You have more than one issue here. You say the seller is now asking for a per diem. So that sounds like you have requested to extend your time. We don't know what exactly your contract says. If it was not changed from the origional verbage, then you likely have 17 days to remove your loan contingency. If you are asking for extension you must be beyond your 17 days. If so has the seller already sent the notice to preform? This is very important to you at this point. If they have not, you may have a few additional days until they send that in writing. You say you are only a few days away from closing. I hope you get your loan straightened out in time to close before you are asked to preform. Once that notice is given to you, you have only 24 hours before the seller may rightfully ask for cancellation. They may not just demand per diem if it is not already stipulated. However; if you are out of your contract time; and they have given proper notice, they may require that in order to grant the extension. If you don't agree, they do not have to give it to you. Many times sellers will do things like this just trying to get all involved with the process to speed it up and preform. Hopefully this seller wants to sell and does not want to wait for another buyer. Remember you are at risk of losing deposit funds if you are out of time with your contingnecy, so maybe a per diem will be the best way to go!
You need to get on the lender and get them to preform, that will fix this problem!
Best of luck with this,
Prudential CA Relty
Just curious - what did your Realtor say about the delay, the potential per diem, and the risk of losing your deposit? Have you removed your loan approval contingency in writing? In California, there is no Passive Rremoval of Contingencies - it must be in writing. Have the sellers served you with a "Notice to Buyer to Perform" with the threat of cancellation if you don't remove the contegencies? When does your mortgage interest rate lock expire?
Unless the sellers have back up offers, with buyers who are pre-approved and still interested, they will probably grant an extension of the close of escrow. If it is an REO, despite what is in the RPA, the Addendum A from the bank will prevail - there may be a per diem in the bank addendum. All this will be in your Escrow Instructions. Ask for an extension on the close of escrow if you need it and ask for the per diem to be waived. And just be prepared - if you do cancel, they may deduct a cancellation fee, and out of pocket expnses (like HOA docs) from your deposit.
Hope this helps.
Leslie Eskildsen, Realtor
As seen in the Orange County Register: http://www.ocregister.com/articles/mumbo-263352-jargon-jumbo.html
You should contact your agent and ask her/him these questions. From your other question, it sounds like you don't have faith in your agent. You should go the the broker of record who the agent "hangs thier license" with and discuss your dilemma, if you have lost faith in the agent representing you.
Your contract contains the terms by which your question can be answered. In my state we have a standard financing contingency form which would allow a return of earnest money if financing fails for any reason, provided the buyer makes a good faith effort to obtain financing.
In similar situations to yours, the seller would be advised to give you more time ( a few days) for your lender to resolve the unforeseen issues you are dealing with. For them to put the home back on the market could mean weeks of waiting for another offer, unless there is already a back up offer in place.
Best of luck