We happens if we miss the escrow close date?

Asked by lilpogi03, San Pedro, CA Fri Apr 26, 2013

We have been in escrow since mid February. They keep saying we should be done this week, then we hear it should be done next week, then next Friday and so forth. Finally they were like, you'll be signing on Tuesday. Tuesday came and they said, the paperwork is not ready because UW needed to verify something else. Now we are 2 days from escrow close date and have not signed anything. Are we going to lose the home? Will we get our deposit back?

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8
, ,
Wed Jun 12, 2013
I am too late on this, but this person needs a better lender. The trouble is most lenders are refinance lenders and do not understand this issue.
In this case the seller can cancel the sale and keep the escrow. There problem is there a so many buyers out there right now, sellers are getting higher offers and are tempted to do just that.
If you would like a real lender to handle your purchase contact me.

949-930-1210
0 votes
Anna Ki, Agent, las vegas, NV
Sat May 25, 2013
You can definitely speak to your Buyer's Agent regarding getting an extension. Typically, if there is good communication between the listing agent and buyers agent, a lot of problems can be avoided. In addition, I would contact your lender to get a definite closing date or when they expect to get loan documents. I would also have your lender contact the listing agent and escrow to inform of the new closing date. You should not lose your deposit if the matter is handled properly.

If you need any help, please feel free to contact me at annamaria@southbayluxuryhomes.com.

Anna Maria Kitras, Broker
HomeSmart - http://www.newlistingsinthesouthbay.com
323-608-4881
0 votes
, ,
Mon Apr 29, 2013
Well it depends on why the closing is being delayed. It sound like it may be the lender which is very typical.
As strange as it may sound, most lenders do mostly refinances and do not understand the importance of closing on time. Also they tend to not meet most of the deadlines outlined in the purchase agreement for example:
1. There is a deadline to have the appraisal done, and remove that contingency.
2. There is a deadline have the loan fully approved, and remove that contingency
3. As you can see there is a dead line to have the loan closed on time.
I am sorry this is happening to you, at this point though it is too late to jump ship, you are stuck with them.
0 votes
Robert Chome…, , San Diego, CA
Fri Apr 26, 2013
Is it your loan that is being delayed?
0 votes
Ron Thomas, Agent, Fresno, CA
Fri Apr 26, 2013
Did it ever occur to you to talk to the Escrow Company?
It really sounds like a Shortsale; which would mean that you have a Buyer's Agent;
What does he say?
0 votes
Michael Magaw, Agent, Torrance, CA
Fri Apr 26, 2013
These are great questions. What is your agent telling you? Or did you represent yourself?

Read your contract closely and carefully. The information you are seeking is in the contract. You agreed to certain contractual obligations. If you do not meet those obligations, then the seller will need to decide how he wants to handle it. Maybe you get an extension, maybe not, or maybe you agree to a pre diem penalty.

Have you removed all contingencies, including loan? If not, this is also a point of negotiation. If yes, then read your contract about how it affects your deposit in the case of cancellation.

Maybe your lender can help convince the seller that you really are going to close soon. But talk is cheap, so it would help if the lender can show that docs are being prepared.

Good luck.
0 votes
Jenna Christ…, Agent, Redondo Beach, CA
Fri Apr 26, 2013
you have likely signed off on your contingency removal so they could sue for the deposit but likely, they would rather have you go away and start w a new buyer unless there's reason to believe your lender is able to perform within a forseable time. your lender sounds bad - unless your credit history and all is complicated or you're a borderline borrower.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Fri Apr 26, 2013
HI lilpogi03,

Your Realtor should prepare an Extension of Time Addendum to extend closing. Have them extend at least a week (if not more) so you don't have to keep doing extensions. You can always close sooner than the date on the extension - it doesn't have to be that exact date. If you don't do an extension, you legally no longer have a contract to purchase the home.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
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