I'm hearing you say that the buyers have a mortgage commitment with a high rate they say that they cannot afford. The bank is the one saying that they CAN afford it by issuing the commitment. Frankly the banks have been crossing the t's and dotting the i's so I would be hard pressed to believe that they made an error.

Once the commitment was issued the contingency clause should have been removed and clearance to close should have been given by the bank .Unless the buyers caused the commitment to be withdrawn by the bank I think that the buyers are having second thoughts about purchasing. Perhaps they are forecasting a loss income in their future.

Since I am not an attorney I would say that your next move should be discussed with the person representing your legal interests. Perhaps it's best to move onto another buyer and arrange some sort of penalty for taking your home off the market during the contract period. Again discuss this with your attorney.

Best of Luck and you may want to try and win $1,000 by visiting my website and enter under the buyer's tab.
http://www.exittogreenrealty.com

Barbara Korabel
Broker of EXiT To GREEN Realty

Tony, Hopefully you have by now gotten through this situation. If you really want to sell then stick to your guns. If being a short-term landlord is acceptable then leasing/selling could be an option for you. (By the way your location says Lagrangeville, but your question implies that the property you are selling is in Kingston 12401.)

For future reference the lease agreement usually ties the seller to hold the property for the buyers unless the buyers change their minds. Rent payments made go toward the purchase price if the buyers agree to purchase after a stated amount of time.
The buyers may be stalling for a lease agreement so that they have more time to amend their situation in the eyes of their lender (i.e. repair a credit score or put down a higher down payment.)
Your real estate attorney would draw up the agreement. Just be certain you use a real estate attorney practiced in lease to purchase agreements. For more detailed attorney information I recommend contacting the Dutchess County Bar Association. They have an online referral service located right on their website.

By this time your decision has likely been made. Best of luck in your future real estate transactions!

Hi Tony,

You may have solved your issue, but if not, please speak to your attorney and think through the Lease with Option to Buy situation carefully - because you will be a landlord collecting rents and dealing with headaches.

If they are putting down 5%, then they should look to an FHA for financing. If lenders are giving them a high interest rate it's because they are riskier than someone who might have a better credit score, downpayment, etc.

There are several buyers out there and we just put a couple properties in Kingston in contract with strong buyers.

Stay focused and consult with both your agent and attorney.

Best,
Cree Quaker
cree@barqua.com

Hi Tony:

What does your Realtor and/or Attorney say ? Leasing a home does not work for a seller because a seller wants to sell a home not to lease a home (otherwise, you can be a landlord); unless, of course, you are willing to do a Lease with Option to Buy, but then again, would you want to do this with a wobbly buyer?

You should sell your house according to the terms you have agreed upon and if the situation has changed, then you have to decide if you want to stick with this buyer. Was there earnest money in this deal? If so, could you get them out and get the earnest money for the time you keep the house off the market?

I assume they have not removed contingencies, but just let the time frame expire. Again better check with your Realtor/Attorney and see how you can get out the contract and get earnest money from the buyers if you are entitled to and put your house back on the market to find another buyer ASAP!

Time is of essence here.

Best,
Sylvia Barry
Marin Realtor

Tony
Have you seen the link below?
97 homes have recently sold. So the problem is not that homes are not selling, the problem is that your home is not sold.

This poses a couple of questions:
1. Is this the best buyer?
2. Did your Realtor TALK with the buyer's lender to find out exactly what the problem is?
Interest rates have dropped dramatically in the last few days.
3. Is the problem that the buyers do not qualify?
or does your home not appraise for the purchase price?

I don't know how it works in your area. In my area when a buyer's offer is accepted they have 17 days to get their financing. In my case, as a listing agent, I require them to be qualified by a lender that I know and trust.
Has anyone else qualified your buyers?

One of the key hurdles to getting a home sold is financing. There are may lenders out there that simply have no idea what they are doing in this market.

Answer, post more, and good luck.

.I_t seems to me that you have contracted for a sale & now these buyers (who don_t seem to be able to make the commitment} are trying to fish you into something you have never agreed to. You have not signed a lease agreement--you have no obligation to thisl As painful as it seems(I know you were looking forward to closing) I would run away as fast as i could from these people. You do not have to be pushed into an unwanted lease agreement & can probably keep the deposit thru default on their part. What does your agent recommend?