Can selller(in this case Bank) prepone the closing date, after the house is in contract?

Asked by Austinrealestate, Austin, TX Tue Dec 4, 2012

We made an offer on a house (short sale) the bank approved the offer and the closing date was schedule for Dec 29, but the bank wants to close by Dec 25, is this allowed ?

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Maria Cipoll…, Agent, Coral Springs, FL
Tue Dec 4, 2012
Ask your real estate agent to check the sales contract for you. It will stipulates the date that you should be able to close. If your Lender can close on the 25, I do not see any problem but it does not is the case tell your agent that need to be close on the date that originally agreed to.

Best of Luck,

Maria Cipollone

Century 21 Tenace
2 votes
Thanks Maria for the information. I will check the sales contract.
Flag Tue Dec 4, 2012
Kevin Cottre…, Agent, Saint Louis, MO
Wed Dec 5, 2012
Having closed more than 500 short sales in my career, I would note that many of these responses are either addressing the TREC agreement or discussing bank addendums. In many cases, bank addendums commonly modify terms (including waivers as noted as well as Seller (bank's) ability to change the closing date etc) in the original contract and are returned for signature by the buyer before the original offer will be ratified by the buyer.

Now, distinct from a foreclosure sale with addendum(s) from the bank, a short sale typical involves a written approval letter from the bank that is issue either by an on staff negotiator or possibly via a third party negotiator hired by the bank. In many cases, this written letter specifies among other things, the specific date by which the approval requires closing to occur. This may or may not coincide with the original contract. Our experience is its far better to work within reasonable terms than push an issue such as closing per original date and execute an amendment to modify the closing date as needed. If the bank can not facilitate a 29th closing you risk losing the approval all together (as odd as it sounds, we've seen it happen).

My supposition is bank desires to avoid having to staff during period between Christmas and New Years. Good luck.
1 vote
Guy Gimenez, Agent, Austin, TX
Wed Dec 5, 2012
If you have a valid contract in hand, keep in mind that banks do not care what the purchase contract states because banks are not parties to the agreement, and as such they will do as they please. The recognize they have little to lose if the contract falls off due to the bank's demands...regardless of how unreasonable they may be.
0 votes
Austinreales…, Home Buyer, Austin, TX
Wed Dec 5, 2012
Thanks everyone for all the good info. I hope it's not the fiscal cliff that everyone is talking about.
0 votes
Bill Austin, Agent, Austin, TX
Wed Dec 5, 2012
This is a great question for your REALTOR and you to have since you are the ones with the whole of the contract & addendum in your possession. The best anyone can or should say with the information provided is "I don't know." Kevin makes the distinctions between SS and regular contract sales. Approval of your offer does not make a "contract." If it's a short sale then there is still an "owner" that has to sign too. The bank is not the "owner" until the foreclosure is completely done. If this is a cash sale you should be able to close by 12-21-25 which is the date before 12-25-12 that the parties needed will be working (Title & banks).
0 votes
Ruben Ortega, Agent, Round Rock, TX
Wed Dec 5, 2012
Despite your contract date, banks have and can place a date on the approval letter that differs from the contractural date. Your agent should have been given a copy of the approval letter. If this is truly the timeline, I would let your lender know that you need to close per date on the short sale approval letter. You or your agent need to explain to your lender the scenario and stay on them till they close. More than likely the title company will be closed on the 24th and 25th of December. Most short sale lenders require 48 to 72 hours to approve the final HUD-1. So all lender documentation would need to be sent to the title company no later than the 18th of Dec. in order for this to close before Christmas, Dec 21st.
If all fails, have your lender write a letter stating where you are in the loan process. A good short sale agent or negotiator should be able to get the closing date extended.
0 votes
The United H…, Agent, Mansfield, TX
Tue Dec 4, 2012

Alot depends on what rights you waved in the banks own amendment to contract. All I can speak of is the standard TREC form itself. Is closing early necessarily a bad thing for you ? Technically your closing date is not scheduled for the 29th it is set to close prior to that date it self. The bank , your lender and the title company and the speed in which they work dictates on how fast the property closes. I would edvice you to speak with your own real estate agent and see if there is a way to schedule closing for the 29th the bank reserves the right to close when they want in most cases however I don't see why you wouldn't be able to close after they do once again it depends on your particular case. The title company, agents and all parties in fact should be contacted about your desire to close according to your schedule. In regards to a short sale it self, the party responsible for signing ont the banks end might not be present on the 29th, SEEK MORE DETAILS!!! There is a reason I think its the holiday season but who knows.

Keller Williams Realty
3xUS Army Veteran
Joseph Fernandez
cell: (817)975-7258
off: (817)635-1157
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue Dec 4, 2012
You want to refer back to your contract, but my first response would be ...that's great...we'd love to close on 12/25. Will you be open to sign, will the banks be open to transfer money, and will anyone be at the title company?.....if not, we need to close before 12/29 as indicated in the contract.

Probably someone at the short sale bank is going on vacation and will not be there to sign. This is a very tricky time period. I would get the agents involved and find out who when where what time and who else can sign and work contracts during this time period. If you don't do this you could well be closing in January.
0 votes
Ashley Brink…, Agent, Austin, TX
Tue Dec 4, 2012
Read your contract (there is a Tx contract, but usually an addendum to that contract the bank has of its own), but it does usually say ON OR BEFORE.
Now, if the lenders do not have your documents ready by then--AND if they can't find someone who actually will be open/working on Christmas day, guess they won't be closing Dec 25.
I haven't ever really heard of that happening-especially on a day when title co offices and banks are closed.

Good luck!
Ashley Brinkman
0 votes
Thanks Ashley, I appreciate the reply.
Flag Tue Dec 4, 2012
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