What is the name of your state?What is the name of your state?AZ
Friday, April 15th: Sign announcing my Open House and Sale of my residence at 1401 E La Mirada Dr was placed in my yard. Buyer #1 said that he wanted to stop see the property and I showed him. He said he would be back on the weekend to make an offer.
Saturday, April 16th. Buyer #1 stopped by the house again and expressed his interest in purchasing the house for $330,000.00.
Monday, April 18th: I arrived at Seller’s Agent’s office to review and sign the contract. The contract had been signed by Buyer #1. I was dismayed to find out that the contract had been written to state that I had to pay Buyer #1 his 3% commission along with $5,000 of closing costs. My Agent and I prepared a counter offer stating that I was willing to pay the 3% commission fee but I would not pay the $5,000 closing costs. I signed the counter offer. The counter offer stated that Buyer #1 was to sign the contract and return a copy back to us by 5:00pm that day (4/18/05).
I arrived home and was visited by Buyer #2 who told me he wanted to purchase the property for $340,000 and he would not ask for closing costs. I told Buyer #2 that I thought I had a previous offer from Buyer #1 and if that fell through, I would consider his offer. Buyer #2 told me he would send a “back-up” offer to Seller’s Agent that day.
April 19th: We did not received the signed contract back and I was told by Seller’s Agent that the contract had “expired” if Buyer #1 did not sign and fax the document back at the stated time on the counter-offer addendum. My Agent told me she had tried calling Buyer #1 several times on 4/18 and on 4/19 and received no return call. I told My Agent that I got a verbal offer from Buyer #2 and it was better and if Buyer #1 did not return the phone calls, then I wanted to work with Buyer #2. I believe that My Agent tried to get a hold of Buyer #1 via phone call throughout the rest of the week and there was no response.
April 21nd: I told My Agent I was tired of waiting for Buyer #1. He wasn’t returning any of My Agent’s phone calls. Agent told me that the offer “expired” and I was under no obligation to work with Buyer #1. I asked Agent if she needed to send a cancellation letter to Buyer #1 and she said “no” as the contract form did not require a cancellation letter if a contract expired.
I signed Buyer #2’s copy of the contract and entered into an agreement with Buyer #2 on 4/21.
April 18th through May 23rd:
·Buyer #1 did not return the signed counter-offer contract.
·Buyer #1 did not return any phone calls by Seller’s Agent.
·I did not receive communication that Buyer #1 opened Escrow.
·I did not receive communication that Buyer #1 conducted an Inspection.
·I did not receive communication the Buyer #1 conducted and Appraisal.
·I did not receive and documents from Buyer #1’s Title Company including:
o Tax statement
o Privacy Statement
o Insurance Commitment
o Escrow Employment Agreement
o Etc.
May 20th: I received a phone call from Escrow Officer #1 inquiring about loan information. I told Escrow Officer #1 that I had already sent all my information to Escrow Officer #2. I mistakenly thought that Escrow Officer #1 and Escrow Officer #2 worked in the same office and there had been some miscommunication. Escrow Officer #1 told me he didn’t know a “Escrow Officer #2” in his office and I told him that I had received documents from Title Company #2 earlier in the month. Escrow Officer #1was confused saying he worked for Title Company #1 and wondered why 2 escrow companies were involved.
I called My Agent to ask what was “going-on”. She stated that the buyer had “changed title companies” and I would now be working with Escrow Officer #1 of Title Company #1 instead of Title Company #2.
I called Escrow Officer #1 back and gave him my Seller information (name, address, loan #, etc.). I also sent an online request to my mortgage lender asking that a pay-off quote be faxed to Escrow Officer #1. Escrow Officer #1 said he would prepare a settlement statement for me and fax it to me on Monday, May 23rd.
May 23rd: I received Escrow Officer #1’s settlement statement and noticed that the sale price was $330,000 and not $334,000. I then noticed that the buyer was Buyer #1. I immediately called Escrow Officer #1 and told him that I was NOT selling to Buyer #1 and Buyer #1 and that I had not heard from them since April 18th. I also told Escrow Officer #1 that since Buyer #1 did not sign the counter offer, his contract “expired” at 5:00pm on April 18th. I finally told Escrow Officer #1 that I never received a statement that escrow had even been opened.
