Need legal advice...any RE Lawyers out there?

**suzq** · 06-09-2008, 03:17 PM

I was in escrow with an investment company for 4 months. At the end of the escrow I was told (1 day before closing) that they could not close (they couldn't get the loan) but a member of their team was going to buy the place (a tear down) on an FHA. The paperwork was changed to reflect the new buyers name. He was approved for the loan-but after 30 additional days he never came up with the down either.

Now for my question. For the next 4 months these folks kept telling us they were close to closing, "have faith" "it won't take much longer" etc., but after the 4 additional months I finally called a halt to the nightmare. We agreed to cancel the second escrow and the cancellation stated their was NO deposit to be returned to the buyer or passed on to me. I asked the escrow company why the cancellation stated their was NO depost on the second escrow...they said the instructions said that the buyer would "hand" the deposit to escrow company and he never did! My realtor (he handled both the buyer and seller) never told me this, nor did the buyer, nor did the escrow company. I have spent lots of cash (mortgage, water, taxes etc.) in the 4 months I waited (and trusted them at their word) and I really feel I should get my expenses back from the deposit. I had already moved out and was paying for my new place plus all the expenses on my empty property. Ouch!

I know I've been had...but I was just wondering if I could take this situation to a real estate lawyer to see if I could persue getting something back to make me feel better about this whole mess. I have also lost value in the property (I just re-listed at $50k+ less in the original sale price 8 months ago). By the way the original real estate salesman had the, (well you know) to want the second listing as well...it didn't happen as I learned a very valuable lesson about one salesman handling both parties, especially when he had worked with the investment team for the last few years....

Anyway, if any of you have had some experience with this kind of thing...would you mind telling me what you think?

Sorry to be so long winded...I really appreciate any info. or advice to can offer. I live in So. Cal.

Thank you ~ Susan

**jamesww** · 06-09-2008, 03:36 PM

Originally Posted by suzq

I was in escrow with an investment company for 4 months. At the end of the escrow I was told (1 day before closing) that they could not close (they couldn't get the loan) but a member of their team was going to buy the place (a tear down) on an FHA. The paperwork was changed to reflect the new buyers name. He was approved for the loan-but after 30 additional days he never came up with the down either.

Now for my question. For the next 4 months these folks kept telling us they were close to closing, "have faith" "it won't take much longer" etc., but after the 4 additional months I finally called a halt to the nightmare. We agreed to cancel the second escrow and the cancellation stated their was NO deposit to be returned to the buyer or passed on to me. I asked the escrow company why the cancellation stated their was NO depost on the second escrow...they said the instructions said that the buyer would "hand" the deposit to escrow company and he never did! My realtor (he handled both the buyer and seller) never told me this, nor did the buyer, nor did the escrow company. I have spent lots of cash (mortgage, water, taxes etc.) in the 4 months I waited (and trusted them at their word) and I really feel I should get my expenses back from the deposit. I had already moved out and was paying for my new place plus all the expenses on my empty property. Ouch!

I know I've been had...but I was just wondering if I could take this situation to a real estate lawyer to see if I could persue getting something back to make me feel better about this whole mess. I have also lost value in the property (I just re-listed at $50k+ less in the original sale price 8 months ago). By the way the original real estate salesman had the, (well you know) to want the second listing as well...it didn't happen as I learned a very valuable lesson about one salesman handling both parties, especially when he had worked with the investment team for the last few years....

Anyway, if any of you have had some experience with this kind of thing...would you mind telling me what you think?

Sorry to be so long winded...I really appreciate any info. or advice to can offer. I live in So. Cal.

Thank you ~ Susan

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