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Old 10-18-2013, 09:01 AM
 
42 posts, read 129,174 times
Reputation: 27

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I realize that the ultimate decision on whether to stick with our USDA-loan buyers is ours, but perhaps some other posters can show us pros and cons we haven't thought of yet to both staying the course and walking away.

Sparing everyone the extremely long background story: We've been dealing with some personal/family issues with regard to housing since Sept. 2012, so this incredibly stressful ordeal has actually been going on for 14 months, not just a few months. This is relevant because the mental and emotional toll it has taken on us is far, far more than what it would have been if we hadn't already gone through several months of hell before finally deciding to move.

I will also skip all the mess we went through with the purchase of our current residence, except to say that in our circumstances we had to buy the new house before selling the old one. Staying in a temporary residence or showing our old house while we still lived there were not viable options.

So after going through all that, we finally put our old house on the market. We had had the foresight to get a home inspection ahead of time by a licensed, reputable company, and using that info, we had licensed contractors fix nearly everything in the report, plus add many updates such as hardwood floors. It is rare in our area to find a house in the country that is within 30 minutes of the metro area *and* reasonably priced *and* in any sort of move-in condition, much less updated. Listing it was like throwing a piece of meat into a piranha tank. Forty-eight hours after it listed, we accepted an offer for 99% of list value with absolutely no concessions requested and no inspections except for the mandatory termite inspection. We thought that finally, after over a year of misery, there was a light at the end of the tunnel.

Well, not long after we had signed all the papers, the government shutdown occurred and the USDA closed down. The buyers' lender did not have the papers turned in to the USDA before the shutdown happened. We're pretty sure our closing date isn't going to happen, because there were more days in the shutdown than there are from now until our closing date. (I asked in another thread if anyone knew how to find out the extent of the USDA loan backlog now that it's open again.)

If the buyers cannot provide a USDA written loan commitment at least 3 days before closing, the purchase agreement is null and void. So here's the big question: Do we grant an extension, or do we walk? The buyers are good people and they want to buy the house as badly as we want to sell it. We truly would like to sell to them. However, neither we nor they are made of money. Also, our realtor told us that there are a lot of people on a waiting list who want to view the house. It has been beyond frustrating to know all these people want to see the place and we aren't allowed to have it shown until time runs out on an offer we know is worthless.

Every day that house sits empty is like flushing money down the toilet (still, in our circumstances, it's better than the alternatives I mentioned above). But it's getting to where we're more concerned about the toll this is taking on our mental, emotional, and now physical health than about the money. I don't know if we can handle extending the contract, knowing that we might have to re-extend and re-extend. We don't want to lose our shirt on this house, but we need this all to be over so we can get on with our lives. We *hate* drama, and this has been nothing but drama for 14 months and counting.

Our realtor can't advise us much because he's a dual-agent. We are never doing that again. We thought dual-agency would better facilitate communication, since that was an issue during the purchase of our current home. Instead, we are running into a brick wall because he can't show favor to us or to the buyers. He maintained through the shutdown that we should just sit tight and wait things out, because we may not get as good an offer or as "clean" an offer if we walk.

So... Pros? Cons? Thoughts? Ideas? Thanks so much, everyone, for your time.

Last edited by wide-eyed; 10-18-2013 at 09:17 AM.. Reason: clarity of title
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Old 10-18-2013, 09:07 AM
 
42 posts, read 129,174 times
Reputation: 27
I forgot to mention that one of the reasons we might want to walk is if the USDA is backed up so far that it might be faster for us to find and close with a conventional-loan or cash buyer than to wait with our current buyers.
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Old 10-18-2013, 09:49 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
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Normally, under normal circumstances, I would never recommend this.........and to follow thru on this recommendation, I would want a ton of supporting documentation. If I were 100% satisfied this was a viable buyer, meaning credit was good and income was there, nothing quirky on either, I would consider a preoccupancy and let them pay you rent to avoid having to carry 2 homes. If they could not do that, I would insist on a contingency that could bump their contract. Many areas in the country have cooled down, but if it's a quality home in a major area, it doesn't sound like you have much to lose.

Anyway, either way, you're covered and not being the bad guy and can sleep at night. (And this is 100% business and not about being nice........but there are certain things I would personally need from myself to look in the mirror).
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Old 10-18-2013, 10:48 AM
 
42 posts, read 129,174 times
Reputation: 27
Thanks so much for your advice.