I then called My Agent and told her what happened. She confirmed that I did NOT have a contract with Buyer #1 and I was free to close escrow with Buyer #2. Agent didn’t even know that Buyer #1 had opened escrow, as she did not have a receipt or notice. Agent called Escrow Officer #1 as asked for proof that escrow was opened. She received a letter from the title company stating that escrow was opened on 4/26 (8 days after the contract was faxed back to Buyer #1). She did not receive a copy of the check that was actually deposited.
May 24th: I received documents from Escrow Officer #1 for closing escrow with Buyer #1. I called Escrow Officer #1 and told him that I would not be signing these documents and I would not be closing escrow with Buyer #1. I then sent Escrow Officer #1 a confirmation letter stating this fact.
May 25th:
· I received a letter from Buyer #1 and Buyer #1 stating that he had
never received the counter offer.
o However- Escrow Officer #1 -representing Buyer #1 told Seller’s
Agent that he had a copy of the full contract to open escrow.
Escrow Officer #1 had both the original contract (signed by Buyer
#1 and myself) and the addendum contract (signed my just myself
without Buyer #1’s signature).
· Buyer #1 also stated that his transaction coordinator, has had
communications with Seller’s Agent (my agent) throughout the
process.
oAgent claims she has never received any phone calls from “Transaction Coordinator” and does not know who he is. I have never been told that a “Transaction Coordinator” is working on the escrow and have never received any communications from him either.
· Buyer #1 states in his letter that he has had contractors on the property to estimate repairs and remodeling and that he has had an appraisal done.
o At no time was either myself, or my agent, aware that contractors were on the property. No one called to ask for permission to enter the premises. Furthermore, I was unaware that an appraisal was being conducted as I had not received any phone calls or communications as such.
May 25th: I received my closing documents from Title Company #2 and signed them (Warranty Deed, etc.). I sent them back to Title Company #2. I was told that the documents from the lender were due into Title Company #2’s office by that morning and once she received my documents she could record the sale.
May 26th: Title Company #2 was ready to record the closure of the sale from myself to Buyer #2 when she received a letter from Buyer #1’s attorney stating that they plan to sue me. Title Company #2 will not close escrow because of the threatening letter. Seller’s Agent also received the letter stating that a lien had been placed on the property by Buyer #1. I have not been able to confirm this.
May 27th: Talked to Title Company #2 to find out if a formal lien had been placed on the property and why they were not recording the sale. Title Company #2 needs a formal letter from Title Company #2 which cancelled the escrow with Buyer #1 before they could proceed with recording the sale to Buyer #2.
In the meantime, Seller’s Agent had sent Title Company #2 the actual regulations, which stated that Buyer #1’s earnest money had not been deposited in a timely manner and escrow was not opened in accordance with the regulations. Agent is attempting to have Escrow Officer #1 at Title Company #1 write a cancellation letter to Title Company #2 but he is not willing to do this due to the possible lawsuit by Buyer #1.
Ultimately I hold my Agent responsible for this mess. She has repeated told me that
1.The contract with Buyer #1 had expired.
2.That the fact that Buyer #1 did not open escrow in a “timely manner” meant I had no contract.
3.That I had no lingering obligations to Buyer #1 and I was free to do business with Buyer #2.
4. She did not send a cancellation letter to Buyer #1 after I inquired about it on April 21st.
This entire mess will force me into severe financial hardship. I do not have the money to pay my mortgage anymore and I’m really afraid that if I don’t sell this house soon, I will be forced to file bankruptcy and let the bank foreclose on my house.
Here’s the options as I see them:
1. Cancel my contract with Buyer #2 and close with Buyer #1. In this case I lose approximately $20,000.00 on the sale but I avoid bankruptcy and foreclosure.
2. Wait for the mediation to take place and see what the mediator determines. This may not take place in time and if the mediator rules against Buyer #1, then there is a possibility of a trial.
Any recommendations (other than just shooting myself in the head) will be greatly appreciated.
