David, seems like you have some pretty good advice below. Hang in there. You chose to buy in a very challenging market. When you are enjoying Christmas by the tree, and all is over, you will be thankful you were able to hang in there.

Good Luck,

Julie Lozano, Realtor
Prudential California Realty
Rancho Cucamonga, CA
calljulielozano@yahoo.com

Well David, the first thing I can tell you as a buyer is not to trust the opinions of Ms. Starks. Read the reviews. Maybe listen to the others.

In our experience you get led in the wrong direction, too many back door deals with these people. Get a referral for an attorney, someone you trust and who has something more than a high school education to help you with this.

David - if this is an REO, and this is a seller delay, in my experience, the per diem is always waived. REO's are pretty good about waiving on their delay. In my rant about short sales below, the short lenders almost never waive - regardless of who is causing the delay.

Good luck and enjoy your new place!

While I agree with quite a bit of what Laurel wrote, I (as an investor) take a slightly different approach. The key here is that the seller (the bank) is ASKING you to give them an extension. Although you could say, "no," that's probably not the option you want--especially since they gave you one. Instead, you should ask your agent to negotiate with the seller: offer to give them the extension provided they rescind or cancel the per diem. That bank shouldn't push back on that request; however, stranger things have happened--especially these days.

Keep in mind that this bank wants to close this transaction just as badly as you do, so you can use this as leverage, and just realize that the bank is also trying to use this leverage against you.

Thank you everyone for the great advice. FYI it is a REO property. Everything will work out I just don't like the idea of the bank being able to delay the process and trying to charge me for it. Who is to say this is not a tactic they can use to decrease the amount of closing cost I negotiated for them to pay. For example, The bank agrees to pay $3500 for closing, but if they delay for 10 days and charge a per diem of $100 a day they are now only paying $2500 for closing out of their pocket and paying the rest with my $1000 per diem fee.

David - Is this a short sale or an REO? If it is a short sale, then the seller's bank (the short lender) has probably issued an approval with an expiration date. After that date, there is a per diem that will be imposed. Most banks who issue these do not specify who has to pay it. However, the seller probably has no funds, so the buyer is the only one with funds to pay for it. I know it does not seem fair, but unfortunately this is a necessary evil of short sales.

The listing agent can try and negotiate the per diem away, or get it reduced. Honestly, I have seen banks do that very few times. Most of the time they do not bend when it comes to per diem. However, it is worth a try. If the per diem is for, say, $75/ day, times 14 days is $1,050. You could propose that you'll pay $500 and see if the listing agent can negotiate that with the bank.

If you're stuck and the deal won't close w/o you paying the per diem, you have a choice to make: to cancel and find another property, or to eat it and just be glad you got a house. In the long run, it is probably a small price to pay. If you are getting your closing costs paid, then consider it a trade-off.....which is in your favor.

I will tell you that it is a jungle out there right now. Many homebuyers these days are writing up 20, 30, 40 offers before they get one accepted. If you have a locked up a property, then do whatever you need to do in order to hang on to it. The grass is not greener, I promise!

David:

If it is truely the seller's fault, they should give you an extention, as the other agents have mentioned have your agent contact the listing agent and get an extention. You have the right also to demand for the seller to perform, but if it is a bank, it probably won't do any good. You also want your agent to verify that you won't loose your interest rate lock and that your documents will be good for the time that is needed for the seller to perform

Good Luck
Diana 909-945-5763

Hi David,
Your agent should review the contract or bank addendum carefully. Generally, there is only a per diem if the delay in closing is due to the buyer not performing. But, each contract is different, so reviewing the contract is very important. Your agent should discuss this with the listing agent as soon as possible.

Good luck.
Jennifer Bierfeldt
REALTOR

David,
Have your agent contact the listing agent and send another extension to the seller with an explanation of why the extension is needed. Ask for more days than you need, it's always to be safe than sorry. You can always close sooner if everything is fine.

Talk to your agent as soon as possible to handle this situation.

Everyone wants to close this deal and the seller should work with you,

Jes Sierra, B.Sc.
Realtor®