Property is REO and they wanted to cancel the agreement and would not extend escrow days any longer. i just noticed the property is back on market.

Asked by Cloud, Gardena, CA Sat Nov 13, 2010

wIth different listing agent. Problem is I cannot close on the date they requested. I am confused what can be done in this situation. I am still working on the loan approval. I haven't signed cancellation or contingency removal yet. If i pass the escrow closing date and they wouldn't extend the date, what would happen?

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Sylvia Barry,…, Agent, Marin, CA
Sat Nov 13, 2010
If you are still working on the loan approval process and you have already passed your escrow date, it means you probably should not have gotten into contract under the condition you agreed upon.

Regardless, the bank now wants to cancel the agreement with you and would not extend escrow, sounds like it's time to sign the cancellation paper and get your money back. Since the bank wants to cancel, hopefully they will sign and agree to let you get all your deposit back (which, unless you misrepresented your financial situation in your purchase agreement or that yo have removed financial contingency, they should agree to let you get your money back). However, since this is a REO purchase which the banks sometime have their own purchase contract, you really should see what's in the agreement you signed to know whether you will get all your deposit back.

BTW, what does your agent say?

Good luck!
0 votes
Ryan Smith, Agent, Murrieta, CA
Sat Nov 13, 2010
If it's listed with a different agent then the contract was cancelled with the previous agent you have no deal. If your contingency period expired and you were not granted an extension then you have no deal, whether or not you signed a contingency removal. I would work on getting loan approval before trying again with this property or any other.

Good Luck!
Chris Blasic
0 votes
David Poulsen, Agent, San Francisco, CA
Sat Nov 13, 2010
It is very important to have the loan all ready to go with REOs or else you can run into these troubles.
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