question on short sale transaction. help please.

[alexnjoanne]

What is the name of your state (only U.S. law)? CALIFORNIA

Hi, I have a situation which I would like to get some advice on. Here is what happened:
-we were in the process of purchasing a home from a short sale
-the home has 2 loans on it
-first loan was approved by the bank and had to be funded by 5/11/09
-second loan was also approved by the bank by a payoff (which was through escrow)
-the loan was funded on 05/08/09
-on that same day the second loan was sold off by the bank
-our realtor and loan agent said the first loan for extension had been taken care of
-both the loan agent and realtor was trying to get info on the second loan so that the funded loan can be recorded
-on 05/21/09 our loan agent told us that they have second loan's info and will be ready to close on 05/27/09.
-on 05/23/09, our realtor told us the house was auction off and bought by another party..
-the realtor told us they never got the updated extention from the listing agent.
-we cannot get our money back on the expenses we paid up front
Can we take any legal action?

[HomeGuru]

Originally Posted by alexnjoanne

What is the name of your state (only U.S. law)? CALIFORNIA

Hi, I have a situation which I would like to get some advice on. Here is what happened:
-we were in the process of purchasing a home from a short sale
-the home has 2 loans on it
-first loan was approved by the bank and had to be funded by 5/11/09
-second loan was also approved by the bank by a payoff (which was through escrow)
-the loan was funded on 05/08/09
-on that same day the second loan was sold off by the bank
-our realtor and loan agent said the first loan for extension had been taken care of
-both the loan agent and realtor was trying to get info on the second loan so that the funded loan can be recorded
-on 05/21/09 our loan agent told us that they have second loan's info and will be ready to close on 05/27/09.
-on 05/23/09, our realtor told us the house was auction off and bought by another party..
-the realtor told us they never got the updated extention from the listing agent.
-we cannot get our money back on the expenses we paid up front
Can we take any legal action?

**A: yes you can take legal action but I am not sure you even have a case.