Home Selling in 97446>Question Details

figure_skater, Home Seller in Berkeley, CA

Buyers want another extension for escrow - what's up with that? Can I deny it?

Asked by figure_skater, Berkeley, CA Sun Dec 30, 2012

Buyers already asked for a 10-day extension on their escrow closing, which I already granted. Now they want another 12-day extension on top of it.

Why would a buyer need this?? Does it mean there is something wrong with their credit or is the bank just being slow in pushing the paperwork through. I realize it's the holidays but this seems like a lot in extensions.

If I don't agree, that means the whole deal falls through - is that right?

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Answers

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You are working with a Realtor are you not, because you have asked other contract related questions. Your Realtor should be able to connect with the lender, or the loan officer and find out, or find out from the Buyers Agent why the extension is needed.

Remember if you have a buyer, and it is only a question of time, paper work or just bank delays,
you want to keep your buyer, it is easier to work with an existing buyer/contract than finding a new one and go through similar obstacles down the road.

You should discuss your options with either your real estate attorney if you involved one, which would have been a very recommendable decision, or at least with your listing agent, your Realtor, he or she should be able to give you some information and/ or advice on this ..... as they know the circumstances, the contract terms etc.
Hope this helps
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
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0 votes Thank Flag Link Tue Jan 1, 2013
Again, I appreciate your response Edith.... good thought about trying to find another buyer again. I'm on the fence about this transaction, but it's definitely something to consider. I just feel torn because this whole transaction leaves a bad taste in my mouth due to my own realtor. :( Wish I had you as a realtor!
Flag Tue Jan 1, 2013
If you dont agree that means you dont have a buyer. You may ask the buyer why the extension is needed...but I know that on a transaction I just went through we also had to do 2 extensions due to the banks not being able to get paperwork completed on time. I hope it all works out well for you.
0 votes Thank Flag Link Mon Dec 31, 2012
Thanks Lana.
Flag Tue Jan 1, 2013
You should never just grant an extension without first asking why the need it, what is the problem, what is the solution and how long will it take to fix it. It is common for delays in mortgages and there are justofied reasons to ask for an extension. You agent should be asking and letting you know, if not you need to ask. It is easier to gove them an extension if they have a solution than start your search for a new buyer.
0 votes Thank Flag Link Mon Dec 31, 2012
Hi, Unfortunately this type of thing happens often in this business. It could bethe buyers fault but most often it is the bank. I've seen things from appraisal report issues to documentation needed from an external source. I would find out exactly what the hold up is and then make your decision.

Chris
0 votes Thank Flag Link Mon Dec 31, 2012
A bird in the hand is worth a dozen in the bush. Yes, denying the request kills the deal. Is that what you really want to do? Start over? Do you think you can find another buyer and they will be ready to close in less than 12 days? Probably not.

However, you have the right to know why they need another 2 weeks before agreeing to the extension. There are some lenders in my area that are taking months to close a clean deal, much longer if everything isn’t in line. Nothing at all wrong with you requesting a joint meeting with the buyer and their loan officer if the claim is that it is the lender’s fault, Relators included of course.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Mon Dec 31, 2012
I have a home currently under contract which has required six extensions and still has not closed.
Yes, it started with the lender.
Then the attorney.
Then the Judge.
Then back to the attorney.
Then the insurance company.
Now the lender needs to complete another evaluation.
In the end, the buyer could walk. Then guess what,,,,the seller repeats the whole thing.
That could be the option you will be facing.
A bird in the hand.....you know the rest.

Assuming the buyer has been properly vetted you need to cooperate and do what ever it takes to make the deal work. An extension is not a big deal, although, they do cause anxiety, uncertainty and great inconvenience.
0 votes Thank Flag Link Mon Dec 31, 2012
In this market, there are few clear right or wrong answers. There's really just what you can accept. In this case, if you're selling your home to a financed buyer getting a conventional loan from a bank, then it is quite likely they've hit delays in their final approval. (I've had several cases this year where the bank took an extra 3-4 weeks past their initial estimate, but fortunately, the sellers were accommodating and we closed on all of them.)

The holidays certainly can add several days or weeks to the process. Otherwise, we could be looking at second appraisals, incomplete records, or just really nitpicky underwriting. As Priscilla suggested, you should have your agent inquire about the exact issues going on. Maybe you just need to hold out for another couple of weeks or if it's looking really bad, you can start over again.

But, keep in mind that if you're looking for the top dollar on your sale, you'll most likely sell to a financed buyer and this lending delay can very easily come up again.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon Dec 31, 2012
Have your agent get some real answers about what is going on. You should be able to find out, then, whether their financing is falling through. When you have the answers, you can make an informed decision. Best wishes :)
0 votes Thank Flag Link Mon Dec 31, 2012
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