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Njbuyer, Home Buyer in Wayne, NJ

I need to postpone Short sale closing date

Asked by Njbuyer, Wayne, NJ Sat Apr 11, 2009

I'm in the process of a short sale, 6 months in. They have finally excepted my offer but want to close in 30 days. I need to wait 90 days to close. I was told bank won't accept my later closing date, is this true ? What do I do ? I don't want to lose the first time buyers rebate and my 3 yrs free of mortgage is in July, that is why I need to wait to qualify. My oroginal contract is void from Nov so they can't hold me to anything at this point.

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Answers

6
Check with your Realtor. He/she should be able to advise you.
0 votes Thank Flag Link Mon Aug 26, 2013
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Njbuyer,

As stated by all others, check with your attorney. With that being said, its unfortunate that you are now first hearing of the bank issuing a 30 day closing date. That's pretty much common practice of the a bank in a short sale. That should've been explained to you by your realtor that most likely once the bank accepts your offer and they will issue a closing date and that closing date is what it is. They have little or no regards as to what your position is on that closing date. Check with your attorney to see what additional addendums may have been signed locking you into the contract or if at this point you can legally walk away without any strings attached. Of course, not knowing if or how much you've expended so far in attempting to buy this property, you need to outweigh your funds expended and anticipated funds should you choose to move on to another property. If you cannot just simply walk away or choose not to but insist on changing the closing date, you need to find out at what price or penalties will you incur. The bank is not likely to take any more of a hit on this property so they may look to put a penalty on you.

Good luck

Gina Chirico, Sales Associate
Prudential NJ Properties
973-715-1158 cell
973-992-6363 ext 116
Gina.Chirico@PrudentialNewJersey.com
0 votes Thank Flag Link Sun Apr 12, 2009
It really is up to the bank that holds the mortgage. The reason you were probably told that is that the bank agreed to your offer based on a "net loss" to them. Waiting an additional 60 days will cost them an additional 60 days of interest on the loan. I don't know your specific situation, but perhaps if you agreed to pay them some of that additional cost they would agree. If that doesn't make financial sense to you, just ask whoever is negotiating for you to "formally" change your offer to a July closing date. I dont' feel real confident that they will accept it, as short sales agreemetns almost always have that 30 day close clause in it. Just have your Realtor or Attorney calcualate the daily interest payment on what is owed by the seller to help you with your decision. Let me know if I can help in any other way. Marie Episale, REALTOR, e-PRO Century 21 Pompton Plains 201-314-0106
0 votes Thank Flag Link Sun Apr 12, 2009
Hi NJBuyer - this is how short sales usually work - you wait and wait, and then when the bank says yes, it is with the understanding/stipulation of a 30 day close. I understand your reasons for wanting to wait, but I do not think the bank will care. It is very possible that you will lose the deal and in terms of penalties, that all depends on what you have signed.

Other posters are right, seek the advice of your attorney right away.

Good luck and best,
Jeannie Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun Apr 12, 2009
You may think the contract is void, but I bet there were additional papers that make it effective. You better check with a lawyer. And, when you do - bring all your papers that you signed. Surprise, Surprise.
Web Reference: http://GregoryBain.com
0 votes Thank Flag Link Sun Apr 12, 2009
Once a bank schedules a closing on a short sale, there are usually penalties built in if you close past the 30 day window. I would speak to your agent and an attorney to see if there is any way to negotiate an extention.
0 votes Thank Flag Link Sun Apr 12, 2009
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