Recourse for a failed transaction

8 Replies

I know closings fall through and while I've never had one, I'm pretty sure one of my sales is going to fall through. We've done everything we can to both be flexible and extend the closing but also demanding updates as they go.  The buyers realtor and mortgage lender have been the most unprofessional people I've ever encountered in this arena.  They've really done a disservice to the buyers but have completely screwed this transaction up on follow up, meeting deadlines, and communicating.  Other than the earnest money, is there any recourse with Lenders and realtors?    I'm just so frustrated that these people take no responsibility nor do they seem to even care... For shitsake these people will make money and they just don't care.  Never mind that this has cost me money and forced me to rework my money situation.  

I would put the mortgage lender and realtor on a list to not work with again. Make sure you get a buyer who is pre-qualified with a mortgage lender that you trust and try to have buyers on a list so that realtors are not needed. Have you looked into Google Ratings and other social media to give them honest criticism? Need to let others know about business people who are incompetent. 

Oh there will be reviews and I'll definitely remember who these asshats are.  I would just like there to be more responsible people in this industry.  

@Michael Jones I understand these things can be extremely frustrating. However; you didn't really give enough details of what the problem is for anyone to be able to offer you advice. 

If you're in a good market, it may make more sense not to extend the escrow and sell to someone else. Or, you may want to take backup offers. Unfortunately without knowing what the problems are, I can't give any specific advice.  Good luck. 

Karen Margrave

Originally posted by @Michael Jones :

Oh there will be reviews and I'll definitely remember who these asshats are.  I would just like there to be more responsible people in this industry.  

 Id be careful about leaving reviews for individuals that you were not the client of. Their job is to represent their client, not make your life easier. You might open yourself to a civil problem.

Russell Brazil, Real Estate Agent in Maryland (#648402), Virginia (#0225219736), District of Columbia (#SP98375353) and Massachusetts (#9​0​5​2​3​4​6)

I am also not sure if you will be keeping that EMD. If the deal was subject to a mortgage approval and the lender does not approve, unless you have a non-refundable EMD, they will most likely get it back and you will have no money to show.

@Karen Margrave   

I guess I wasn't clear enough.  Not that it matters now since I abandoned them, but the Realtor wrote up the agreement and disappeared for several weeks.  When he did surface he wouldn't give any updates other than he was checking on things.   His principle was no help either. 

  The Mortgage broker wouldn't return calls/emails for days and when he did, his updates were full of partial information and lies.  Neither of them would return calls to listing agent or title company.  The blatant lies are what really bothers me. I'm generally pretty easy to work with, but give me the run around and lie to me and all bets are off. 

While of course I was looking to get this transaction closed, honesty and decency is not too much to ask.  

@Russell Brazil

I know I'm not the sharpest tool and can get too emotional but this type of behavior from realtors and mortgage brokers is completely uncalled for.  Should they come after me, fine.   The irony is that neither of these guys are representing their client.  

@Michael Jones First off, if you were represented by an agent, your agent should have been dealing with this. If the selling agent wouldn't return calls to the title company, or your agent, your agent should have contacted the selling agents broker and discussed the issue with them. If there was no help there, your agent could contact the local board and file a grievance. In California all contracts have a clause for mediation, I'm not sure if they do in Oregon. 

I'd like to say after MANY years in real estate, there are going to be deals that fall through. There will be agents that are completely incompetent and irresponsible. The best thing to do is familiarize yourself with what remedies are available to work out the problems, and work your way through. There's usually a solution. 

Karen Margrave

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