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I have sold my home and am relocating to another state. My buyers are well-qualified and, to use my realtor's expression, "really want the house".
I know I am supposed to have all my possessions gone by closing, although I have, I think 5 days to physically vacate the property.
My fear is this: What if the closing is cancelled or delayed at the last minute, and I have my stuff in my new place, or at the least, in storage?
This would be a real pickle for me. I have lost a lot of work because of the move. Two of my three jobs will let me stay if the move gets derailed, but the third one is lost. It is a clinical position at a day care center, and I will be finishing at the end of the summer session, in mid-August.
And if the closing gets derailed, then I would have the expense of moving my stuff back into the house, of maintaining my house expenses, and of either maintaining my new place or giving it up and losing the rent money. Of course, I might be able to rent out my house, but that takes time and I need to pay my monthly expenses. I do not yet have a job in the new location.
Meanwhile, the buyers put down a deposit of $18,000 to secure the house. There has been, to my knowledge, only honest dealing; My lawyer told me that they get that money back if the house doesn't close, e.g. if they don't get their mortgage, or for whatever other reason. For all we know, someone could die the night before the closing.
But where does that leave me, in terms of lost wages, additional moving expenses and monthly expenses?
This is a major problem & risk. i had a client half way across country after he closed when we recieved a call that morning that the buyer filed bankruptcy.
It's nice to have a 2-3 day lease back after closing so you can have the movers out after you've closed & gotten your money. This is pretty common and works for many sellers. Your agent should be able to put it together.
With the current lending market most sellers are asking for COE+3-5, meaning posession 3-5 days after close of escrow. If you didn't negotiate that in your original contract talk with your agent/attorney about that. Have the movers plan to be there a couple of days after close.
Our seller wanted that deal, but we were nervous about renting back because of the liability. I understand how it can make things more convenient, but then the buyer becomes a landlord.
Meanwhile, the buyers put down a deposit of $18,000 to secure the house. There has been, to my knowledge, only honest dealing; My lawyer told me that they get that money back if the house doesn't close, e.g. if they don't get their mortgage, or for whatever other reason. For all we know, someone could die the night before the closing.
Does your contract have a mortgage contingency and if so, is there a deadline for a commitment?
The mortgage contingency was 30 days, if by that you mean the time the buyers are given to get their mortgage.
The contract was signed July 8, which gives them until August 7 to get their mortrgage. Today is August 3. The bank appraiser came by this past Thursday, July 31, to appraise the house, but since then I have heard nothing.
Apparently, no one seems worried about their getting their mortgage, as they have very high credit scores and high income jobs. My realtor is has urged me to pack and to hire a mover.
I don't want to let go of these buyers because they gave me my best offier by far.
My lawyer said I can give the buyers a grace period if I want, and also said I do not have to lower the price of the house if they can't get the amount they need. And if they get financing for a lower amount, something can usually be worked out, e.g. payment of the difference in cash, and/or a slight lowering the purchase price. But if the deal is off because they cannot get financing, I do not get any of the deposit money.
I sent him an email yesterday asking if I get the deposit money if the closing is derailed at the last minute. I guess he will answer tomorrow.
Also, if the deal falls through, I don't know whether to keep the house on the market, or to stay here and ride out the housing slump. I'm afraid I will get, in the short term, much lower offers if these buyers don't close. But my immediate concerns are my September bills, which I have not planned for and will not be able to pay. In retrospect, this was unwise and even stupid - the problem could have easily been prevented had I worked harder last month - but I was assured that the buyers would have no trouble at all with their mortgage.
Try to stay calm and not worry. The great thing is that you have a wonderful buyer with great credit. If for some unforeseen reason the closing falls apart, you will survive. Hey, you've made it till now, and you'll figure out a way to pick up the cards and keep playing, if this hand doesn't turn out the way it's supposed to. Best of luck...saying a prayer that it all works out.
Last edited by tambre; 08-03-2008 at 05:52 AM..
Reason: Oops, sorry, I'm not realtor...maybe this should be a dm.
The mortgage contingency was 30 days, if by that you mean the time the buyers are given to get their mortgage.
