Here is a hum dinger of a question...
successfully negotiated a triple lien and brought it in at a great price to an all cash buyer...buyer screws around and submits a crap addendum three days prior to closing drops the price by 100,000, seller signs on it, bank rejects...
Listing agent and buyers rep start the addendum games, and not one single addendum sticks, there are never any notices to perform involved etc.
Long story short...buyer delayed the closing until the first lien said, they have had it...the first sends a note stating that we can only keep a file open for 90 days, and we are removing this case from the active side because 90 days have elapsed. Either re-submit or place the house back up for sale.
Seller agrees to allow buyer to retain all of their deposit, buyer refuses to sign cancellation instructions...and instructs buyers lawyer to callI have never seen this one...any one else ever heard of this?
The contract will outline remedies for default. If the contract is no longer valid then the fact that the buyer won't sign a release really has no baring on anything. He can't force the seller to sell and certainly not when the lenders don't agree to the short sale under current terms and conditions.
But of course I am NOT an attorney and this is just my opinion.
I think your right! Thank you Brian!! However in California Escrow has to have signed cancellation instructions before the escrow can officially flop...without both parties signing off on the cancellation instructions the asset stays in limbo, the seller cant enter escrow again with a new buyer...while this one is pending.
Never have I seen a case where the buyer refuses to sign cancel docs, when the seller has agreed to give back all of the deposit, even though seller has perfect grounds to keep it all....Only in California is all I can say!!
The short sale is contingent on approval of the lienholders. The lienholder has revoked their approval so therefore the contingency takes over. That deal is dead. The Escrow company legal team should be able to help you out.
Newport Beach & Palm Desert CA
I also agree with you...once the servicer for any lien walks, rescinds or other...thats it...game over.
I still can not figure out why the buyer on this case is having his lawyer be such a jerk. The lawyer has no grounds whatsoever...it boggles the mind on occasion. :-) Take care and have a great weekend.
Buyer probably thinks if he can tie it up long enough that you can't resell it before the auction, he/she can pick it up there for a lot less and you won't get to sell it.
Get it resold and open escrow / title at another company....
Haaa...that crossed everyone's mind too...it appears that the buyer may be a little vindictive, and CHEAP...i mean really...I have seen 10 grand maybe 20 grand in last minute price reductions just to see if they fly...but a full on 100 grand...eeeeyeow!
I have a feeling on Monday morning if the seller has not been told they are getting the cancellation docs, the seller may try and rescind the cancel instructions and issue a new one requesting all of the EMD to be withheld. That should get some attention. Who knows...like I said this is California...the breeding ground for the unique, weird and things that just make ya go GEEEEEEZ.
As far as getting resold, the seller wants to wait until escrow fully cancels out, before seller goes at this fun time yet again.
I'm in California, and I had a similar situation. I did the same thing. The buyer wouldn't sign cancellation instructions, so we opened escrow with another buyer at another escrow company. We had no trouble closing.
Thanks Laura...What happened to the EMD?
Did Escrow eventually send the buyers back their EMD?
After we closed, I let the buyers agent know that the seller was kind enough to sign the cancellation instructions, and if the buyer wanted his money, all he needed to do was sign and escrow would refund it. Otherwise, it would just sit there forever. They signed the next day and got their money back. In your case, although there was not a notice to perform, there were escrow instructions with a specific price, terms and closing date. The entire contract was subject to lender approval. I would think they can still send a notice to perform. See RPA page 5 - #14c. Just off the top of my head, I would send it stating failure to remove contingencies and failure to close escrow on time. The escrow instructions should have said "close on or before....". If there has not been an extension of time addendum to the escrow instructions, then the seller may not even need to give the notice. Was there an addendum made to the escrow instructions regarding the extension of the closing date and price change?. IMHO the buyer agreed to a price and closing date. He didn't close according to the escrow instructions, so it's over....period ! I'm not an attorney, but I don't see where a buyer can go with this. I also would not have let my seller sign the request for a price change :)
Laura, you are so Awesome...Thank you!!
I still can not figure out why the sellers rep had seller sign. Maybe it was dollar signs in the eyes...have no idea...I will be certain to update this discussion when something develops.
**No there was never an addendum made nor was there never an extension of time signed** And no there was never an addendum made to the escrow instructions as to a change of closing date or price**
Thanks again Laura, Have a Fabulous weekend!!
Haha.. that's a good one!