So, we have a client ready to close on a bank REO in 2 days. We get a call from the listing agent that says the bank (seller) is canceling the transaction due to title issues. Keep in mind that buyer is already financially committed to the transaction ($700 worth of inspections and $400 appraisal) and has spent their own dollar in performing the due diligence they agreed to complete per our contract.
Obviously our client is up in arms at this point just 2 days prior to closing. We send notification back to the listing agent that our client is committed to wait for them to figure out the title issue after being told it could be up to 3 months to clear up the issue. We have them sign an addendum with a request for bank to extend the closing for at least another 30 days and the bank actually signs and agrees.
Now today, the lising agent calls back and says the bank is no longer in agreement and has instructed escrow to cancel the deal! We asked the listing agent if the bank is willing to reimburse the buyer for appraisal and inspections and in so many words basically says yeah right. Being that she most likely will not be relisting the property all she is concerned with is cancelling a transaction.
Too bad some banks and their selected escrow companys and selected listing agents don't understand "committed" problem-solving to get a transaction done especially when the buyer is willing to wait. It also poses another question as to why would a bank not due their due diligence on their bank owned property ( reo ) prior to putting the property for sale. Especially now that the buyer is the only one who has been damaged.