Home Buying in 20164>Question Details

Aniley, Home Buyer in 07093

Would banks grant a 1 day extension to close a short sale? Loan is approved but closing date was last Friday. Thanks

Asked by Aniley, 07093 Mon May 2, 2011

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Aniley’s answer
Update

Hi everyone,

I am very happy today because I’m a homeowner. We did close on the house yesterday. Both Lenders (Chase and SSL) gave us 2 more days to close. We received approval yesterday morning and closed in the afternoon. I think that our agent and attorney did a great job.

Thanks to all of you for your help and input. I appreciate it.

Aniley
1 vote Thank Flag Link Tue May 3, 2011
Aniley,

If your closing date was last Friday - April 29 - and you are posting your question today, May 2nd, you need 5-7 day extension at the minimum, not 1 day extension.

Hopefully, your agent and the listing agent know enough about the short sales to handle the situation correctly. Or at least were smart enough to ask their brokers for guidance - after all, this is what the brokers are for, to guide the agents through the real estate transactions, if necessary.

Most lenders are reasonable enough to extend the closing date, especially if you have a legitimate reason.
Your agent is the best person to answer your question.

Good Luck,

Vivianne Rutkowski
KELLER WILLIAMS REALTY
1 vote Thank Flag Link Mon May 2, 2011
With all due respect I get so confused when I see questions like this.... you surely have an agent, right? One that is well versed in short sales? I can't imagine why you'd go to a generic source like this when I am sure you hired a competent agent to represent you.

As the prior poster said, usually you can get an extension but there are variables. The entire transaction may need to be approved again, its a bank by bank policy, so extending for one day may not be possible as it may take several weeks to get re-approved. Again, this depends on the seller's banks' internal requirements. There is a huge advantage to doing it in advance, but that is not always possible, and banks know this - it's not their first property sale. Sometimes there's a fee to the buyer, sometimes not. Look to your agent and the listing agent for specific information that impacts your transaction.

Best of luck.
1 vote Thank Flag Link Mon May 2, 2011
CONGRATULATIONS!
We are all happy it worked out well for you :-)

Vivianne Rutkowski
KELLER WILLIAMS REALTY
0 votes Thank Flag Link Tue May 3, 2011
Dear Aniley,

I agree with all the pros in this forum who have given great advice and asked you great questions. Please keep us posted on your situation.

Best of luck!

Yvonne Jansen
Web Reference: http://www.YvonneJansen.com
0 votes Thank Flag Link Mon May 2, 2011
I'm shaking my head for the same reasons Vicky mentioned in her opening paragraph.

Your agent should have seen/predicted the delay coming and asked for an extension AHEAD of time, not after the settlement date. Banks may or may not give an extension depending on the circumstances, but it should always done BEFORE the settlement date.

Speak with your agent - they should speak with the listing agent of the property who will have to contact the bank and request an extension - IN WRITING - to move the settlement date back. It's much harder to get an extension AFTER that date the original short-sale approval expires. And it will definitely take longer than one day to get the extension.

Important: If you do not have the extension, in writing, signed by the appropriate person at the bank, you can not settle on the property because the short-sale approval has expired and there is technically no short-sale approval anymore. At this point, you're not asking for an extension - you're asking for a new approval.
0 votes Thank Flag Link Mon May 2, 2011
Yes they do it all the time. All yo have to do is ask. but this is assuming there is a viable reason why it was delayed and you can assure the short sale bank (the sellers lender) that it will indeed close when the new closing date is scheduled.
0 votes Thank Flag Link Mon May 2, 2011
Thanks to all for your answers.

I'm refering to the bank holding the property mortgage now. Our attorney has the loan final release and the money available to be sent to the lenders. She is trying to negociate with the banks for an extension to close today. Our agent did not ask for an extension because we were closing on Friday but there was a problem with the wire transfer and the money arrived after 5:00 pm which was the deadline to close.
0 votes Thank Flag Link Mon May 2, 2011
Hi Aniley - I'm confused, too. Which bank are you referring to - the one holding the property's mortgage now or the one you're using for financing? In either case you should have been asking your realtor or lender to get that extension for you sometime last week. Ask them now and get things back on track. Best wishes! Tom
0 votes Thank Flag Link Mon May 2, 2011
Hi Aniley - this would not be unreasonable but it is up to the listing agent to negotiate the extension with the bank - even the process of getting new approval letters will take more than one day usually - you might need to wait a little longer than a day to close.

Good luck,
Sonal
0 votes Thank Flag Link Mon May 2, 2011
Hello Aniley,

Have your agent draw up an amendment/addenum to request an extension via the listing agent.

This will need to be approved by the lienholder(s) and should not pose an issue if you are still within the 30 day approval period initially granted.

All my best,
Lisa

Lisa Moroniak | REALTOR® | Service360°
SFR - Short Sale & Foreclosure Certified
Keller Williams Realty
Phone: 703-635-0388
Fax: 703-679-1701
Licensed in VA
Web Reference: http://www.LisaMoroniak.com
0 votes Thank Flag Link Mon May 2, 2011
Ideally you should request the extension prior to closing. Most banks don't have a problem with it, mostly because they make more money from it....extensions are not free. I recently closed a short sale and the bank granted the buyer a 30 day extension.
0 votes Thank Flag Link Mon May 2, 2011
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