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Could anyone pls give me some advice on my situation? I am in the process of buying a bank owned property located inside the loop. yesterday, the title officer told me that someone just filed a lawsuit against the bank claiming that she is the buyer of that house. The title officer said the deal can't move forward until it's settled. He sent me all the documents that her attorney submitted to the court as evidence, the contract was signed by her, nobody in the bank ever signed on it. It doesn't seem like a valid contract to me because a valid contract needs to be signed by both seller and buyer, right? In addition, I won the house by going through the bidding war and my offer is more than $30k higher than hers.
My orignial closing date is 5/10. I've bought all appliances (holding in a store), scheduled moving company, notified my apartment office regarding my move... Now, it doesn't look like the lawsuit will be settled before 5/10. I really like the house but i dont know how long i have to wait to close the house.
does anyone have a clue on what shall i do next? Will my contract expire after 5/10? Shall i tell my loan officer to stop everything on the loan? What about the rate I paid to lock for 30 days from 4/10?
You need the advice of a good real estate attorney. (S)He can look over all your documentation and advise you appropriately. It will be a couple hundred dollars well spent in my opinion and could possibly save you money down the road, not to mention a lot of time and hassle trying to get this thing worked out on your own.
Could anyone pls give me some advice on my situation? I am in the process of buying a bank owned property located inside the loop. yesterday, the title officer told me that someone just filed a lawsuit against the bank claiming that she is the buyer of that house. The title officer said the deal can't move forward until it's settled. He sent me all the documents that her attorney submitted to the court as evidence, the contract was signed by her, nobody in the bank ever signed on it. It doesn't seem like a valid contract to me because a valid contract needs to be signed by both seller and buyer, right? In addition, I won the house by going through the bidding war and my offer is more than $30k higher than hers.
My orignial closing date is 5/10. I've bought all appliances (holding in a store), scheduled moving company, notified my apartment office regarding my move... Now, it doesn't look like the lawsuit will be settled before 5/10. I really like the house but i dont know how long i have to wait to close the house.
does anyone have a clue on what shall i do next? Will my contract expire after 5/10? Shall i tell my loan officer to stop everything on the loan? What about the rate I paid to lock for 30 days from 4/10?
Thanks in advance!!
get a good real estate lawyer- contract law can be complicated.
If you've got a valid signed contract from the bank to buy the place, then I'd be calling them up and "suggesting" that they need to act in good faith to honor the sale.
Somebody out of left field with a contract offer that wasn't accepted by the bank is worthless. Even if they claim they had a verbal commitment to go through on that deal, it isn't valid until it's accepted and signed by the seller (bank).
If the bank has accepted an earnest money deposit from you on this property, then they have all the more reason and requirement to perform in good faith as you have by going forward with your end of the deal. This isn't to say that there aren't other possible "outs" for them, but accepting your contract offer in writing and your money places a great deal of legal responsibility upon the bank to perform. They can't just blow off your deal and cause you a lot of expense and inconvenience "just because".
Was there an broker involved in this deal? They should be your first line of advocacy to get this worked out, and fast. That's what their commission is all about.
IF there isn't a broker, then initiate the contact with the bank and demand that they perform per the valid contract you have. There's nothing in there that prevents them from going forward with your deal as written and the burdens of the other "deal" are their problem ... not yours. IF need be, close the house in escrow and let the bank clear the title for the title insurance while you proceed to get your loan, close, and move in ... in good faith.
You may have to take you request up to a higher level in the bank. Don't hesitate to call upon VP's, the Manager, the President, or ... ultimately ... the Federal Banking authorities under which the bank is chartered. You'd be surprised how much the bank will want to satisfy your contract requirements when they're under the threat of bringing the feds in with a legitimate complaint against the bank and it's officers. These days, there's personal liability for the banks performance in addition to the corporate entity. Don't forget to call your state banking commissioner, too. They may be very interested in the goings on ....
