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State: NC
We are buying a resale home and had a due diligence date of 19Dec and closing for end of DEC. Our original rate lock was through Christmas. Those date couldn't be met (reasons below). Sellers agreed to extend the due diligence to early Jan and closing to mid Jan. This however is costing me a rate lock extension fee of about 900 bucks.
The sellers doesn't want to pay for this and say delays were out if their control . Question: What options/talking points does my buyer agent have to convince them to pay?
Reason for delay:
The seller (debtor) was in chapter 13 bankruptcy, the home is not bank owned and not a short sale. However, the seller had to apply for a 'Motion to approve sale free & clear of liens' in his bankruptcy court. To apply for this they need a "preliminary HUD-1" prepared by our (buyer) closing attorney's office. The motion itself (per them) could take about 2 weeks to be approved.
Now in order to create this "preliminary HUD-1", my closing attorney office had asked the seller's mortgage bank for a "pay off" statement. For some odd reason the sellers bank took 10 business days to provide this (apparently due to sellers chapter 13, they were very cautions etc..). Normally, that shouldn't have take more than 2 to 3 days per my closing attorney.
This in-turn delayed everything & the seller's BK attorney filed the motion only Dec 17th (I have seen the notice & the motion that was filed). Approval from the court is not expected till around Jan 8th. (I am still with-in the safety of my due diligence period till Jan 7 and plan to keep asking for due diligence extension till I see the approval).
Right that's one option.
How about this as another talking point: 'the motion to sell' the seller has filed via his BK attorney in court seeking approval has cost him about $500. Now, the motion references the buyers by name and includes a copy of our contract. So our thought is, he would incur these costs again to any other buyer.
Another question I had: Can the due diligence end date coincide with closing date or even a day beyond closing date? That's something I am inclined to ask for in this case.
Right that's one option.
How about this as another talking point: 'the motion to sell' the seller has filed via his BK attorney in court seeking approval has cost him about $500. Now, the motion references the buyers by name and includes a copy of our contract. So our thought is, he would incur these costs again to any other buyer.
Another question I had: Can the due diligence end date coincide with closing date or even a day beyond closing date? That's something I am inclined to ask for in this case.
Trust your agent, or get legal counsel...
Your ongoing questions here indicate that you have no faith in your agent at all, and are left to your own devices. "Attorney Time."
I am working with who I need to if you read my post. The forum is for questions/suggestions/opinions/bouncing ideas. Your impatience suggest you shouldn't be participating here so don't bother with my post!. Don't waste your/my time with generic comments
Rates haven't changed much in the past couple of weeks, so why if your lender not able to relock at the same rate? Costs usually mean rates went up and you're paying to be at a lower rate. And next time, you shouldn't do a 30 day lock when you know you're in a situation where third parties are in control of the time frame to close. That was not smart for your lender to do if you disclosed to them ahead of time the situation. If you didn't, then it's on you for agreeing to the lock in a short period.
I agree that there is no obligation on the sellers. And if they have to pay $500 again, that's still less than your $900.
Rates have gone up since thanks giving. Yeah the lender was aware so was my agent... they went by the time frame sellers indicated. oh well. thx. At this point I can't rely on "trust", so have to take charge and delve into details or pull the plug before DD ends
I am working with who I need to if you read my post. The forum is for questions/suggestions/opinions/bouncing ideas. Your impatience suggest you shouldn't be participating here so don't bother with my post!. Don't waste your/my time with generic comments
"attorney time" is probably the best answer you will get. The only impatience I see is from you.
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