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I put in an offer on a short sale which was accepted by the seller and the bank. I was "pre-approved" by my mortgage broker for a USDA loan. The loan has fallen through regular underwriting, and the mtg. broker is trying to go through another lender. This has not even made it to USDA yet, and it is my understanding that they are taking 10-14 days to process. My closing date is 03-31-10, and the selling agent contacted me to tell me if the closing does not occur on time, they have a cash offer pending behind mine. I have already paid for the appraisal, survey, WDO, home inspection, insurance, and I even had to pay the deposits for all of the utilities, as the seller wouldn't. Not to mention my $1000 earnest money. The bank acceptance letter (CitiMortgage) to the seller states it is ok as long as it closes by 04-23-10. Will I be out of luck if this doesn't close by Wednesday? Any comments will be greatly appreciated!!!
You may be out of luck if the seller wants to present the cash offer to the bank (assuming it meets the price target). They have the right to move on if you can't close on time. The bank can't change the contracted closing date unless both buyer and seller agree. If I were the seller, I'd also be very inclined to go with the cash offer instead of hoping you can still get a loan. You should get your earnest money back if you had a loan contingency that has not expired.
You may be out of luck if the seller wants to present the cash offer to the bank (assuming it meets the price target). They have the right to move on if you can't close on time. The bank can't change the contracted closing date unless both buyer and seller agree. If I were the seller, I'd also be very inclined to go with the cash offer instead of hoping you can still get a loan. You should get your earnest money back if you had a loan contingency that has not expired.
Ditto this. Especially since USDA is running out of money. Honestly, I'd have to advise my client to present the cash offer to the bank and terminate with you.
Thanks for the responses Should I have my agent present an extension and see if the sellers sign? Also, there are 2 individuals who are the homeowners...one in Florida and the other in Texas- could one of them sign the extension, or does it have to be both?
Thanks for the responses Should I have my agent present an extension and see if the sellers sign? Also, there are 2 individuals who are the homeowners...one in Florida and the other in Texas- could one of them sign the extension, or does it have to be both?
Doesn't hurt to try . Yes, both owners will have to sign unless one has give power of attorney to the other. Distance should not be an issue, they can fax or scan/email signatures, or even use electronic signatures if their agent can do that.
Thanks for the responses Should I have my agent present an extension and see if the sellers sign? Also, there are 2 individuals who are the homeowners...one in Florida and the other in Texas- could one of them sign the extension, or does it have to be both?
Gotta agree with rjrcm. You need to try and see what happens. I assume they are living there rent free so a delay probably works in their favor too. If I was your agent that would be the angle I would take. Another month of living rent free.
The owners are builders and the home is unoccupied...Not looking good for me at this point. Seeing a real estate attorney, and praying for the best....Thanks!
I am in the process of buying a short sale house. The seller's lending bank purposed 03/24/2010 as the close date on 03/03/2010 (the date my lawyer received the approval). I only have 3 weeks to do all the things (inspection, title search, apply loan). My lawyer is still waiting for the title search report to be completed. I need to provide one last document to satisfy the conditions on my commitment letter and I can't obtain that document until 04/03/2010. Therefore, my lawyer is working with the seller's lawyer to request an extension (hopefully 30 days).
Referring to your case, after the seller's bank approved the sale, the house you are getting is supposed to be on the Under Contract or Pending status. Is it legal for the agent and the bank to continue to accept offers and market the house even if is Under Contract or Pending?
To my understanding, the seller of the short sale house will receive nothing from the transaction, the seller's lender bank will take all the money. I understand that the seller's lender wants to close the short sale ASAP, but why the seller cares? Since you have done and paid many expense on this transaction, it's just seem redicolus for them not to give you an extension for another 2 - 3 weeks.
I am in the process of buying a short sale house. The seller's lending bank purposed 03/24/2010 as the close date on 03/03/2010 (the date my lawyer received the approval). I only have 3 weeks to do all the things (inspection, title search, apply loan). My lawyer is still waiting for the title search report to be completed. I need to provide one last document to satisfy the conditions on my commitment letter and I can't obtain that document until 04/03/2010. Therefore, my lawyer is working with the seller's lawyer to request an extension (hopefully 30 days).
Referring to your case, after the seller's bank approved the sale, the house you are getting is supposed to be on the Under Contract or Pending status. Is it legal for the agent and the bank to continue to accept offers and market the house even if is Under Contract or Pending?
To my understanding, the seller of the short sale house will receive nothing from the transaction, the seller's lender bank will take all the money. I understand that the seller's lender wants to close the short sale ASAP, but why the seller cares? Since you have done and paid many expense on this transaction, it's just seem redicolus for them not to give you an extension for another 2 - 3 weeks.
Because the buyer's financing failed underwriting. This is not a strong buyer from a real estate standpoint. It is the goal of the seller to get the house closed with a short sale rather than foreclosure. You are right that the seller receives nothing, but they could also lose the cash buyer, and have the OP not get financing. Then they just shot themselves in the foot by granting the extension.
Ok- now the underwriting is approved ?!? and it is going to be submitted in the morning to USDA. I am going to have to still try to get the extension- I am hoping for April 15 to give USDA time to respond... It is my understanding that it takes 7-14 days. It all pretty much lies in the choice of the sellers- to agree to the extension or not... I am seriously just feeling sick about the whole thing...
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Should I have my agent present an extension and see if the sellers sign? Also, there are 2 individuals who are the homeowners...one in Florida and the other in Texas- could one of them sign the extension, or does it have to be both?
. Yes, both owners will have to sign unless one has give power of attorney to the other. Distance should not be an issue, they can fax or scan/email signatures, or even use electronic signatures if their agent can do that.
