Arizona - Seller backing out of sale?

Profile picture for doneverhart
Looking for some guidance, we found a home a few months ago and wrote an offer on it immediately because we loved the area.  The offer was accepted by the seller and was sent off for bank approval for the short sale.  A little time went by and the short sale approval came back.  We immediately ordered our home inspection and appraisal, both were done within the time period laid out in our contract.  Home inspection went fine and the appraisal came back today good.  3 hours later my lender called and let me know that my loan was fully approved and they would be getting docs ready.  I was so ecstatic I called up my agent and let her know that we were actually going to be ready to close early if the seller was so inclined.   5 or so hours later my agent called to advise that she had just received an email from the sellers agent stating that the bank had offered the seller a loan modification and he was not going to honor the contract, but instead do the modification.  We have placed the seller on notice that this would place him in violation of contract and that we were seeking legal counsel to explore recourse for this action.  Now its 9 oclock at night and I plan on going to an attorney in the morning...  Does anyone have any advice or experience with such things in arizona?   what recourse do I have?  How can someone just back out of a contract?  Is there a way to force him to perform? If I did that I would lose all monies involved up to this point.

-annoyed :-(

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October 26 2011 - Ahwatukee Foothills

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If you chose to work with your own realtor, then your realtor can guide you to the next step. Your realtor's broker will have access to the legal hotline if necessary as well.

If you had the seller's realtor also represent you, then you are on your own. Refer to section 7 of your Arizona Purchase contract for the appropriate steps.
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October 26 2011
Profile picture for sunnyview
You are smart to get legal advice right away. I hope that your contract you recoup your expenses since you waited for bank approval before getting them done. I can understand why you are upset, I would be really ticked about being that far along in the process and then having the bank change the deal in the middle.
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October 27 2011
Profile picture for Chuck Teetsel
Your issue would be fairly straightforward if the only document(s) used in your purchase was the standard Arizona Purchase Contract.  Because of the Short Sale, you probably also signed a Bank Contract or Addendum that may have negated some your rights for recourse.  I would suggest having those documents carefully reviewed by your Real Estate professional or an Attorney before pursuing action against the Seller.
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October 27 2011
Profile picture for doneverhart
all the language is straight forward in the addendums and we were careful not to lose any rights thru addendums.
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October 27 2011
Profile picture for ByronTheBrit

It is hard to believe, but if the contract is fully executed, leaving the seller no loopholes to jump through, then reluctantly it's attorney time.

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October 27 2011
Profile picture for doneverhart
lawyered up 30 mins ago.
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October 27 2011
Profile picture for sunnyview
Good news and good luck! I hope it comes out ok for you.
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October 27 2011
 
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