Bad Mortgage Co & Buyer causing Delays

What is the name of your state? Indiana
I secured a buyer in August. We signed a purchase agreement in September. My agent and I have been getting the run around from the buyer and his mortgage company ever since. The loan officer and the owner of the mortgage company have been misleading and dishonest in their dealings with us. If we would have known the buyer was over leveraged and wanted unrealistic loan terms with constuction monies in it, we would have never agreed to wait. We had originally thought a couple weeks delay was quicker than relisting and waiting for a new buyer. I never thought the delay would be 4 months. Since that time, I have had severe financial difficulties.

The properties are two multi-units. I called for a manager and couldn't convince anyone I spoke to to manage the properties. The reasons varied from not enough units or they don't manage properties for sale. So I decided to not rent 3 of the units (it was only for a month, right?) and hoped the other 4 tenants would pay until close. One tenant was a concern.

Well, two tenants immediately quit paying. (But it was only a month, right?) And I transferred to New Mexico, so evicting was a major challenge. In my mind, I lost rents from 5 of the 7 units.

I paid for over $1000 in repairs the buyer wanted.

Two units, one occupied and one vacant were vandalized in December and needed 2 new windows, complete repaint and recarpet. Spraypaint on the walls and carpet. Trash was left in and out. I had to pay to correct the damage.

I purchased a house in New Mexico that needed major repairs. I had planned on hiring contractors to complete the work and move into the house in 30 days. No money = no contractors. I had to rent another house while my house is sitting gutted and I'm making mortgage payments.

On the 29th, is the absolute final day we are waiting for the first property to close. We already decided to the second property back on the market, but wanted the first sale to happen, hoping to get some equity out and relieve some of my difficulties.

Can I sue somebody (who) and have a chance to recover my costs? I filed a complaint with the BBB against the mortgage company (who joined BBB in august and now has 4 complaints aginst them) but was told since I wasn't the client, they can't help. Help!

[HomeGuru]

Sorry, you are out of luck.

Even with "time is of the essense" in the purchase agreement? I have read other postings where the buyer had recourse for delays with this statement. How come the seller isn't protected?

[HomeGuru]

You have no contractual relationship with the mortgage company. You have a contract with the Buyer so read your contract. If the Buyer was supposed to close by a certain date then you have grounds to sue for specifc performance. But, there most likely was a financing contingency which allows the Buyer to walk free if financing cannot be obtained. In my opinion, it is your agent that is also part of the problem.