may be trying to kick you out. There are just too many permutations to be very helpful.
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Jacqueline W…, Agent, Irvine, CA
Fri Apr 9, 2010
Rory.....this question really needs to be discussed with your real estate agent and/or a real estate attorney. Did the previous buyers cancel their escrow? Was your offer accepted subject to cancellation of the prior escrow?
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