Thanks for all of your guidance here. I promised to provide an update, so here it is.
A couple of other background pieces for everyone. This is an investment property for the seller and there are tenants in the property. We are/were planning to leave the tenants in place and use the property as an investment until we needed to use it for ourselves.
The seller is a Trust, who has the current title. The debt on the property belongs to the beneficiary of the Trust and behind the scenes was working a short sale arrangement with a bank. The short sale was approved, but the bank invoked a 120 day waiting period. Thus the request to extend COE.
We agreed to an extension provided our cost of money was covered. That was not acceptable to the seller and they came back with multiple complex, complicated deals that would result in the buyer (us) lending the seller the money outside of the escrow process. We did not go down that path as it would entail retaining legal counsel, accountants, etc....
To make a long story short, we cured them, and another complex alternative came back. We said no and provided an option to agree to the extension, but the seller was to provide the buyer a per diem, as the buyer would have to do in the reverse situation.
A couple of days past, and then the realtor rellisted the property, even though we are still in escrow. The price went up, and mention was made of the extended close requirement. Vague references are made to contacting the realtor for more details on financing.
We are working with the realtor and title company on the next steps as we are prepared to close escrow and they are not. So not sure what will eventually happen, but unfortunately it appears it is a lose-lose for everyone.