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Old 02-27-2009, 06:06 AM
 
7 posts, read 24,904 times
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Hi everyone, my husband and I are currently in attorney review for a home, the home has been taken off the market also...so we're not worried about being outbid. Our situation is that the buyer put a stipulation into the contract to say that we can't close until she finds a home...we've already gotten a mortgage committment for 120 days = this was at the sellers request to get the committment, just wondering what alternatives there are for our situation?

We're supposed to close on 5/30, we're already at the max of our 120 days...so she has 3 months, otherwise the deal won't go through...can someone offer tips or advice for this?

thanks.
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Old 02-27-2009, 06:14 AM
 
Location: New Milford, NJ
1,452 posts, read 3,004,740 times
Reputation: 1010
I think you were crazy for entering into such a contract...what if she doesn't find a home she likes for a year???!!! You're gonna have to start over and lock in a new rate but that might be better for you, maybe the rates will be even lower to encourage people to buy homes in a bad market, after all there is a glut of homes now, with all the foreclosures..
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Old 02-27-2009, 06:15 AM
 
Location: NJ
386 posts, read 790,044 times
Reputation: 187
Quote:
Originally Posted by brooklyn1210 View Post
Hi everyone, my husband and I are currently in attorney review for a home, the home has been taken off the market also...so we're not worried about being outbid. Our situation is that the buyer put a stipulation into the contract to say that we can't close until she finds a home...we've already gotten a mortgage committment for 120 days = this was at the sellers request to get the committment, just wondering what alternatives there are for our situation?

We're supposed to close on 5/30, we're already at the max of our 120 days...so she has 3 months, otherwise the deal won't go through...can someone offer tips or advice for this?

thanks.



At this point it would be best to talk with the seller and see if they can go into a temp. rental and move their stuff into storage sooner rather than later.


Best of luck.
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Old 02-27-2009, 07:37 AM
 
744 posts, read 1,316,451 times
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That's a great deal for the seller in a declining market. Lock in the price now and then wait a few months for prices to decline a bit before buying themselves. Of course waiting too long might cause the buyer to claim the bank is nor refusing their loan.

Seriously how can you not find a house to buy in this market?

I'm assuming you meant the seller put the clause in the contract, since the buyer has already found a home (they are the buyer after all).
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Old 02-27-2009, 07:57 AM
 
1,552 posts, read 4,372,193 times
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Quote:
Originally Posted by brooklyn1210 View Post
Hi everyone, my husband and I are currently in attorney review for a home, the home has been taken off the market also...so we're not worried about being outbid.
Not to mention, the housing market in NJ is collapsing, so there's little sense in worrying about being "outbid".

Quote:
Our situation is that the buyer put a stipulation into the contract to say that we can't close until she finds a home...we've already gotten a mortgage committment for 120 days = this was at the sellers request to get the committment, just wondering what alternatives there are for our situation?

We're supposed to close on 5/30, we're already at the max of our 120 days...so she has 3 months, otherwise the deal won't go through...can someone offer tips or advice for this?
If you are in attorney review, now is the time for you to stand up for yourself and not accept this contingency. I'm sorry, but there's no reason why the seller cannot move out the house within 120, whether or not she finds a new house.

First of all, there are literally record numbers of houses on the market right now, something like a 17 month inventory, which is at record highs. There are plenty of houses out there for her to choose from. If she the seller is super-picky, that shouldn't be your problem.

Second, even if she can't find a house and move out within 120 days, there are always short term rental options.

Third, lending standards are tightening -- there's no guarantee that you will be able to get a mortgage commitment in 3 months. We are experiencing unprecedented financial catastrophe in this country, and it's impossible to predict what things are going to look like 3 months from now in terms of getting a mortgage.

Frankly, she should consider herself lucky she has you as a buyer, and she should be bending over backward to make sure you can close in 120 days.

I would not allow this contingency into the contract, and now is the time (before attorney review ends) to tell your attorney that this is not acceptable and that the closing must take place within 120 days (or whenever your mortgage commitment ends).

Threaten to walk away from the deal, I'm confident she'll agree to close within your 120 window. If not, there are plenty of other houses out there, and she'll probably be selling for less by the time the next buyer comes along.

Good luck.
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Old 02-27-2009, 08:00 AM
 
Location: NJ
386 posts, read 790,044 times
Reputation: 187
Read through it too quick..thought you were past AR.

What sholden and Lusitan said You have all the leverage in this mkt.
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Old 02-27-2009, 08:15 AM
 
2,312 posts, read 7,071,690 times
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I would try to push and find out where the seller is regarding future housing. To sit around and wait like this is ridiculous. Do you have any out in your contract or will you lose your deposit if you don't sit on your hands for 120 days?
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Old 02-27-2009, 09:33 AM
 
7 posts, read 24,904 times
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for some reason, i'm having issues with the 'quick reply' function so hope this reply goes through...

sholden, yes sorry, i meant to say the seller put the stipulation into the contract...our attorney recommended that we not move forward any further if seller doesn't remove that clause, which my husband and i agree with. i can see that she's nervous about not finding another home but as some of you have suggested, temporary housing is the next best alternative...and you would think 3 months is plenty!! i've been told the seller is looking for homes and has put in bids into a few of them and it fell through, i guess its good to know she's proactive and looking for another home...its hard for me to understand why she wouldn't want to sell otherwise...isn't it harder to sell your home these days then to buy one?

we can still get out of our contract and get our deposit back, we'll just incur the attorney fees...this has been a stressful, frustrating and almost discourgaging experience...thanks to all for your comments, hopefully I'll have a more positive reply in the next few days...
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Old 02-27-2009, 09:37 AM
 
1,552 posts, read 4,372,193 times
Reputation: 507
Quote:
Originally Posted by brooklyn1210 View Post
isn't it harder to sell your home these days then to buy one?
Bingo.

Hopefully, she'll see the error of her ways and agree to drop the clause. But if not, don't worry -- the small amount you've paid in attorney fees will probably be more than made up for in the reduction in house prices that's happening on a weekly basis.

good luck!
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Old 02-27-2009, 09:44 AM
 
Location: New Jersey
2,510 posts, read 3,613,244 times
Reputation: 621
When you make your offer its pretty much standard that your choice for a settlement date is put into that offer.......if they want to sell they have to settle on whats in the agreement ?
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