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I was supposed to close on my house today, but the sellers could not make settlement due to repairs not being done.
Backstory: We signed a purchase agreement back in April & the sellers were to replace the septic system and have it certified prior to closing. They took forever to get correspondence back and forth & I found out about two weeks ago that they hadn't even applied for the permit yet, much less had any of the actual work done. They was an issue with the septic design & in the end I worked it out with the septic contractor & agreed to them installing a smaller system in order to get the permit & install rolling. They are going to have to tear down a shed and tear out a concrete walkway, which I'm not thrilled about but I was hoping we could still close in a timely manner.
I am planning to ask the seller to pay for my rate lock extension. Is this common? Fair? It's going to cost me $2200 for the extension, but I've been ready to close for weeks & the cost has been incurred solely as a result of their actions, or non-action as it turns out. As for the give & take of buying the house, I've given quite a bit. I've agreed to the smaller septic system (saving her money), I've not asked them to do anything about the shed or walkway, I've agreed to a longer timeline... Am I being unreasonable? If it were a small rate climb I wouldn't worry too much about it, but I was locked in at 3.25%.
Is the work going to affect the price you agreed to?
No. She had a quote before accepting our offer. We all knew about the septic issue before looking at the house & she had it priced accordingly. If anything, by me accepting to have a smaller system installed, it will cost her less than her original quote.
So why could you not lock in your rate when you signed the contract?
I did lock in my rate. The seller asked for a very short mortgage commitment date, so I locked in my rate, provided the seller with a commitment letter from my lender, jumped through a few hoops for the underwriter & my loan was approved about a month back.
The seller did not make the original settlement date (today actually), due to the late start on the septic system and her not working to resolve permit issues. My rate lock will expire before they can be ready to close with county approval and inspections etc. I've been hit with a $2200 fee to extend my rate lock another 30 days.
I would think the seller is responsible - doesn't mean they won't dig their heels in. If I were your lender, I would draft a letter explaining the situation, and asking for cost participation from the seller, seller's agent, and even your own agent before I hit you up.
Sounds like close to what happened to me. Signed contract April 17th with May 29 close. Seller couldn't get it finished or get Cert. of Occupancy from city. My rate lock was to expire June 3. Extended that out and seller paid for the extension.
Sounds like close to what happened to me. Signed contract April 17th with May 29 close. Seller couldn't get it finished or get Cert. of Occupancy from city. My rate lock was to expire June 3. Extended that out and seller paid for the extension.
If you don't mind me asking, what was the fee for your extension & how long was it extended?
My lawyer has sent the seller's agent a request that it be paid at closing by her. I haven't heard back yet. Dealing with the seller & her agent has been like pulling teeth.
It was extended for another 30 days since my lender (a local bank) didn't trust the seller and contractor to get their *#it together in 15 days. It was something around $1,300 (off the top of my head without going and looking at the documents). My agent was also pulling her hair out dealing with a non-responsive seller's agent.
I was under the impression that a fee like this would be based on a percentage of the loan amount.
Is that not always the case?
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