In the latest real estate bust, two properties went into foreclosure last month after a sale to a prospective buyer went sour.
According to the Los Angeles Times, the sale to the seller went bad because of the lack of a contract.
The seller was also told by the buyer that he was responsible for paying the closing costs of the sale.
The buyer, however, refused to do so.
The Los Angeles Examiner reported that the buyer and the seller had agreed on a sale price of $300,000 and $1 million.
The purchase was made in April, but the sale price was reportedly paid to the buyer last month, which led to the sale of the property.
The seller, who had been negotiating for more than two years, said he had to close the deal due to a financial emergency, the Los Angles Times reported.
The property went into a foreclosure auction on June 30.
The buyer is not known, the LA Times reported, citing sources.
The sale has been sealed pending the outcome of the investigation, the Times said.
According to the LA Examiner, the buyer has told agents that he will not seek an attorney for the sale, and has no legal representation.
In the latest sale, the property was purchased by an unnamed buyer in Los Angeles.
The buyers attorney is not identified in the report, and the buyer is still unknown.
The LA Times also said that the seller told agents he had a mortgage for the property but could not pay it because of his financial emergency.
Realty is booming in Southern California.
In June, the city’s real estate market reached a record high of $843 million.
In October, the number of new listings jumped nearly 60 percent, according to RealToric, a realtor and data service provider.