Auction.com seller (bank) backs out of signed contract.

Auction.com seller (bank) backs out of signed contract.

Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes

Ive done dozens of Auction.com deals but this was a first.

After being under contract for 50+ days with no contingencies I received and email that the seller for the property I was ready to close on has now backed. Auction.com said they didn't give a reason. EM deposits were in everything was set to close. Do I have any recourse to make them close?

I spent a lot of time prepping this deal and passed on other deals while this was under contract so it was a bummer.

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  • Real Estate Agent · Fresno, CA · Member since 2017 · 2 posts · 0 votes
    6y

    How did it turn out?

  • Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes
    6y

    The bank actually relisted the house on xome and I won it for the same price just closed last week...

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    6y

    But for others, to your original question....no, you have no recourse....the bank addendums in every REO sale give them the right to cancel the contract for no reason whatsoever, simply returning your EM. Usually, this is because they found some title issue...last one I saw they failed to name the junior lien in the foreclosure, discovered it 3 days before they were scheduled to close on the sale of the reo.

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