Quote:
Originally Posted by SmartMoney View Post
Normally, under normal circumstances, I would never recommend this.........and to follow thru on this recommendation, I would want a ton of supporting documentation. If I were 100% satisfied this was a viable buyer, meaning credit was good and income was there, nothing quirky on either, I would consider a preoccupancy and let them pay you rent to avoid having to carry 2 homes.
We (sellers) have discussed renting to the buyers but are not sure that it wouldn't just add to the stress, for many reasons. In our specific case, carrying both houses is probably the lesser of two evils.

Quote:
Originally Posted by SmartMoney View Post
If they could not do that, I would insist on a contingency that could bump their contract. Many areas in the country have cooled down, but if it's a quality home in a major area, it doesn't sound like you have much to lose.
To clarify: Does "bump" mean bump it forward as in granting an extension? What sort of contingencies are available for us to consider? And yes, a home like ours in this area is much in demand. The buyers have been looking for a house like this for over a year, and it took us a year and a half of searching before we bought it back in 2000. Our part of the country also doesn't have the big ups and downs and bubbles like many regions do.

Quote:
Originally Posted by SmartMoney View Post
Anyway, either way, you're covered and not being the bad guy and can sleep at night. (And this is 100% business and not about being nice........but there are certain things I would personally need from myself to look in the mirror).
Yes, that's the other thing--this setback is no more the buyers' fault than it is ours. They have been very easy to deal with, and we (sellers) are trying to strike a balance between being considerate of them and keeping our own finances, and more importantly our sanity, intact. We're the kind of people who tend to screw ourselves over by being "too nice." On the other hand, we just don't know how much more "house drama" we can handle after all this time. But that's exactly why I'm asking questions on this forum--to get some outside opinions, ideas, and info we can ponder.

Thanks again!
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Old 10-18-2013, 01:45 PM
 
42 posts, read 129,174 times
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I am, of course, counting my blessings and being grateful for all that I at least for now still have--really helps to get me through this!

Last edited by wide-eyed; 10-18-2013 at 01:46 PM.. Reason: clarity
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Old 10-18-2013, 02:07 PM
 
3,317 posts, read 7,251,326 times
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What if you could look back and say, "I sure am proud that I stuck by that nice buyer, even though it was an annoying delay, because it was just the right thing to do." Karma.
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Old 10-18-2013, 08:47 PM
 
42 posts, read 129,174 times
Reputation: 27
Quote:
Originally Posted by Pfhtex View Post
What if you could look back and say, "I sure am proud that I stuck by that nice buyer, even though it was an annoying delay, because it was just the right thing to do." Karma.
A good sentiment, and I sure hope it turns out that way! The thing is, the events of the past 14 months went way, way past the "annoying" stage long before we even decided to sell the house. The delay is like a final kick in the teeth. The situation has gotten to the point where it's becoming a health issue, which is scary and muddies the waters as to what truly *would* be the right thing to do. If we hadn't already been through so much, granting an extension would be a no-brainer. As it is, we are doing a lot of soul-searching and fact-gathering in order to make a wise decision.

Thanks for your post. More food for thought. Again, we do hope we will be able to sell to these people, because they *are* nice buyers.
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Old 10-19-2013, 06:33 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,297 posts, read 17,491,099 times
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In your OP, you said something about "running into a brick wall" because you can't show it to other potential buyers. I don't get that. Back up offers are common in the area we just sold. Having a ready back up offer might ease your stress kevels, or prove that the current offer is really worth the stress.
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Old 10-19-2013, 07:30 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
Reputation: 8078
Yes, technically it is the "buyer's fault," but I suggest the actual fault lie with our elected officials that let this country down. You have to do what is best for you. I seriously doubt anyone here is going to tell you to tell your buyers to take a hike without looking for possible solutions. You, yourself have said the buyers have been great buyers and it sounds like all the housing drama has been on your side of the isle with your current residence. Looking for a solution where everyone wins is not being "too nice," it's being human.
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Old 10-19-2013, 07:52 AM
 
42 posts, read 129,174 times
Reputation: 27
Quote:
Originally Posted by Jkgourmet View Post
In your OP, you said something about "running into a brick wall" because you can't show it to other potential buyers. I don't get that. Back up offers are common in the area we just sold. Having a ready back up offer might ease your stress kevels, or prove that the current offer is really worth the stress.
Back up offers? I didn't think those were allowed once an offer had been accepted. I will definitely ask the realtor about that. Thank you!!

Last edited by wide-eyed; 10-19-2013 at 08:15 AM..
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