If a few phone calls doesn't give you the answers you need and progress, then it's going to be time to call in the dogs, er ... real estate lawyer. Once things deteriorate to that level, however, IMHO .... only the lawyers win.
Since there has been a lawsuit filed by the other side (obviously they have an attorney), and the title company can't proceed, then it sounds like a "call to the bank" isn't going to cut it. Most of these deals go through the REO network, and it can literally take weeks just to get a fully executable contract. There are several parties to these deals (on the bank side) and trying to get all the paperwork finalized is a huge headache.
Somebody probably messed up somewhere along the line (in the bureaucratic scheme of things). If the other "buyer" has attorney representation and topdowntx wants to hang in there, then his interest would be served best by obtaining legal counsel. It really shouldn't be a big fee for an initial consultation to just sit down with the atty and have him look over the contract, escrow docs, etc. Now if things get complicated at that point, i.e. countersuit, etc, then topdowntx might want to reconsider his options.
first off I can't see where it would be valid if the bank didnt sign her contract
secondly no it doesnt expire if you go past your closing date contracts don't die
I don't know Texas law, but I do know what's happened to me in Colorado and Wyoming. The bank will be very interested in protecting themselves and their obligation to you if they have accepted your contract and your money.
Start by making the calls to the bank. You may find out that they'll clear things up for you.
Just because another interested party has retained counsel doesn't mean they have a case or that you should be adversely affected by the situation.
The bank has a very strong interest if they've accepted your contract and earnest money to fulfil their obligations. Let them worry about the other stuff, it's their problem ... not yours.
Once you get an attorney involved on your behalf, the bank can no longer deal with you. They must go through your counsel by professional ethics and legal procedure. It will be very messy, difficult, and expensive for you if that's the path you choose from the outset at this point.
Unless the bank is willing to proceed it is likely you should give it up. Consult a lawyer to fully determine your rights and future possible actions. But I would think any course but abandoning ship is not rational.
If the bank does refuse to proceed keep careful records of what it costs you and then go after the bank for them. They are a party to a contract and are required to proceed. If they don't meet their committments sue them. If your loses are reasonable you should be able to go after them in small claims court.
But the important message...get on with your life. These things can run 30 days to years. And you don't have a stake that would make you ride it out.
As I am now reading through the detailed contract and addendems that I signed, it looks like the bank is being well protected. They can terminate the contract at any time w/ any reason without any additional obligation but refund my $4500 earnest money. It's sooo unfair to me. Will the bank uses those docu against me if I end up sue them?
I am not sure my agent can help me on anything on this case. he told me today that regardless this deal go through or not, he will get his commission from the bank anyway. Is that true? How could that happen? Also, my loan officer complained that she was badly insulted by my agent because he said the docu she asked for was nonsense and asked her to shutup. Now she is filing a claim against him to texas realtor association... I realized how important it is to have a qualified agent. Sometimes friend's referral may not be a good thing...
Sorry, topdown ... but if the bank has such a wide open clause to walk away from the contract as you describe, then you're out of the picture if that's their choice.
Probably best at this point to take your deposit back and move on to something else with all the resources you've put together.
Save your dough for something besides lawyer's fees. The only case you'd have now would be to establish that the bank had you sign away rights to the contract which deprived you of your rights and you shouldn't have had to do so to enter into a contract with the bank for the purchase. It's a very complex argument, and it's just as likely to go in your favor in court as not. The only thing you'd know for sure up front is that it would take a lot of paid legal time and a long calendar time to bring your case. Assuming that you win that case, then you'd still have to prove all your actual direct damages and losses ... you'd likely have little chance of recovering your costs of going after the bank.
IMO, your broker did a terrible job for your interests by allowing you to sign a contract where the seller could get out for any reason at any time .... knowing that you'd be operating in good faith and sustaining significant routine expenses in preparation for your move.
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please-
Thank you all for your responses!
Will the bank uses those docu against me if I end up sue them?
