Helpless and Confuses. (short sales, foreclosure, lease)

[gvi77]

Well, here is my sticky situation. I'm currently renting a short sale home and the bank has excepted my offer. We received the HUD statement and the acceptance letter from the bank through my realtor and we agreed to all the terms on the HUD statement. The property owner happens to be the listing agent as well. I have put $30,000 in an escrow account for this home as well. Since we were expected to close a week after the rent was due, the home owner/listing agent/landlord is trying to take the pool equipment and the landscaping from the property but what she is really trying to do is get $$$ out of me. I gladly told her she could pick up the landscaping and the pool equipment but I was not going to be extorted in paying her from not taking these items. Since she would gain no commission from the sale, she has threatened me of not showing up for the closing and is now has threatened to evict me from this property. I have a family and we have been settled in this home now for 4 months. To make matters worse, foreclosure papers were sent in the mail and the auction date is set in 3 weeks!!! What are my options as a cash qualified buyer who has a bonded contract between the seller, buyer and the bank? Should we just try to bid for the property when it goes to auction in 3 weeks? Do I have any rights because the seller is threatening to back out of the deal because she cannot get any money out of me. Please your thoughts and options is appreciated.
Thanks

From a hopeless and confused family of 6.

[floridagirl2010]

Have you reached the point in your contract where you can walk away and still get your earnest money back? Short sales can be dicey, but there are many, many, many houses out there. Get yourself a moving van.

I'd definitely consult an attorney and probably report her to the Board of Realtors. I also contact your negotiator for the bank about her actions. They don't want to see this fall through because it will cost them a lot more money if the home goes into foreclosure. It's a buyer's market.

We just bought a short sale and didn't experience what you are but it definitely wasn't perfect.

[gvi77]

Thanks for the reply. From what my realtor states, once the bank accepts the offer, it's a bonded contract and If I walk away now, I will lose the $30000 deposit. I will try to contact the negotiator tomorrow and see what they can do but from what I understand a home owner is still a home owner.

[skylinet]

You live in the property already? Do you have a lease if you do? When are you scheduled to close? You still have the right to inspect the property prior to closing.
Did you put the 30k down after bank acceptance?
If the seller backs out of the sale you should get your escrow back. It wouldn't be too smart for them to back out though.
I'd probably threaten them that you are going to report them to FREC.

[gvi77]

Yes I have been living in the property for the last 4 months and have a month to month lease. We are still waiting for a closing date from the title company and we waived our right to inspect prior to closing. The down payment was put into escrow when we submitted our contract 3 months ago. I understand about getting the escrow back if the seller backs out of the deal. Why wouldnt it be to smart of sellers to back out of the deal now? My realtor is going to report the seller/realstate agent to the FREC but it looks like I will have to take my chance on bidding on the house at foreclosure. It's amazing that the cash buyer and the bank is ready to purchase but the seller is holding up the process even after to agreeing with the terms on the contract.

[Lilybeans]

I am always amazed when a legal question concerning contracts and property rights comes up, and a lawyer has not been consulted. What are you waiting for?

[gvi77]

Thanks for the advice. We just found this out yesterday and I was doing some research and came across this forum. I wanted to see if a buyer has any type of rights when purchasing a short sale offer.
Thanks