After entering into a contract with a buyer, they're trying to change the closing date, 'cause their lender can't do it in time, and they're refusing to use MY lender, who says they CAN close in time. Is this fair practice?
I am a local mortgage broker and sellers Realtors often contact me to see who iam and what lender I am using and how quickly I can get the deal done. Often times they ask information (which they have nor right to ask ( credit score is one). Without revealing my clients pertinent information I can usually reassure a Real Estate Professional that I know what I am doing and that my expectations are realistic. Often timesin short sale situations I have been asked to adhere to strict time frames when I know that the seller will not be ready when the loan is ready to go. Sellers right now are frightened that the deal falls through. You agreed to a contract and now you want to change it and you have a problem that the seller wants to protect their interests. I am guessing that you may have switched to a 203k loan and the Bank you are using is a well knowninstitution who's turn times are known in the industry to be currently running at 90 days. Or that you are using an out of state lender that nobody is familiar with. Give the seller a reason to have confidence in your choice and I am sure that they will agrre to extend the contract. Give me a call and I will be happy to explain in more detail how to resolve the situation.
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1st time homebuyer ---Potentially using a different lender who can close in time is the best idea --Not the Listing agents but somweone else.
let me caveat my answer with the proper disclosure we are all so worried about..."I am not an attorney and any information here in is not legal advice, please seek attorneys advice for legal questions." OK, we got that out of the way, contracts have "rights" for buyers and sellers and generally have clauses to stipulate financing contingencies. You need to read the paragraph in your purchase and sale contract with regards to financing, to see if you can "change lenders, back out, ect," with or without earnest money loss. I hope that helps answer your question as to "your rights in this matter." Now in terms of Sellers agent doing something that is fair/ethical.ect? I tend to agree with one writers point that the seller's agent might be protecting the seller. Not to put down the Mortgage industry in my area, however,when a buyer tells me they are working with a mortgage broker from Miami area, red flags start going up every time. This may be the case with your particular lender. Sadly, we are in an industry that does not always keep the moral and ethical standard very high. Also, is the agent asking you to use "their mortgage representative?" If not, then maybe there is something odd going on with your chosen company. Hopefully that helps.
FYI, here's a blog i did on budgeting for home expenses.
I would speak with your attorney or your Buyers Agent for additional consulation.
Best of luck,
David Jaffe-SRES, CDPE
One of Brown McKinney's team members is a lawyer by trade and can provide you with a consultation if you need it. Please let me know and I'll pass along his contact info.
Best of luck!
Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
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Realtor, GRI, CSSN
John Hall & Associates
The seller's agent may think they are saving their seller time and/or money by not wanting to accept the change, and they could be right. Without knowing the complete story, this is the best response I have to your question. Best of luck to you!
Best of luck.
Perhaps the listing agent and/or seller has already been burned before by other buyers who went with your lender, or maybe the seller is dealing with a hard deadline (meaning it's set in stone and can't be changed).
is it more important to you to buy that home or to use that lender? Choose wisely.
I agree with you that you should be able to use whatever lender that you choose. However, that doesn't mean that you get to change the agreement to accommodate it. I don't blame you for being sore, either, by the way!
Financing has become a big obstacle in meeting deadlines and actually closing transactions. Here in the Pacific Northwest, for anyone who's interested, our contract indicates that the buyer will make full loan approval within a brief time, and if they change lenders without the consent of the seller after that, their financing contingency will default and they will lose their earnest money if they don't close on time.
I don't think that you can force the Seller to accept your changes. You may be able to convince the listing agent, however.
All the best,