REO Prop Descr Error: Bank cancel's purchase agreement - HELP!

[Leigh Allison]

Entered into Agreement to Purchase REO-owned property in January (post foreclosure), but questioned property description as provided in sale docs. Wasn't until formal property survey resulted in obvious problems with legal description that seller abruptly "cancel's" the sale stating their need to "fix the property description issues". No one from seller (not REA, or other rep) has been in contact with me since and I cannot find someone with seller to get any status/info from.

I did not cancel MY Agreement to Purchase, therefore (legally) , I still have a contract with seller.  My earnest money is still being held by title company and I have $$$ invested in buyer expenses.  I WANT the property - but I cannot find anyone who will talk to me or my lawyer!  It has been 8 months now -- What can I do!?! 

[Phil Z.]

Read the Bank Addendum .. I gaurantee it says they can cancel for any reason without notice.  This is usually only exercised in cases where they can not legally sell the property due to foreclosure process errors.  It's very possible that they determined they did not have legal authority to excercise a contract due to a problem with their transfer from the foreclosure having to be corrected/re-done.

I would try to sit tight and make sure the listing agent knows you still want the property.