What is this mysterious “system” and what does it have to do with a binding contract?

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

The mysterious system of real estate sales!I had an interesting situation come up recently. A buyer had made a cash offer on a property owned by a quasi-government privately owned mortgage corporation. The offer was accepted, but the seller delayed in getting the executed contracts delivered.

And so the SELLER asked for an extension on the closing date to ensure enough time to get the title work done. The buyer agreed, the extension was executed, and then signed and stamped by all parties.

Here’s where the story gets interesting: On the day of closing, the buyer wires the money to the title company’s office. But after driving 50 miles, and after having done everything correctly, the buyer is told that the contract fell “out of the system,” and that the offer process would have to start all over again.

Of course I protested. I don’t care about this mysterious “system” and what’s in it and what is not. We had a perfectly good, legally binding contract already and I felt that it could compromise my client’s position to start over with a new contract.

The response I got was the typical” “Do you want to close or not?”

My client acquiesced, and we closed a week later. But the title company held all of the purchase money the whole time!

My client did not understand how he could have paid the money and not owned the house. He had worked hard all of his life and saved every penny to purchase a home for his family. He followed all of the rules. He didn’t try to “beat the system.”

Instead, the “system” beat him.

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Topic:
Home Buying
Location:
Georgia Coweta County Newnan
Groups:
Club Chaos
Diary of a Realtor
Realtors®
The Lounge at Active Rain
"Whacked"!!!
Tags:
reo properties
bank owned
quasigovernment mortgage corporations

Comments 16 New Comment

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Rainmaker
276,790
Kathryn Maguire
Serving Chesapeake, Norfolk, VA Beach
GreatNorfolkHomes.com (757) 560-0881

That is simply appalling!  I suppose the bank knew they had the power and just did not care.  They had the money...your buyer wanted the property...the person on the other end was making the same amount of pay whether you closed or not...a very sad situation indeed!

July 21, 2010 12:22 PM
Rainmaker
383,895
John Walters
Licensed in Louisiana
Frank Rubi Real Estate

Fell out of the system, hmmm.  Sounds to me like somebody screwed up.  I wonder if he could find a lawyer to ask for some money back for expenses, etc.  Probably not enough money to be made and most lawyers would not consider it worth the trouble.

Richard wait until they own and run healthcare.  What happens if we fall out of the system when we need healthcare most?

July 21, 2010 01:07 PM
Rainmaker
190,653
Lois Davies
Cape Coral & SW Florida
Century 21 Birchwood Realty, Inc.

I like Peggy's idea.  What system were they using, Equator?  "Do you want to close or not" iimplyingyou should be grateful you even had a closing is is appalling.  

July 21, 2010 03:47 PM
Rainmaker
1,655,073
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.
WHISPERING PINES REALTY

Richard...that is why we see so much black and blue colors at the closing table.

July 21, 2010 08:08 PM
Rainmaker
33,872
Stephanie Davis
Full-Service Real Estate
Carolina One Real Estate

Grrrrr! I've been in your shoes. Laws and rules don't seem to apply to the banks; they call the shots, they make up the rules as they go along.

July 22, 2010 09:33 PM
Anonymous
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Ambassador
1,620,124

Richard Weisser

Richard Weisser Coweta Newnan Homes for Sale
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Additional Information

Author Bio: Richard Weisser is a Georgia real estate broker, licensed auctioneer, and has been writing about Georgia Real Estate since 1999.

Coweta Fayette Real Estate offers opinions and helpful information to consumers and real estate professionals in the Coweta County Georgia area.

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