Seller cancelled escrow hours before funding

What is the name of your state? California

The seller cancelled escrow because we didn't make the stated closing date. The funny thing is, we were waiting for him to perform at that time. It took him a month to even approve the appraisals (3 appraisals - two of ours and then we let him use his appraiser who couldn't come up any higher). By the time he approved the appraised price, it was already 15 days after the stated close date. After that, the inspection, repairs, walk-thru, and loan approval took place. By the time loan docs were signed, it was almost three months after the stated close date. The seller waited until hours away from funding to cancel. I was not notified until the next day, and was never warned. My realtor's risk management co. advised me (almost 3 weeks later) to request the funds from escrow, but they will not disburse them until the seller signs for approval. Neither my agent, the risk management co., nor the selling agent can get in touch with the seller for the signature. I can't get my money, I've lost time, and real estate prices have increased above my ability to buy. What can I do? It has been 5 weeks since the "cancellation" and no one has really done anything. We signed to handle disputes through arbitration, but I have been trying to follow the lead of my realtor and risk management, and we have gotten nowhere. How can I handle this myself, or can I? I do not know where to start and doubt that I can afford an attorney. They have my money.

[HomeGuru]

Originally posted by alerca
What is the name of your state? California

The seller cancelled escrow because we didn't make the stated closing date. The funny thing is, we were waiting for him to perform at that time. It took him a month to even approve the appraisals (3 appraisals - two of ours and then we let him use his appraiser who couldn't come up any higher). By the time he approved the appraised price, it was already 15 days after the stated close date. After that, the inspection, repairs, walk-thru, and loan approval took place. By the time loan docs were signed, it was almost three months after the stated close date. The seller waited until hours away from funding to cancel. I was not notified until the next day, and was never warned. My realtor's risk management co. advised me (almost 3 weeks later) to request the funds from escrow, but they will not disburse them until the seller signs for approval. Neither my agent, the risk management co., nor the selling agent can get in touch with the seller for the signature. I can't get my money, I've lost time, and real estate prices have increased above my ability to buy. What can I do? It has been 5 weeks since the "cancellation" and no one has really done anything. We signed to handle disputes through arbitration, but I have been trying to follow the lead of my realtor and risk management, and we have gotten nowhere. How can I handle this myself, or can I? I do not know where to start and doubt that I can afford an attorney. They have my money.

**A: you need an attorney to al least review your contract and advise you accordingly.

I'm going to call an attorney first thing in the morning.

I know I've waited longer that I should have. My real estate agents were very passionate about getting the board of realtors to go into arbitration. Now suddenly, it seems that there is nothing that they can help me with. Is there a time that this sort of legal action would be too late? What if this guy skips town? No one has gotten ahold of him.

I just wanted to see how I could help myself. I did not want to get an attoney and possibly dig myself deeper, unless I knew I had a really good chance. With my realtors backing out, I guess I lost some hope. I'll keep an update on this situation.

[HomeGuru]

Ok. Is there an arbitration clause in your contract?

Yes, there is an arbitration clause that we both signed.

[HomeGuru]

Ok, so what did your attorney advise?

He advised me to try to get the money out of escrow by paying the cancellation costs and then filing for small claims.

I have to wait for the owner of the escrow company to get back from vacation before I can do anything, though.

Now that would be poetic justic wouldn't it? You pay the cancellation fee, get your money back, sue the seller in small claims court, win then place a judgement lien against the same house you tried to buy.

I like the sound of that

[HomeGuru]

[quote]Originally posted by alerca
[b]He advised me to try to get the money out of escrow by paying the cancellation costs and then filing for small claims.

I have to wait for the owner of the escrow company to get back from vacation before I can do anything, though.

**A: why?