Home Selling in Los Angeles>Question Details

Linleecla, Home Seller in Los Angeles, CA

Buyers are taking to long to get loan approval. 2 weeks pass closing date. I need a real estate attorney

Asked by Linleecla, Los Angeles, CA Thu Mar 10, 2011

Escrow officers seems to feel the paperwork that the buyers underwriters is asking for is not a big deal yet they are not signing off on loan contingency. We're 2 weeks passed closing date as of now and still waiting. I thing the buyers are stalling, I want to move on and I want to keep their deposit.

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Hi Linleecia,

In this lending environment, this very typical...what is your agent telling you? Lenders are asking for last minute things all the time, but your agent can call the lender directly and get a feel for if this is stalliing or legitimate lender requests.

As far as the deposit, if they have not signed off the loan contingency, then you are most likely not going to get the deposit. That's what the contingency is for....and I would never allow my buyers to sign off on any contingency until they were done...including final loan approval. This is a perfect reason why.

Remember that if you do start over, you are about 30 days away from closing, at best...my advice is to get your agent to research what's going on, if these are real last minute lender requirements, it might be best to give it a few more days and just get it done.

Good luck,

Karen
0 votes Thank Flag Link Tue Jun 28, 2011
Give the buyers an ultimatum, have the title company give them a deadline. You are already beyond the reason of the contract in time, the time they have taken now is been because of your good nature, and at this point it has been taken advantage of, Tell them if the deadline is not met they will lose their earnest money for breaking the deal.
0 votes Thank Flag Link Sat Jun 18, 2011
I would first relax, then speak with your agent and trust what the escrow officer says. It is not common that loans a taking a little longer than usual right now, give the buyers a specific extended date, possibly put the property active in the mls with their permission until this contingency is removed. The best bet-speak with your agent, this is why they represent you.

Good luck!
Heather Paul, Realtor
Coldwell Banker
(310)586-0364
0 votes Thank Flag Link Fri Mar 11, 2011
You could have your listing agent follow up with the buyer's lender directly (if they have not already been doing so). Perhaps you could request something in writing from the lender explaining the delay. It is not uncommon for loan delay these days. It could be for various reasons. Find out if buyer has received the conditional loan approval (or underwriter approval) and what they are stating "conditions" are (or what it is the underwriter is asking for in order to approve the loan). If you give the buyer's a Notice to Perform, they have to remove their contingency or cancel the sale. You risk the possibility of the transaction being able to close with extra time depending on the situation of buyer's loan. Good luck.

Sara Mehrpouyan
Rodeo Realty
Direct: 818-903-2040
0 votes Thank Flag Link Thu Mar 10, 2011
Hi Linleecla,

Your agent should talk to the buyers' agent (which I'm certain has already happened) and the lender. If the buyers really want the property, they should be able to offer some sort of compensation to you as one of the earlier posters mentioned Since they haven't removed the loan contingency, you are not going to get the deposit that easily. However, if you send a for for the buyer to close or a demand to close escrow or cancel the deal, then you yould remarket your property and get another buyer. Look at paragraph 14, item F of the offer contract.
By the way, what is the hold up and why do you say the escrow officer isn't concerned? That sounds a little odd. Everything is important during an escrow and all stated date are
Good luck!
Lynn LeGlaire
0 votes Thank Flag Link Thu Mar 10, 2011
No need for an attorney yet. Exhaust your Purchase Agreement options first. Get your agent on the job, or talk to the agent's broker. You probably have options for Liquidated Damages you can claim, but there is a procedure your agent and you need to follow. John below has already given you those answers. Now it is up to your agent to start to perform their duties to you.
0 votes Thank Flag Link Thu Mar 10, 2011
Linleecla,

If you want to force the buyers to act now and if you feel they are stalling, you need to work with your agent and send them a "Notice to Perform", instructing them to remove their loan and other contingencies within 2 days (or whatever time period you decide) or the seller then has the option to cancel the agreement. You will likely not be entitled to keep their deposit if they have not removed their contingencies, as the loan contingency is still in effect, even if it is beyond the time period specified in the contract. But at least you can force them to act and either get them to remove the contingencies or allow you to cancel the deal and move on. Good luck with your situation.

John Barry
DRE #01856079
Coldwell Banker Residential Brokerage
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
Facebook: http://www.facebook.com/RealtorJB
Twitter: @RealtorJB
0 votes Thank Flag Link Thu Mar 10, 2011
Hi Linleecla,
Your must refer to your purchase contract and find out if you're ENTITLE to keep Buyer's deposit due to Buyer's breaching the contract. If this is what you really want, just cancel and keep the deposit and move on. Otherwise, you may have Buyer's sign a per diem agreement for the days passing the closing date. Everything must be in writing and signed by all parties involved.

Best wishes,
Doug
Web Reference: http://cashrealty.net
0 votes Thank Flag Link Thu Mar 10, 2011
Lin, if your agent is not helping you through this contractual situation, then go to your agent's broker for help. Since the buyers have not released the loan contingency, you have no recourse or right to their deposit. In California we do have systems for you as the seller to demand that they comply to the contract or you can then cancel the sale and go back on the market, but your agent and possibly your broker ("owner" of the brokerage) will need to explain your contract and your choices before you make a decision. I doubt that you need to spend the money on a real estate attorney at this point. If both your agent and the broker are not willing to work for you, then go to the Real Estate board in your area, probably either SRAR in Van Nuys or the Beverly Hills board, whichever your agent is a member of, and ask for their guidance.
0 votes Thank Flag Link Thu Mar 10, 2011
The person you need to have YOUR agent have a conversation with is the Loan officers' PROCESSOR, that's where I am always able to get to the meat & potatoes of what the buyers' issue is.

Have that conversation first, & if you have to, tell the processor to be truthful with you because you're about to cancel everything & keep the buyers' deposit.

EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
0 votes Thank Flag Link Thu Mar 10, 2011
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