Home Selling in 01852>Question Details

dwabby, Home Buyer in Lowell, MA

A purchase and sale has been signed. I am Seller and the Buyer is asking for a 2nd ext. to get his financing in order?

Asked by dwabby, Lowell, MA Fri May 4, 2012

I do not want to give this to him. Do I have to sign the 2nd extension? The realtor is waiting as I write this for me to go to her office. What would be the consequences? Thank you.

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No you don't have to sign an extension but realize you will not close with this buyer as well.

If you are to grant them an extension, I would want to know exactly what is going on. I there a conditional mortgage commitment from the bank to review?

You most likely have given them enough time to finance the home. You have signed one extension. I would have my agent get to the bottom of what is going on and what the likeliness is of closing if you do sign another extension. Things do happen and financing is tight and a lot of deals come together but it is well with in your right to know what exactly is going on.
0 votes Thank Flag Link Fri May 4, 2012
Hi Kevin, I appreciate your input. The problem with "our" agent is that we don't get the sense that she's "our" agent, more like the Buyer's agent [who, himself is an agent and is representing himself!] Do you smell something fishy here as I do? I am making these inquiries for my mother and we decided we are getting our own attorney as "her" current real estate attorney [referred by "our" agent] doesn't seem to be looking out for my Mom's best interest. Things have gotten out of control and messy and my Mom feels manipulated. We don't have a good feeling about all of this.
Flag Sun May 6, 2012
If you do not sign the extension then your contract will expire on that term. You do not need to sign the extension, but if you do not, your buyer may not be able to meet the condition of the contract.
0 votes Thank Flag Link Mon Dec 24, 2012
I know this answer might be too late for you... Not sure whether you have signed the extension. But if I were your listing broker, I would have contacted the mortgage broker to find out about the real reasons for you.

If the risk for the buyer not to obtain a mortgage is low, I would advice you to sign the extension because it is still safer and sooner for you to close the deal. Meantime, I would have continued to do open houses and accept back-up offers from the very beginning. So if we had a buyer who could buy with cash or could close sooner, we would have had a second choice.
0 votes Thank Flag Link Wed May 9, 2012
Very common financing today takes forever and a day. Appraisers are backed up and the process is taking longer
0 votes Thank Flag Link Wed May 9, 2012
what whole sale Bank are they going with? put the property on the market to fetch back offer:
0 votes Thank Flag Link Fri May 4, 2012
I agree with Kevin it may not be the fault of the buyer - many lenders today cannot close on time I know of only 2 that can ! but also you deserve to know what is going on and they should give your agent permission to speak directly to the lender good luck
0 votes Thank Flag Link Fri May 4, 2012
Dwabby,

Do you want to sell this property? By meeting the buyer part way and giving them a little more time you may be saving this transaction. Taking a rigid stance may not yield the results you require. Listen to your agents advice....

Bill
0 votes Thank Flag Link Fri May 4, 2012
if this delay is caused by the buyer's lender why wouldn't you want to give them an extension?. Do you no longer want to sell the property? or you would rather start from scratch with another buyer?. Sometimes lenders drag their feet and an extension or two are needed so why not give it and move on to a closer closing date than if you started from zero again?
Web Reference: http://www.wenrealty.com
0 votes Thank Flag Link Fri May 4, 2012
Thank you.
Flag Fri May 4, 2012
If you don't sign the extension you lose the buyer and put the house back on the market. Ask what conditions the loan officer is waiting on....if they only need a week or two you're better off giving them an extension.
0 votes Thank Flag Link Fri May 4, 2012
Thank you.
Flag Fri May 4, 2012
It is fairly typical for the banks to postpone the mortgage commitment - this is especially true of bigger banks. It sounds like you're fed up with it? If you have other offers on the table, you don't need to sign the extension - that way you can consider other offers. If you don't have other offers, it doesn't hurt you to sign the extension but perhaps negotiate the ability for your agent to flag the listing on MLS with a "kick-out clause" allowing you to continue showing the property and consider other offers once the new date has passed with no positive outcome.
0 votes Thank Flag Link Fri May 4, 2012
Thank you.
Flag Fri May 4, 2012
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