My house was supposed to close a week ago but sellers were not ready until today. About 2 weeks ago, i started arguing with my lender about the payof

Asked by kllwalden, Huntington Beach, CA Wed Nov 20, 2013

and haven't settled yet. Can I cancel? Do I have to advise escrow with anything in writing?

Help the community by answering this question:

+ web reference
Web reference:

Answers

10
Scott Godzyk, Agent, Manchester, NH
Wed Nov 20, 2013
If you are under contract, you may not be able to just cancel and walk away without any recourse, You could lose your deposit as one. You should seek advice from your buyer agent and if you do not have one, speak with an attorney who can review your contract and let you know what you should or should not do
1 vote
Teresa Karich, Agent, Huntington Beach, CA
Wed Nov 20, 2013
You can cancel, but your deposit money will be in jeopardy. Especially if you removed contingencies in writing.
1 vote
Alex Montelo…, Agent, Seal Beach, CA
Mon Dec 2, 2013
Every transaction is unique in its own. No two are the same. Having said that.... the agents should have been on top of the contract dates. It is not unusual for a pending escrow or sale to exceed the original projected close date. You've come a long way from the beginning. as long as you have a buyer that is willing to buy and a seller that is willing to sell, I think the problem can be worked out. I am sure that the payoff amount will change along with the close date but it shouldn't be much since we are only talking about a couple of weeks, right? Hang in there. That's my advice. Unless you feel like shaking things up to only end up starting from scratch. I wish you the best. Please keep us posted on how it plays out.

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic#01456982
0 votes
Kevin and Ju…, Agent, Wildomar, CA
Mon Dec 2, 2013
Why cancel? Sounds like all parties need to communicate better and just get it done.
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Wed Nov 20, 2013
It sounds like you are the seller here.

So is your problem with the buyer or with your lender? It sounds to me that even if the buyer WAS ready to close last week that YOU weren't ready because you were arguing about the payoff with your lender.

Another question is, what does the purchase agreement say? Has the window to close come and gone or was it extended? Also, does it list any provisions for what happens when that date passes? That piece of paper could be an indication of whether you "technically" can cancel.

I don't have all the details, but in my opinion you shouldn't punish the buyers because of an argument with your lender. They have moved forward in this transaction in good faith and have come a long way to get to closing. If you cancel, you're still going to need to pay your lender and if you want to sell you are going to have to start back at square one. Are you willing to risk that, along with pi$$ing off some buyers, their agent, and probably yours??

If none of that bothers you, then by all means go for it. I don't have a dog in this fight, but my two cents are that you want to sell (obviously, otherwise why would you list the home?) and you have a willing buyer who is ready to close, so what good reason is there to back out at this point? Does doing so accomplish anything?

I would think about that and consult with your Realtor.

Best of luck!
0 votes
Thanks for info. Yes, the closing date came and went 8 days ago. At that time, buyer was not able to perform but neither agent notified eachother nor put anything in writing to put in escrow for extension to close. The payoff is now a side issue and escrow is pressuring me to go in and sign papers dated for the 11th of this month. Is that even legal? wasn't the contract null and void once the closing date came and went and nothing was done between either party? On top of it demands or expired, new payoffs exist, etc. Don't new escrow instructions need to be done. $10,000 is a big difference to me. I feel bad for the buyer but isn't that why I am paying the realtor 6% (30,000) in fees? Doesn't he have a fiduciary obligation to come to me once the closing date was past? Give me a right for an extension/addendum (don't know the verbage) and give me the option to cancel, retain the deposit and obviously notify the buyer's agent? no other contingencies present. thx
Flag Wed Nov 20, 2013
Great advice, Tony!
Flag Wed Nov 20, 2013
JR Thrasher, Agent, San Diego, CA
Wed Nov 20, 2013
Your question is confusing. The category is home selling, but you refer to the seller. Then you talk about a payoff like you are the seller. I don't think any of the answers you received could be accurate until you re-phrase your question.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes
, ,
Wed Nov 20, 2013
Well you see sellers canceling all the time when buyers default so I would guess that what is good for the goose ...

I am not recommending it though
0 votes
Alexander Gr…, Agent, San Jose, CA
Wed Nov 20, 2013
If you still want to buy the house and need a new lender, I would be more than happy to help you.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes
Thom Colby, Agent, Irvine, CA
Wed Nov 20, 2013
This is a little confusing - You say YOUR house was supposed to close but the SELLERS were not ready...... Are you the Buyer or the Seller?
Then you said you started arguing with YOUR Lender about the payoff - again are you the Seller or the Buyer ???

Assuming you are the Buyer -
Did you and the Seller sign an "Extension of Time" or any other Addenda extending the closing date past the original date? Was the date a specific date or did your Purchase Agreement specify something like 30 or 45 days after acceptance? Without knowing all of the details, there is no ability to provide direction for you. One thing is fairly certain, if YOU cancel, any money you have in escrow is likely going to the seller. That said, Escrow cannot cancel and money cannot be disbursed without both Buyer and Seller signatures.

If everything has been delivered to escrow (including all monies due from you) the transaction will very likely close today and you will be notified when its completed.

Check with YOUR agent. If you are using the Seller's agent - good luck!
0 votes
Cyndi Mino, Agent, Huntington Beach, CA
Wed Nov 20, 2013
You can cancel but you could forfeit your deposit. Please look at your contract and read the fine print regarding how much you can lose if you default on the contract. Defaulting is the period after your contingencies have been signed off. There are always special extenuating circumstances so I would advise that you see council from a Real Estate Lawyer. Talk to your buyers agent and escrow to find out exactly whats happening on the part of the sellers.
0 votes
Search Advice
Search
Ask our community a question
Home Selling in Popular Huntington Beach Neighborhoods

Email me when…

Learn more