Unethical Selling Agent

[dbuyer]

We put an offer on a short-sale and after waiting 3 months, was told by the selling agent, that the banks approved. All inspections such as mold and radon was done which amounted to around $1500. After doing the inspection, it was found that mold was found in the home so we asked for a reduction.

When talking to my agent, she found out that the banks never approved the short sale and listing agent/company basically lied. I have also reviewed Listingbook and Redfin to find that the asking price has been lowered, it is no longer showing pending a sale, but rather a release from contract and it references inspection reports that I paid for out of pocket.

How is this possible if the selling agent came to us with "bank approval" of our offer? Why on earth would I spend over $1,500 on various inspections only for the seller to use that information to sell the property to another buyer?

Is that considered fraud and do I have any recourse?

Thanks
-Dimitry

[Evan Bedard]

How is this possible if the selling agent came to us with "bank approval" of our offer? Why on earth would I spend over $1,500 on various inspections only for the seller to use that information to sell the property to another buyer?

Is that considered fraud and do I have any recourse?

Welcome to the forum Dimitry.

It is not uncommon for the bank (one of their reps) to verbally approve a short sale and later turn it down or never send the agreement. Did you ever receive any proof that the bank agreed to the short sale?

[dbuyer]

The listing agent sent an email stating that the bank approval was done and settlement date was end of the month. I never received an official approval letter but to me this is misleading someone.

Thanks
-Dimitry

[Evan Bedard]

Yes you are right this is most definitely misleading and the agent should have never contacted you that the sale was approved until he had the paperwork in hand from the bank.. Any decent agent would be well aware that verbal offers mean virtually nothing in this business.. The reps at the bank can say almost anything they want and not be held liable statements. But if I were you I would probably spend a couple hundred on an attorney consultation to see if you have any leverage to get that $1,500 back you spent on inspections.