Friday, April 15th: Sign announcing my Open House and Sale of my residence at 1401 E La Mirada Dr was placed in my yard. Buyer #1 said that he wanted to stop see the property and I showed him. He said he would be back on the weekend to make an offer.
Saturday, April 16th. Buyer #1 stopped by the house again and expressed his interest in purchasing the house for $330,000.00.
Monday, April 18th: I arrived at Seller’s Agent’s office to review and sign the contract. The contract had been signed by Buyer #1. I was dismayed to find out that the contract had been written to state that I had to pay Buyer #1 his 3% commission along with $5,000 of closing costs. My Agent and I prepared a counter offer stating that I was willing to pay the 3% commission fee but I would not pay the $5,000 closing costs. I signed the counter offer. The counter offer stated that Buyer #1 was to sign the contract and return a copy back to us by 5:00pm that day (4/18/05).
I arrived home and was visited by Buyer #2 who told me he wanted to purchase the property for $340,000 and he would not ask for closing costs. I told Buyer #2 that I thought I had a previous offer from Buyer #1 and if that fell through, I would consider his offer. Buyer #2 told me he would send a “back-up” offer to Seller’s Agent that day.
April 19th: We did not received the signed contract back and I was told by Seller’s Agent that the contract had “expired” if Buyer #1 did not sign and fax the document back at the stated time on the counter-offer addendum. My Agent told me she had tried calling Buyer #1 several times on 4/18 and on 4/19 and received no return call. I told My Agent that I got a verbal offer from Buyer #2 and it was better and if Buyer #1 did not return the phone calls, then I wanted to work with Buyer #2. I believe that My Agent tried to get a hold of Buyer #1 via phone call throughout the rest of the week and there was no response.
April 21nd: I told My Agent I was tired of waiting for Buyer #1. He wasn’t returning any of My Agent’s phone calls. Agent told me that the offer “expired” and I was under no obligation to work with Buyer #1. I asked Agent if she needed to send a cancellation letter to Buyer #1 and she said “no” as the contract form did not require a cancellation letter if a contract expired.
I signed Buyer #2’s copy of the contract and entered into an agreement with Buyer #2 on 4/21.
April 18th through May 23rd:
·Buyer #1 did not return the signed counter-offer contract.
·Buyer #1 did not return any phone calls by Seller’s Agent.
·I did not receive communication that Buyer #1 opened Escrow.
·I did not receive communication that Buyer #1 conducted an Inspection.
·I did not receive communication the Buyer #1 conducted and Appraisal.
·I did not receive and documents from Buyer #1’s Title Company including:
o Tax statement
o Privacy Statement
o Insurance Commitment
o Escrow Employment Agreement
o Etc.
May 20th: I received a phone call from Escrow Officer #1 inquiring about loan information. I told Escrow Officer #1 that I had already sent all my information to Escrow Officer #2. I mistakenly thought that Escrow Officer #1 and Escrow Officer #2 worked in the same office and there had been some miscommunication. Escrow Officer #1 told me he didn’t know a “Escrow Officer #2” in his office and I told him that I had received documents from Title Company #2 earlier in the month. Escrow Officer #1was confused saying he worked for Title Company #1 and wondered why 2 escrow companies were involved.
I called My Agent to ask what was “going-on”. She stated that the buyer had “changed title companies” and I would now be working with Escrow Officer #1 of Title Company #1 instead of Title Company #2.
I called Escrow Officer #1 back and gave him my Seller information (name, address, loan #, etc.). I also sent an online request to my mortgage lender asking that a pay-off quote be faxed to Escrow Officer #1. Escrow Officer #1 said he would prepare a settlement statement for me and fax it to me on Monday, May 23rd.
May 23rd: I received Escrow Officer #1’s settlement statement and noticed that the sale price was $330,000 and not $334,000. I then noticed that the buyer was Buyer #1. I immediately called Escrow Officer #1 and told him that I was NOT selling to Buyer #1 and Buyer #1 and that I had not heard from them since April 18th. I also told Escrow Officer #1 that since Buyer #1 did not sign the counter offer, his contract “expired” at 5:00pm on April 18th. I finally told Escrow Officer #1 that I never received a statement that escrow had even been opened.
