Seller Broke Contract - Any Advice?

[America Robles]

Hey everyone!! I've run into a major real estate issue and have called several different attorneys' offices waiting on call backs.

I know a lot of you have years of real estate experience and I'm curious to see anyone can give me some guidance or had something similar happen.

So, I was getting ready to close on a house when days before the closing. The seller's agent reached out to inform us that the seller owned more on the house than he thought and could not sell it at the price we originally agreed on. He also had a second lien on it.

(Not sure exactly what all he had going on, but I know it was several issues)

I was not going to go any higher! It's not my fault the agent didn't do her research.

Plus, I could not afford to have my monthly note go any higher.

The contract was signed at 97k sell price with 3% closing assistance.  They wanted to raise the price to 113k!! And take away CC

My agent tried to communicate with their agent to see if they would refund my inspection fees and appraisal fees, but they kept telling us he had no money.

We continued to try and make contact with them up until the day of closing. Their agent at this point is not responding to our calls or texts.

At closing, I brought the cashier's check and I signed all the docs just to show I upheld my end of the agreement.  I am currently out about 3k which may not be a lot to some, but it is to me. I also transferred my kids to another district and moved daycares. Maybe I jumped the gun on that, but I never imagined this to happen. :(

I was debating on even trying to take this to court, but I just can't let them get away with doing this to me and my family.

They also just listed the home back on zillow :/ Any advice?

[Jay Hinrichs]

Quote from @Brian Ellis:

Did you not get title insurance? If this is the case, be glad you didn’t take ownership on a property with a second lien. Who knows what else is going on.

Was it a mechanics lien? Taxes? There could be a number of things that you may be responsible for once you take ownership.

this is a case of the closing attorney or title company not running full date downs until way late in the game.. its common in some markets.. this simply would not happen on the west coast were title is run the day you open escrow and you have a full title commitment within 3 to 5 days.. ONce it came back with these title issues the deal gets re traded or it dies .. the contracts in most states if they are MLS Nar type contracts allow for seller to back out and buyer to back out and get EM returned if title cannot be cleared at the price your paying for it.

the only way this person would take title to liens is if the title company missed them and would be on the hook to clear them at their cost.. or she did her own closing with no title company or insurance and since there is a new lender involved they will want a lenders policy so that answer that quesiton.. to me this is simply a case of title company waiting to long into the process to run full title and do their date downs.