Please help! Realtor misrepresentation & loss mitigation

[DaddysLilAngel]

What is the name of your state? CA

Please help!

I listed a home of mine in October 2007 in an attempt to sell the property rather than loose it to foreclosure. It fell into Loss Mitigation in January 2008. I have been working directly with the lender to adjust payments, in a lender approved “work-out” program to help me keep the home.


My listing agent brought a buyer at the end of February. He was aware it was in foreclosure and pushed to sell the property, stating it was the best thing for me. I told him that I wanted to cancel the listing and really did not want to sell. He insisted that it was customary to counter and drew up counter-agreements and instructed me to sign the documents (although he never overviewed what I was signing) and even went as far to say that this [set of] contracts would not go through because there were sections that were not signed by the buyers.


Unfortunately, the buyers accepted the counter and the agents opened escrow immediately. When I spoke with my agent and advise him that this is not the direction I would like to go, he said that "it is no longer in his hands and that I now have legal issues with the buyers". He suggested the best thing to do is to communicate with the buyers directly. My listing agent did not even give me a copy of the “signed contracts” until 3/3/08 and they claimed we were under contact on 2/24/08. Is this legal??? I received proof of buyers funds and a “notice to perform” on 3/4/08, just the next day!


Thus, upon my agents’ suggestion, I wrote a personal correspondence begging them to let us keep our home. Again, the buyers’ response was that they fully intend to move forward and that it is better for me financially. The buyers attorney’s response to not wanting to sell was “breach of contract”, claiming that if we do not move forward with this signed contract they will sue!


Our mortgagor said I have no signing rights to the home while in the condition of Foreclosure. The bank must approve any and all transactions. When this was explained to the buyers, they again responded with “breach of contract” and sent me a lawsuit correspondence.


Please help! Financially I am just trying to keep our home and on our feet. I truly feel harassed and believe that the real estate agents are trying to take advantage of my situation. I know that I have been led astray and believe that I have rights to protect myself but just don’t know where to go or who to trust anymore.


Any guidance will help, as I am truly saddened that there are people in this world who would perform such acts.

[FlyingRon]

Originally Posted by DaddysLilAngel

I told him that I wanted to cancel the listing and really did not want to sell.

At this point you may have been liable to him for his commision.

He insisted that it was customary to counter and drew up counter-agreements and instructed me to sign the documents (although he never overviewed what I was signing) and even went as far to say that this [set of] contracts would not go through because there were sections that were not signed by the buyers.

It is customary to accept a offer or counter. I don't know what you mean by "overview" but it is YOUR job to read and understand what you are signing. Your signature on the counter is an offer to the other party. It wouldn't go "through" without the buyer's signature, but they of course are free to sign (accepting the offer).

Unfortunately, the buyers accepted the counter and the agents opened escrow immediately. When I spoke with my agent and advise him that this is not the direction I would like to go, he said that "it is no longer in his hands and that I now have legal issues with the buyers".

He is right. Brokers make sales, not break contracts. You have a legal contract with the buyer that his only obligation to now is to collect his fee.

He suggested the best thing to do is to communicate with the buyers directly. My listing agent did not even give me a copy of the “signed contracts” until 3/3/08 and they claimed we were under contact on 2/24/08. Is this legal??? I received proof of buyers funds and a “notice to perform” on 3/4/08, just the next day!

I don't know of any statutory delivery time to deliver the contracts back. They were effective the MOMENT the buyer signed them.

The buyers attorney’s response to not wanting to sell was “breach of contract”, claiming that if we do not move forward with this signed contract they will sue!

It is a breach. They are within their rights to sue.

Our mortgagor said I have no signing rights to the home while in the condition of Foreclosure.

I'm not sure that is true, but that just means you committed to a contract which you are incapable of delivering on. That's still a breach (and may be fraud if they prove intent).

Respond to the sellers lawyer indicating you are in foreclosure and you can't deliver clear title. If they insist on pursuing you for breach, then you need a lawyer.

[jpathfynder]

It is customary to accept a offer or counter.

or, and this is a big one, decline it.