What are my options? The sellers won't grant me an extension to be able to close?

Asked by Lucky1, Herndon, VA Thu Aug 9, 2012

I am buying a house and my first lender could not brings me to the table and I have to sign extension with daily penalty with the lender telling it will take 48 hours. It's took a week and we could not close so out of frustration, I decided to go with different lender who told me, He need two more weeks because I have everything done. I ask the seller agent to allow my new appraiser to the house they deny him access even though we are still in contract and I am paying daily penalties. I got an email from them a day before my addendum extension will expired asking me to pay hefty money and remove all my contingencies. What should I do? I offered to put more money in EMD and continue to pay the penalty until closing plus all utilities of the propriety I am buying. Please help.

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6
Terry Farnsw…, Agent, Lisle, IL
Thu Aug 9, 2012
Lucky1,

Did you use a real estate agent to represent you in this purchase? You do know the representation on the buyer's side is essentially free right (I ask because it's amazing that both A. people still don't realize that they do not have to pay for buyer representation from a real estate professional, and B. how many people for some reason are adamant to "go at it alone" when purchasing a home.)? We do what you do maybe 5-10 times in a lifetime, 5-10 times a month.....

At this point, I'm assuming you either don't have a real estate agent, or he/she are over their head at this point and not providing you much direction. Otherwise, you wouldn't be here.

Don't walk - RUN to a phone and call an attorney who specializing in real estate. It will be a small price to pay to help you stop hemmoraging money in "per diem" penalty fees.

Log off now, and call an attorney who can help you straighten this mess out. You'll be glad you did.

Hope this helps, and good luck!
1 vote
Vivianne Rut…, , Fairfax County, VA
Thu Aug 9, 2012
Lucky,

Putting "more" money in EMD is NO consolation to your seller IF your financing contingency is still open and you can void the contract at any time.
My big question is: why the seller is not interested in giving you a few extra days???
Most sellers want to close the transaction as much as the buyer does.

Did you offer a low price and now the seller is suffering from "seller's remorse"? Did the appraisal come higher than the contract price and the seller knows they can sell their home for more? Did you ask for a big closing assistance?

This is why it is important to offer a FAIR market price so both sides feel happy about the win-win sale. Unfortunately (and fortunately), you cannot FORCE the seller to give you an extension if the seller is within their legal rights to void the contract. It is entirely up to the seller to agree to the extension or not to agree.

Contact a knowledgeable real estate lawyer to find out your legal options and remember the lawyer can interpret the contract for you but he/she cannot re-write the contract you signed with the seller.
0 votes
John Fitzger…, , Fairfax County, VA
Thu Aug 9, 2012
Hi, Lucky1. I just want to second and reinforce Eric's answer. You need an experienced lender and real estate attorney yesterday.
0 votes
Flo Cannon, , Woodbridge, VA
Thu Aug 9, 2012
Do you have aan representing you? What does your agent advise? This is the time to seek legal advice and be sure to use a good real estate attorney

Flo Cannon,CRS/GRI/SFR
Weichert,, Realtors
Woodbridge, Va.
703-868-1625
703897-4777
0 votes
Erik Weissko…, Agent, fairfax, VA
Thu Aug 9, 2012
Lucky1,

sounds like you may not be so lucky. What does your agent say? In this forum we often answer complaints and help with problems but never hear what the agent says...

Sounds like you used a clown for a lender in the first place and you may or may not have had good representation when purchasing this home. In my 25 years I have never had a delayed closing. It is simply inexcusable.

Did you provide all documentation to the lender in a timely fashion? Did you see if the first appraisal could be "assigned"..there are a lot of steps that got you into this and I presume it will take a few to get you out.

I suggest contacting a real estate attorney...Jim Dargue at Monarch Title is an excellent resource and a wealth of problem solving knowledge. His # is 703.890.0820. He is located in Herndon and has offices elsewhere as well.

Best of luck.

Kind Regards,

Erik J. Weisskopf, ABR,CDPE,CRS,GRI
Re/Max Distinctive Real Estate
703.216.1222
Erik@AskMeAboutHomes.com
0 votes
Monika Kumar, Agent, Reston, VA
Thu Aug 9, 2012
Hi Lucky, It sounds like whoever can help you shall know more than this paragraph. Are you working with an agent who can help you through this?
Bottom Line is if they wont allow extension and give you notice normally buyers have 3 days to remove the contg or contract is void..
I recommend using an attorney to guide you through since there could be more details to know before anyone can give you advise or you act on someones advise Please talk to a real estate attorney, he/she can be found working at the settlement company that you were going to use.

Monika
703 626 3327
0 votes
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