broken contract

What is the name of your state?
Missouri

i signed a contract/offer for the home. the seller agreed to it and also signed. After the home inspection and appraisal was done and paid for the listing agent informed my agent that the property was going to be foreclosed on the same day as the closing date, and requested that we move up the closing date. We sent in writing an addenduem for a couple of repairs and also agreeing to move up the closing date. While awaiting the reply in writing (they gave verbal agreement and even did the repairs) the house was foreclosed on, a week and a half before the date they had told us. They signed the original contract agreeing to sell the house. Am I just out the inspection and appraisal fees, or do i have recourse? What about my earnest money which is in eschrow?

[HomeGuru]

Originally posted by nohome
What is the name of your state?
Missouri

i signed a contract/offer for the home. the seller agreed to it and also signed. After the home inspection and appraisal was done and paid for the listing agent informed my agent that the property was going to be foreclosed on the same day as the closing date, and requested that we move up the closing date. We sent in writing an addenduem for a couple of repairs and also agreeing to move up the closing date. While awaiting the reply in writing (they gave verbal agreement and even did the repairs) the house was foreclosed on, a week and a half before the date they had told us. They signed the original contract agreeing to sell the house. Am I just out the inspection and appraisal fees, or do i have recourse? What about my earnest money which is in eschrow?

**A: talk directly with the lender so that they know there is an offer and the deal is ready to close. Chances are they will accept the offer, stay the foreclosure and allow closing provided they get paid whole including court costs and attorney's fees.

[Souix]

Originally posted by nohome
What is the name of your state?
Missouri

i signed a contract/offer for the home. the seller agreed to it and also signed. After the home inspection and appraisal was done and paid for the listing agent informed my agent that the property was going to be foreclosed on the same day as the closing date, and requested that we move up the closing date. We sent in writing an addenduem for a couple of repairs and also agreeing to move up the closing date. While awaiting the reply in writing (they gave verbal agreement and even did the repairs) the house was foreclosed on, a week and a half before the date they had told us. They signed the original contract agreeing to sell the house. Am I just out the inspection and appraisal fees, or do i have recourse? What about my earnest money which is in eschrow?

***You should have gotten a title report showing the correct date the property was going to trustee sale. The Trustee records a Notice of Sale with the county where the property is located. Even if you did agree to move up the closing date, there was nothing in writing to change it. Did the lsiting agent have any communication with the bank to forstall the sale? I think you do have recourse, but imo it is with the realtors for doing such a sloppy job. You are entitled to get your earnest money back.

The reason why I say the Realtors did a sloppy job is that the listing agent should have known it was going to sale and advised your agent of an urgency. The sale date should have shown correctly on the title report. Foreclosure sales should always be negotiated with the bank's approval on all purchase agreements so the bank can see there is an actuall sale. I had one close just recently that was scheduled to go to sale on 2/5/02 but by myself and the listing agent paying the bank's per diem we were able to forestall the foreclosure another month. This is why I think your agents did a poor job.

My agent contacted the lender that was foreclosing the day of the foreclosure and asked them to wait so that we could close. They said no that they were afraid that the owner was going to declare bankrupsy. They next day both my agent and my mortage company contacted them asking them to sell directly to us for the cost and they said no.
The sellers say they are not putting anymore money into the house. The listing agent says that he lost money too and can't help how it turned out.

[HomeGuru]

Originally posted by nohome
My agent contacted the lender that was foreclosing the day of the foreclosure and asked them to wait so that we could close. They said no that they were afraid that the owner was going to declare bankrupsy. They next day both my agent and my mortage company contacted them asking them to sell directly to us for the cost and they said no.
The sellers say they are not putting anymore money into the house. The listing agent says that he lost money too and can't help how it turned out.

**A: then hire a real estate attorney to deal directly with the lender.

Thanks for your reply.

I guess my only other question is it is worth it pursuing if the sellers will agree to release my earnest money. Am I going to spend more money in attorney fees than the approx. $500 I spent in fees on the house?
I think I just feel that they (the sellers and the listing agent) misrepresented the situation and should be held responsible.

[Souix]

If you still want the place, do what HomeGuru suggests.

[HomeGuru]

Originally posted by nohome
Thanks for your reply.

I guess my only other question is it is worth it pursuing if the sellers will agree to release my earnest money. Am I going to spend more money in attorney fees than the approx. $500 I spent in fees on the house?
I think I just feel that they (the sellers and the listing agent) misrepresented the situation and should be held responsible.

**A: ask the attorney. My take is that you may end up spending another $1000-$2000 in legal fees if everything goes smoothly.