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Short Sale - Buyer Walked Out on Last Day of Extension

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  • 04-01-2010, 11:07 AM
    tm709
    Short Sale - Buyer Walked Out on Last Day of Extension
    My question involves small claims court in the state of: California

    I am short short-selling my home as-is and had to work very hard to get approval from my lenders. I am working with a Realtor who has also been helping to negotiate with my lenders and find buyers for my home.

    The 2nd mortgage would only go forward with a payout that was a couple grand more than the 1st mortgage agreed to pay them, so I had to cover the difference to get the deal to go forward (as I was advised to by my Realtor). I wired the money to the 2nd mortgage company, and seemingly everything was rolling along.

    After numerous delays due to the buyer, and having to request more than a couple extensions from the mortgage companies, on the final day of the deadline the 2nd had granted us, the buyer was to sign the loan documents. At this time the buyer claims he understood that I, the seller, was supposed to pay for all of the necessary repairs, then refuses to sign and walks out (this was not so, and was made very clear through several addendnums which we both have signed). Now deadlines have lapsed and I have lost the money I invested to sell the property.

    Do I have any chance of recouping my losses from this buyer in small claims court?

    Edit -- At the time the buyer was to sign the documents but was going to walk out due to his claim that he thought I would be paying for the repairs, my Realtor offered to forgo their commission to get the deal to go through, however the buyer wasn't interested.
  • 04-02-2010, 09:22 PM
    Mr. Knowitall
    Re: Short-Sale / Buyer Walks Out Due to Blatently False Premise and Deadline Lapses
    Does the buyer claim to have been exercising his right to cancel the deal based upon a contingency?
  • 04-03-2010, 12:36 AM
    tm709
    Re: Short-Sale / Buyer Walks Out Due to Blatently False Premise and Deadline Lapses
    Thanks for the reply. Everything I know is based on what my Realtor had told me. I have most of the documents that were signed by both parties and I don't recall any stating any contingencies. The original contract says that the closing costs and such were coming out of the money the banks would receive. The Termite document states that the buyer is responsible for repairs. As far as what's written, I don't see anywhere where the buyer can say that we went against anything.

    Please let me know if I need to get more information.

    Thanks!
  • 04-03-2010, 09:36 AM
    Mr. Knowitall
    Re: Short-Sale / Buyer Walks Out Due to Blatently False Premise and Deadline Lapses
    Find out from your real estate agent. If the buyer had a legitimate basis to withdraw from the contract, you have no basis for a lawsuit.
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