Lying agent and sellers

**housejunkie** · 05-25-2010, 03:13 PM

About one month ago, we signed a contract on a home. However, on the closing date, the sellers' agents said that the sellers did not wish to move out because they didn't wish to part with their home (this was a short sale). We were fine with that, and even felt sorry for them, so we agreed to push the closing date back a week. However, it has been a string of blatant lies ever since then. The agents would say that they have been able to acquire a home for the sellers (they're family friends), and promised that they would move out on a Sunday. However, when we went to the closing on that date, the agents said that the owners did not have time to move out, and asked to push the date to the Monday after. We agreed, but again, they pushed it back a week to the next Monday, saying that they have absolutely acquired a home, and that it was real this time (admitting that the previous times had been fake). They once again asked for an extension to the end of this week, but when we called their agent, he replied with "I'm sorry, I'm in a conference. I'll call you back later," which is what he says every time he is trying to avoid us.

We have been informed that the same thing has happened to three other potential buyers, who have all backed out. These people are trying to drag it out as long as possible, with no intention to actually sell the home and move out. They have been living there without paying their mortgage for months.

Is there anything illegal in their actions? Would they be investigated if we report them? Thanks!

**markbrian** · 05-26-2010, 06:47 AM

If you agreed to delaying the closing, why agree to the delay unless you are always going to be happy with that decision?

If you are not willing to agree to another extension, just say no. But who is holding your EM, and will you be able to get it back?

It does sounds like they are trying to drag things out and maybe your agent, if you have one, or a local real estate attorney can look at the contracts and help you. There may be details that would help us to better understand your situation.

It sounds to me like the seller may be delaying because they are trying to work out things with the bank so that they can stay.

No legal advice given.

**maui** · 05-27-2010, 02:07 AM

Sure, the behavior of the listing agent and seller may be unethical (based on what you explained, I'm sure there are more details to this). If I was your buyer's rep I would advise you NOT to agree to the extension, plain and simple.

**Greg** · 05-27-2010, 07:20 AM

This wouldn't be the first time a seller used the pretense of a short sale to delay the foreclosure.

On the bright side, you will probably be able to get the house for an even better price when it comes back on the market as a foreclosure.

**BoiseRealEstateSoup** · 06-01-2010, 06:54 AM

It sounds like they are just trying to get more free housing. Since they have your offer, the bank isn't going to foreclose so quickly and if the seller can delay you and the bank, then why wouldn't they?

Short sales are complicated little monsters that rarely go the way everyone would like them to.

I would call your state Real Estate Commission and talk with the enforcement division and see what you can do. You should also have your agent get his/her broker involved.

Greg is right though: It would be poetic if you were able to get it for even less when it hit the foreclosure date!