The point is that the buyer is costing you both hard dollars by delaying closing and missed opportunity to find another buyer by continuing to tie up the property.
First it's important to get a few things straight. 17 days is next to impossible to get a loan commitment on any property. If the buyer has done a complete application with full documentation before writing the offer, just getting the appraisal back and reviewed after any inspection or due diligence is a tight time frame.
Next your agent, having written the contract is in a very awkward position. Who do they truly represent? On paper may be you or both parties, in reality they represent themselves getting to double end a transaction. If you have reason to suspect the agent is being less than fully forthcoming, you are in a difficult position. State laws vary, but in my state an agent can only be a Dual agent with written authorization from the seller. Check what the laws are in CA to find out where you stand.
Finally, if you insist that they remove the financing contingency after 17 days they have 3 options. Remove it at the risk of losing their earnest money. Ignore your requests and hope you don't mean it . Or deny the request and put you in a position of putting the house back on the market.
If the offer is good, based on the short time frame, you may want to grant them some extra time, but 30 days from mutual acceptance should be enough for most lenders.
If the offer is less than you really believe you should accept, consider forcing the issue and getting back on the market.
We have no way of knowing if the offer you have is worth sticking around for. How much do you trust this agent? Consider talking to the managing broker, but realize they have a vested interest in you completing this transaction.
I hate to suggest the worst, but with your agent also representing the buyer, it makes sense that they would encourage you to give the buyer more time, because the agent wants to double-end the deal. The buyer should have been better screened before escrow ever opened; or at the very least required to double-app with a lender of your (or your agent's) choosing that could fund the loan if something came up unexpectedly.
With the new guidelines loans have been taking longer to get done. It is not uncommon for a buyers loan approval to take longer than 17 days. Has the buyers appraisal been done? Or are you still waiting on that? If it's been 17 days and no appraisal this could mean that the buyer is having a hard time getting approved. Typically the lenders won't order appraisal until buyer has been approved. Without knowing all the specifics of your transaction I can't really give any advice on what to do or not do. But I can say a lot of escrows are taking longer to close then normal . 45-60 days. Best of luck.
It is true that loan contingencies aren't met until the file clears underwriting. It's kind of late to be changing agents but you went off course when he represented the buyer.
Best of luck to you.
Whether you're the buyer or seller in this situation you have to play hard ball as if you're basically representing yourself. Or you will get played if you are deemed a softy.
No matter what you agent recommends if you don't feel right about it don't do it or ask more questions first.
Since your agent is acting in a dual agent role it is hard for him/her to play hard ball with the buyer, as the buyer is also their client.
If you are not happy with what they are trying to do, have the agent execute a notice for buyer to perform regarding removing the loan contingency.
Does the buyer have the additional documents required on hand and ready to be delivered to the lender?
Based on the info you have provided, you have two choices: 1 grant the buyer the extra two weeks 2. Cancel the escrow and start all over with a new buyer.
I wish you the best!
Kawain Payne, Realtor/Notary
They should remove the contingency since that is in the contract. I may also give a 10-day extension (more than enough time) with an incentive or cost and want to know the exact reasons u/w is holding up the deal. Getting back tax documents could be the delay but you are entitled to know the buyer will perform. Otherwise accept the strongest back-up offers (being that the property is in Encino) and/or make it a condition the buyer apply with a lender you know.
Well I hope this helps you! If you have any further questions or if you would like a loan, feel free to contact me!
Sr. Mortgage Consultant
NMLS # 1048392
You should decide how much longer you would want to extend the buyer's loan contingency period. If you'd like, you can try speaking with the buyer's lender and getting an explanation from them if you feel that you are not getting enough information from the Realtor. It is not unusual for the loan contingency to go passed 17 days-- however, 2 weeks seems like a long extension on that contingency. You do not have to give the buyer an extension for 2 weeks (less time is a possibility).
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Look at page 2 of your purchase contract; Is the box at the upper portion of the page checked off so that it is basically stating "buyer has until their loan is "Funded" to remove their loan contingency? If it is checked, they potentially CAN HAVE until 'past' the 17 days to remove a loan contingency. Having this box checked is basically stating that the buyer will have until about 48hrs before the day you close, to back out & recoup all of their deposit, without penalty, should their loan not close.
**If that box is not checked, then, regardless of their lender or loan underwriter issuing a letter or stating that the buyer "is approved", after 17 days that lender should be able to feel confident enough that the buyer's loan WILL ultimately be approved, so the buyer would have enough confidence in their ability to 100% secure financing & close on the house, that they Would remove their loan contingency.
*****Everything can be nice & happy until it blows up in your face & there should be an understanding at the 17 day marker, how much Good Faith Deposit might be in jeopardy should the buyer Not be able to close after this 17 day period.
Keep in mind too, that should your escrow not close, if that box on pg. 2 is Not checked & now it's day 30 & the buyer has not removed their loan contingency & you are not closed. Escrow is a 3rd party & CANNOT release Good Faith Monies back to the buyer unilaterally. They must have your signature as well to release those funds.
That's when you might put your foot down & say to the buyer "You're not getting squat, until we come to an agreement on how much of your Good Faith Deposit I'm going to keep!"
If you'd like to discuss this further, please shoot me an email directly or give me a call, I don't look back on this same Trulia posting for Answers after mine, or Replies from you beneath my answer.
Emily S. Knell
Realtor Since--- 1996
Realty ONE Group