I then called My Agent and told her what happened. She confirmed that I did NOT have a contract with Buyer #1 and I was free to close escrow with Buyer #2. Agent didn’t even know that Buyer #1 had opened escrow, as she did not have a receipt or notice. Agent called Escrow Officer #1 as asked for proof that escrow was opened. She received a letter from the title company stating that escrow was opened on 4/26 (8 days after the contract was faxed back to Buyer #1). She did not receive a copy of the check that was actually deposited.
May 24th: I received documents from Escrow Officer #1 for closing escrow with Buyer #1. I called Escrow Officer #1 and told him that I would not be signing these documents and I would not be closing escrow with Buyer #1. I then sent Escrow Officer #1 a confirmation letter stating this fact.
May 25th:
· I received a letter from Buyer #1 and Buyer #1 stating that he had
never received the counter offer.
o However- Escrow Officer #1 -representing Buyer #1 told Seller’s
Agent that he had a copy of the full contract to open escrow.
Escrow Officer #1 had both the original contract (signed by Buyer
#1 and myself) and the addendum contract (signed my just myself
without Buyer #1’s signature).
· Buyer #1 also stated that his transaction coordinator, has had
communications with Seller’s Agent (my agent) throughout the
process.
oAgent claims she has never received any phone calls from “Transaction Coordinator” and does not know who he is. I have never been told that a “Transaction Coordinator” is working on the escrow and have never received any communications from him either.
· Buyer #1 states in his letter that he has had contractors on the property to estimate repairs and remodeling and that he has had an appraisal done.
o At no time was either myself, or my agent, aware that contractors were on the property. No one called to ask for permission to enter the premises. Furthermore, I was unaware that an appraisal was being conducted as I had not received any phone calls or communications as such.
May 25th: I received my closing documents from Title Company #2 and signed them (Warranty Deed, etc.). I sent them back to Title Company #2. I was told that the documents from the lender were due into Title Company #2’s office by that morning and once she received my documents she could record the sale.
May 26th: Title Company #2 was ready to record the closure of the sale from myself to Buyer #2 when she received a letter from Buyer #1’s attorney stating that they plan to sue me. Title Company #2 will not close escrow because of the threatening letter. Seller’s Agent also received the letter stating that a lien had been placed on the property by Buyer #1. I have not been able to confirm this.
May 27th: Talked to Title Company #2 to find out if a formal lien had been placed on the property and why they were not recording the sale. Title Company #2 needs a formal letter from Title Company #2 which cancelled the escrow with Buyer #1 before they could proceed with recording the sale to Buyer #2.
In the meantime, Seller’s Agent had sent Title Company #2 the actual regulations, which stated that Buyer #1’s earnest money had not been deposited in a timely manner and escrow was not opened in accordance with the regulations. Agent is attempting to have Escrow Officer #1 at Title Company #1 write a cancellation letter to Title Company #2 but he is not willing to do this due to the possible lawsuit by Buyer #1.
Ultimately I hold my Agent responsible for this mess. She has repeated told me that
1.The contract with Buyer #1 had expired.
2.That the fact that Buyer #1 did not open escrow in a “timely manner” meant I had no contract.
3.That I had no lingering obligations to Buyer #1 and I was free to do business with Buyer #2.
4. She did not send a cancellation letter to Buyer #1 after I inquired about it on April 21st.
This entire mess will force me into severe financial hardship. I do not have the money to pay my mortgage anymore and I’m really afraid that if I don’t sell this house soon, I will be forced to file bankruptcy and let the bank foreclose on my house.
Here’s the options as I see them:
1. Cancel my contract with Buyer #2 and close with Buyer #1. In this case I lose approximately $20,000.00 on the sale but I avoid bankruptcy and foreclosure.
2. Wait for the mediation to take place and see what the mediator determines. This may not take place in time and if the mediator rules against Buyer #1, then there is a possibility of a trial.
Any recommendations (other than just shooting myself in the head) will be greatly appreciated.