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Sorry for the long post, but it's a complicated situation.
My grandparents are in the process of selling their home in NJ and the whole thing has been a nightmare. They accepted an offer from a husband and wife and set a closing date of January 30th, contingent on the buyers being approved for a mortgage.
On Dec. 22nd the were informed that they had been approved on December 11th. On Jan. 4th they were told the buyers insisted on moving the closing date up 2 weeks because the wife had been diagnosed with a high risk pregnancy and was worried about losing her job and thus the mortgage. They said if my grandparents didn't agree they would sue them. My grandparents lawyer advised them to do it to avoid a lawsuit, but my grandparents did not agree (as it takes a signed agreement by both parties to change a closing date as far as I know), specifying that they could not move everything out on such short notice. So the closing stayed at Jan 30th.
Jan. 30th was a saturday, so the buyers wanted it moved up to Jan 29th (their lawyer informed my grandparents lawyer of this on Jan. 26th, by the way) and my grandparents agreed. Many members of my family took off work on the 28th and 29th to help with moving final items out and being there for the closing.
On Jan. 29th, their lawyer again called and said it had to be pushed back to Feb 3rd because their bank was not ready. Annoyed but understanding my grandparents agreed. Feb 3rd roles around, and my grandparents' lawyer comes by and has them sign a document they thought was the closing paperwork (they are 81 yrs old) only to learn it actually was an addendum saying instead of the original two people on the contract getting the loan, the husband and another person had applied for a loan. When questioned about this, the lawyer said the wife had not been approved. My grandparents asked why they hadn't been informed and their lawyer said "why should I tell you? I knew, that's all that mattered." He then told them the closing would agin be moved to Feb 4th.
Here it is Feb. 4th and still no closing. Apparently the buyers lawyer did not call my grandparents lawyer back at any point today. So, my grandparents lawyer said the closing will be tomorrow. At this point we don't think they have a mortgage secured but can't prove that. Is it just me or is this completely ridiculous? We can't take any more days off of work and my grandparents are living in a house with just a mattress! Plus, my grandmother is in a wheelchair!
Shouldn't they have been informed when the original people in the contract applying for the mortgage were turned down? if so they could have pushed back the closing to allow enough time for another application rather than being rushed out for no reason. Isn't it the lawyers duty to inform them of these kinds of things (mortgage not approved)?
My grandparents do not NEED to sell the house (they were going to move in with my mom for convenience) so can they just cancel the deal at this point given that the applicants were denied a mortgage and missed the set closing date?
I appreciate any help you all can offer as I am at my wits end. Thanks!
I do not know what papers were signed, however ther is a mortgage contingency in the PA agreement of sale that states what date they will have mortgage approval. If they did not sign anything extending the approval date then the deal is dead right there, regardless if they signed an extentsion on the closing date. They can try to keep the deposit but both parties have to sign off on the release anf ig the buyers dont it could end up in court.
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