Upcoming Foreclosures

How to solve this house buying issue?

We signed a sales contract on to buy an REO property 3 months ago. The delay on the closing is because the seller (bank) needs to get a document signed by the previous owner. The foreclosure attorney has sent the document several times to the previous owner to sign but is not getting anything back. I am guessing that the previous owner is angry that she lost the house (she is a realtor and bought the house as investment) and is refusing to sign the documents. This game has been going on for 3 months. What can we do from the buyer's standpoint to make the sale happen? I know who the previous owner is and where she lives. I cannot believe what she is doing is legal. She is basically obstructing a legal process. Please advice. Ernie I want to clarify a few things: the ex-owner is a realtor but is not representing this property at all. I have no contract with her. The sales contract we signed with the bank does not give us any benefits or right to charge if the closing date extends. They can charge us a per diem if we fail to close but we cannot charge anything. The contract completely protects the seller (bank)

Public Comments

1. Sorry but you tell the bank there will be penalties for any more delays of closing date. If the delays were your fault you bet your wallet the bank would be penalizing you. Otherwise walk away.
2. OK, what exactly does the bank want signed? Do you have a contract with the seller (realtor)? If so, then I suggest calling her and telling her that if she does not sign whatever it is that the bank needs signed, then you will sue her for breach of contract. Remind her that (1) the contract will require her to pay you not only breach of contract damages, but your attorney's fees and costs, since (I presume) that is a clause in your contract, and (2) when you win the breach of contract suit, it will be *super* easy to collect the judgment from her, because all you need to do is keep track of her future listings on Realtor.com, and then place a claim on any commission she is due as soon as you notice one of her listings labeled, "Pending sale." Hopefully that "threat" will entice her to get her act together.
3. you can't do ANYTHING. This is one of the reasons REO sales are really not worth it. If you want the "deal" then you have to live with it.