The contract was signed July 8, which gives them until August 7 to get their mortrgage. Today is August 3. The bank appraiser came by this past Thursday, July 31, to appraise the house, but since then I have heard nothing.
Apparently, no one seems worried about their getting their mortgage, as they have very high credit scores and high income jobs. My realtor is has urged me to pack and to hire a mover.
I don't want to let go of these buyers because they gave me my best offier by far.
My lawyer said I can give the buyers a grace period if I want, and also said I do not have to lower the price of the house if they can't get the amount they need. And if they get financing for a lower amount, something can usually be worked out, e.g. payment of the difference in cash, and/or a slight lowering the purchase price. But if the deal is off because they cannot get financing, I do not get any of the deposit money.
I sent him an email yesterday asking if I get the deposit money if the closing is derailed at the last minute. I guess he will answer tomorrow.
Also, if the deal falls through, I don't know whether to keep the house on the market, or to stay here and ride out the housing slump. I'm afraid I will get, in the short term, much lower offers if these buyers don't close. But my immediate concerns are my September bills, which I have not planned for and will not be able to pay. In retrospect, this was unwise and even stupid - the problem could have easily been prevented had I worked harder last month - but I was assured that the buyers would have no trouble at all with their mortgage.
I have in my contract that an appraisel and a home inspection has to be done within 10 business days after signing the contract, and after 14 days the contract isn't contingnent on these 2 things....this because of past experiences and delayed closings, and my listing agent not checking if it was done until a day before closing when the package wasn't arrived at the title company. I still had to call my realtor over and over to have them check on these things, because I wanted to close and not have them walk away....
Good Luck and call your realtor tomorrow or today and make sure the appraisel came back okay.
The mortgage contingency was 30 days, if by that you mean the time the buyers are given to get their mortgage.
The contract was signed July 8, which gives them until August 7 to get their mortrgage. Today is August 3. The bank appraiser came by this past Thursday, July 31, to appraise the house, but since then I have heard nothing.
I am a little surprised that it took this long to get an appraisal. Maybe the buyers were shopping loans. At this point, it does not matter.
In 4 days you will know where you stand and if there are any contingencies associated with the mortgage commitment. ( This is where dependencies on the sale of an existing home or demonstration of the financial ability to pay the out of pocket closing costs, sometimes sneaks in and serves as a big ole red flag for potential trouble ahead).
I don't know the protocol in your area in terms of who takes the lead, your attorney or your listing agent. Regardless, one of them should be on top of the matter. If the buyers are unable to produce a true mortgage commitment by the due date, you have a choice to give them more time or cancel the contract and return their earnest monies. And so, it all depend on the details.
I spoke to my realtor today. She chided me for worrying.
She said the buyer is excited and told her that all is going well. When my realtor called her again, the buyer confirmed the planned September 1 closing date, and, according to my realtor, seemed a little anxious that she had called. My realtor also told me that these buyers call her frequently and that she doesn't call them.
So everything looks like it will be fine. I also crunched some numbers. If, for some reason, the sale doesn't happen, I will increase my hours at one of my jobs and I should make enough to get by in September. In October, I'll do even better. But I think, and hope, that all this is moot, as it looks like I'll be in my new place in early September.
Now, I need to somehow coordinate the movers, the closing and my own 5-hour trip to Vermont (with 4 cats). I am going to ask if I can sleep in the house the evening of closing, so I can be rested before I make the long drive.
Also, I do not want to travel with such a big check; I want to deposit it in Brooklyn (in several accounts so I can keep below $100K in each - a happy problem). I need to wire money to my new checking account in Vermont. Once I'm in Vermont, I'll open several more accounts there and get rid of my New York accounts.
How is this generally done when one sells a house in one state and moves to another? My New York bank does not operate in Vermont. Should I leave some money in my NY account(s) anyway, even if only to provide evidence of a long-term bank account?
Thank you all for all your help and encouragement. I'm so glad I have this forum as a resource!
Last edited by arel; 08-03-2008 at 02:29 PM..
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I'm so glad I have this forum as a resource!
