Home Buying in 06351>Question Details

MomDoesItAll, Home Buyer in Lisbon, CT

Closing Date Help?

Asked by MomDoesItAll, Lisbon, CT Mon Dec 12, 2011

Our contract states we can close on or before January 31, 2012. In order to lock our rate (3.85%) we need to lock it now, which means we have to close on January 20th. Our agent sent a letter to the buyer's agent to this effect who is consulting with seller. Seller has been lagging on packing or finding a rental to move to citing the "Holidays." What are some possible options? We locked the rate and will not miss the opportunity for this rate.

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Answers

6
You might also ask your bank to extend the rate lock to January 31, 2012. Banks can be flexible, and often it is a matter of getting to the "right person" at the bank.

Good luck.

Tom Lynch
Associate Broker, Massachusetts, New York, and Connecticut
Berkshire Property Agents
12 Railroad Street
Great Barrington, Massachusetts 01230
0 votes Thank Flag Link Tue Dec 13, 2011
Have your attorney get involved with a possible rent for a short time
and if not out by a certain time, sellers would have to
pay a huge amount which might make seller move quite quickly.

anne
0 votes Thank Flag Link Mon Dec 12, 2011
DO NOT close on the property while the seller is still there. I imagine you are not buying a rental property, and now you would assume the risk of having to evict that person. It seems from your statement he is in no rush to move out. Your bank should be able to give a one time extension, inform them of the issue and prepare your lender. Best of luck again.
0 votes Thank Flag Link Mon Dec 12, 2011
I personally think it was way too early to lock in an interest rate if the contract says on or before January 31st and the seller has not given any kind of commitment that they are ready to move as quickly as you; How much is it honestly going to vary between now and January 31st, not much I'm sure. All the best.
0 votes Thank Flag Link Mon Dec 12, 2011
Your agent and or attorney can better advise, therefore do consider an immediate consultation; not advisable that the seller remain on the premises after closing; in such a scenario liabilities do come to play, and again your attorney can better advise.
0 votes Thank Flag Link Mon Dec 12, 2011
You can make the claim that your contingency for mortgage approval cannot be met if you close after Jan.20th. To sweeten it for the seller (if that is needed), you can offer him~10 days to live there rent-free (via a written agreement) after the expedited closing. In the fine print in that agreement, I would put in some wording providing them an ample incentive to leave by the agreed-upon date.
0 votes Thank Flag Link Mon Dec 12, 2011
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