Originally Posted by snowhite
We moved in the house with the intention to close at the end of August. Seller said he couldn't close because 2nd mortgage was assumed and he couldn't get a payoff until Sept 1st - read at least Sept 6th. So we signed a one month rental agreement. Fast forward to end of Sept. - the day before the closing and again he can't close. Says he is trying to get 1st mortgage to waive some fees. He is short and won't be able to close under (20k) So he files a request with the 1st mortgage the day the closing was supposed to be! Not a short sale - mind you - just a request to waive some penalties and fees. He says if we don't close, he will be foreclosed. Realtors are saying we might close if they waive their fees - how likely is that? We are in the house and need to give him "reasonable time" before we can pull out. Our contract says on or before Sept 30th. We keep waiting and soon our mortgage commitment will disappear. Should we pull out, or stay? Maybe we can buy it from the bank? Then there are legal fees? If we move there are those costs? What do you all think? Anyone know where I can get some valium
I would consider a Short Sale at the table. You have all of the pieces i.e. a real estate attorney, listing agent, loan payoffs and the banks, as well as the seller (who will relinquish his right to approve the sale to the Bank anyway) and a ready willing and able buyer.
While the contract does state (I am assuming you are using the 8 page contract) Absent agreement to the contrary in this contract or any subsequent modification thereto ........If either party is unable to close by th closing date, and all parties are acting in good faith and with reasonable diligence to proceed to closing, such party shall be entitled to reasonable delay and shall give notice to the non-delaying party and the closing agent.
There are other remedies attached to Section 18 and I would review them with my agent as well as try to show some compassion and try to understand what is making the other guy balk under the circumstances as you try to move forward.
Most lenders have some leeway when these type of things occur (I've been there as a Realtor) and in todays mortgage environment, you should find them very understanding and willing to work with you.
Since you're in the process now I would also check to see if the closing attorney represents you and the seller, and if you will need exclusive representation as well as council.
Good luck, stay positive, and positive things will happen!