Home Buying in 30024>Question Details

Richard, Home Buyer in 30024

Is there any real-estate law at Georgia for the penalty of delay closing?

Asked by Richard, 30024 Mon May 14, 2012

Hi, I just bought a new home at Suwanne, but the closing delayed as the lender cannot even approve by the closing date. I was charged by $175 per day, have to close it by borrowing high interest rate money. The lender dont want to pay that, the builder insisting they need to charge it.
Is there any real-estate law at Georgia to avoid the penalty? I know there is some laws in NC.

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A lender cannot close a mortgage loan until all outstanding conditions have been reviewed and cleared. It sounds like your loan still has outstanding conditions. The lender must be given sufficient time to review and clear everything once received assuming they meet the underwriting requirements.

Any per diem charges are between the buyer and seller. You would need to consult your real estate agent regarding the terms of your sales contract.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote Thank Flag Link Mon May 14, 2012
The per diem charge is between the buyer and seller - that's you and the builder. If you were charged at closing this per diem, likely your contract says they can charge it. It is usually placed in a contract to protect the seller, is of no benefit to the buyer, and is intended to ensure an on-time closing.

If your lender is the one delaying the closing, talk to them about paying it. If closing is delayed because you are missing some documentation, there's probably not much you can do.

Best of luck!
0 votes Thank Flag Link Mon Jun 18, 2012
Who is the builder that is charging 175.00 a day ? Not a nice way to do business.
0 votes Thank Flag Link Mon May 14, 2012
It is wyndham park. Some builder doesnot put this in?
Flag Tue May 15, 2012
Deryk Harper, Broker, Alpharetta, GA Hi Richard,
Your real estate agent, that is representing you in this transaction, is the best source of information for that question. The 2nd best source is the contract itself. If you signed a contract, agreeing to those terms, you are probably stuck living by the terms of the contract. A good Georgia real estate closing attorney would be another good source for answers. Good Luck!
Deryk Harper
Broker Associate
Keller Williams Realty North Atlanta
0 votes Thank Flag Link Mon May 14, 2012
It is in the contract I signed. The closing attorney is not aware of related law for the penalty on the closing delay. He said Georgia is not consumer friendly.
I think there are must be lots of cases like me.
Flag Tue May 15, 2012
If the delay is not the fault of seller and is between buyer and lender, these fees are usually written in the contract. If this is a foreclosure sale, sellers generally allow you ample time to close loans and lender delays are generally due to buyers credit or documentation delays on buyer's end. You can likely get around these fees if your buyer's agent knows the ropes of dealing with the different banks etc. Good luck getting to closing, hopefully sooner than later!

Erin Groover, Realtor
Web Reference: http://www.grooverhomes.com
0 votes Thank Flag Link Mon May 14, 2012
Bank is very slow, esp underwriter. I never know when the case will be closed.
I have to dump them off as they dont take care of the penalty.
Flag Tue May 15, 2012
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