Home Buying in Redwood City>Question Details

Bryan, Home Buyer in California

I was in contract on a short sale and I am now past the closing date. Can I still close on the house if the seller doesn't cancel?

Asked by Bryan, California Sun Aug 5, 2012

I was in contract on a short sale and am now past the closing date. I needed 3 extra days to close my loan. (I never released my financing contingency.) Both the short sale lender's approval has expired as has my contract with the seller. My realtor is telling me I can still close even without a formal extension from the seller or lender, as long as none of the parties cancel and the seller doesn't issue a notice to perform. Is this true? It seems that the seller isn't even authorized to sell to me anymore at the price the lender previously approved.

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You will need to have the extension in writing approved by the short sale lender, and possibly your lender. Short sales do not close unless the short sale lender agrees to close them.

Marcy Moyer
DRE 01191194
0 votes Thank Flag Link Sun Aug 5, 2012
Ask your agent to produce an addendum asking for additional days for loan contingency removal and for the close of escrow. On going communication with the lender, the Seller's agent, and Buyer's agent is extremely important; everyone involved in this transaction should know exactly what is going on every step of the way.
0 votes Thank Flag Link Wed Sep 19, 2012
Hey Bryan, how did it end up? It's been a week since your question...
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Mon Aug 13, 2012
It was a very stressful week. I was told that if I closed within the week then the short sale lender would allow me to close out of contract, sort of an unofficial extension I suppose. I didn't even know you can close "out of contract". I barely got it done in time. and I now own my first house!
Flag Tue Aug 14, 2012
I agree, get the extension in writing and approved with your lender also short sale lender including all the specifics.
0 votes Thank Flag Link Tue Aug 7, 2012
Look at the approval letter from the lender. It specifies the terms of the sale including the closing date. I seriously doubt that the letter allows a late closing without a new written approval from the short sale lender. I doubt that the escrow company will process the closing without a new approval from the short sale lender.
0 votes Thank Flag Link Sun Aug 5, 2012
The contract can be amended if the parties agree...your realtor should ask for an extension.
0 votes Thank Flag Link Sun Aug 5, 2012
Talk to your lender, escrow officer, and then trust that your agent has your best interests at heart. Short sales are notorious for closing late. Good luck with your new home!
0 votes Thank Flag Link Sun Aug 5, 2012
Your new lender will not close without an extension, either...
0 votes Thank Flag Link Sun Aug 5, 2012
You are out of contract and I think it would be best if your agent wrote an addendum and extended the close of escrow. This should have been done prior to going out of contract.

The thing with short sales is sometimes there is no rhyme or reason, they ( the lenders) work with their own set of rules, so to say it's no big deal is foolish.

Good luck,

Tap
0 votes Thank Flag Link Sun Aug 5, 2012
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