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Doctor Who,  in Michigan

I have a purchase agreement and emd $ - the purchase, agreement expires in 4 days will i loose the property because i have no closing date. by bank

Asked by Doctor Who, Michigan Tue Dec 28, 2010

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HI Dr. Who! I am surprised that the bank would accept a purchase offer without a closing date. In Texas, that is a standard part of our contracts. If you are represented by an agent and if in fact you have a signed agreement that has some sort of closing date, you should have the agent ask for an extention. If you don't have an agent, ask for an extension. In the short sales that I have closed, we have had to extend the closing dates - somtimes several times.

It feels to me like the banks play by a whole different set of rules than we go by in a more typical transaction, but if everybody wants to close on the property, it will probably happen. You tend to be at risk when you don't get agreements in writing, and that would apply to short sales or a typical (if there is such a thing) transaction.

One more thing. I'm just curious. Who is holding your earnest money deposit? Have you read the terms regarding it's release? Good Luck with this and let us know how it turns out!
0 votes Thank Flag Link Wed Dec 29, 2010
The specifics of the question are too vague. You'd be much better off asking your REALTOR.
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Wed Dec 29, 2010
It depends upon the language in the agreement.

What does the contract say happens if the seller can't close by the closing date?

Ultimately, this is a question of contract law. In Illinois, real estate agents can't practice law even if we know what the law states. I'm not sure what Michigan law says about that.

Ask your real estate agent or your attorney to be sure. If you have no agent or attorney, you should get one.
0 votes Thank Flag Link Wed Dec 29, 2010
I concur with the responses so far, without knowing what you mean "by bank", it is hard to give you a complete and accurate answer. What does your loan officer or real estate agent say? Certainly, one or the other can answer your question quickly and accurately.
Best wishes in your process, Jim, Home Savings of America.
0 votes Thank Flag Link Wed Dec 29, 2010
Hi Doctor Who,

Tim is correct, you do not have a deal until both parties have agreed on the terms and both have signed the purchase agreement. You don't really say if it is a short sale or a foreclosure but then again it doesn't matter. Someone representing the bank would be the signer on the offer to purchase.
He is also correct when he states that the EMD check does not get deposited until there is an offer signed.
If you don't have a purchase agreement signed, you don't a closing date.
In deals with banks this can be a common thing because they do take so long to give an answer.
I hope you are working with a Buyers agent that can assist you with these questions also. I am surprised you were not made aware of these items by your agent. Have your agent contact the sellers agent to see about getting updated information on the progress. If you and your agent feel the need to right an extension then do that.

Good Luck
0 votes Thank Flag Link Tue Dec 28, 2010
A lot depends on what exactly you do have. Like Phil I wonder about the words by bank. If you are in a short sale and you have made an offer and the owner has agreed but you have not heard anything from the bank then you really don't have a contract to purchase, you have just an unanswered offer to purchase. In a short sale the bank must also agree and here we have a document that the banks must sign. Until we get that signed there is no contract and no need to deposit any earnest money. If you are still waiting to see if the banks says yes or no and the date that your offer has in it is about to expire you can write a new offer and submit it or an addendum extending the closing date - it depends on how they do it in Michigan. I like to write "close 45 days from bank acceptance" in the space for a closing date so that it never expires for that reason.
0 votes Thank Flag Link Tue Dec 28, 2010
Good Morning Who;
I'm guessing that by the last 2 words ("By bank") you maybe talking about a short sale.
If so, get an extension on the contract and make sure there's a closing date on the contract.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Dec 28, 2010
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