If you have a valid reason (to the bank) like, the HOA didn't get us (specific) paperwork for a week, the underwriter for the new loan was fired and we had to resubmit, etc the listing agent should be able to get the extension.
Failing that, the credit is for closing costs. Unless the short sale approval letter from the bank spells out what it can/can't be used for - you get to apply it where - ever it is needed :).
Closing cost are ALL funds the buyer must pay to close the deal.
If the seller is willing to give you a credit, I see no reasonwhy they would not allow you to apply some or all of the credit they are giving you to satisfy the per diem fees.
Please work with your lender to try and minimize the closing delay, so you will not be on the hook for too much by way of the per diem.
Best of Luck to You!!!
Kawain Payne, Realtor
Yes, it is part of your closing cost. But If you are getting a loan, you would need to address this issue to your loan agent and your agent , so you could structure this credit to you pay for your lender's closing cost and use the remaining to pay for this per diem item and possibly other part of your closing cost too. Otherwise, the remaining part of the closing cost could revert to the seller and you would have to pay for it because the some lenders might not allow it. Therefore, get ahead of the "game" and talk to your agent and loan agent, and have it in writing signed by the seller in escrow!