Stupid seller... amad as hell (incentive, mortgage, mortgage, fees)

[Sprawling_Homeowner]

Scenario:

Purchase all but ready. Contract signed. Loan commitment letter in place. 1/2 of down payment tendered, in escrow. All that is in wait is the closing.

Seller's side asks for a few weeks postponement of closing because of some document they need to get (stock certificate?).

Problem: my mortgage is locked-in and it has been extended FOUR TIMES (the maximum number of extensions the bank will allow) and this will cost me hundreds.

If the closing does not take place sometime next week, the mortgage will expire and I will have to get a mortgage at a much higher rate.

To make matters worse, my lawyer only found out today that the rate had been extended all this time.

Who's at fault here?

Can the closing still happen in time? (My lawyer is mad as hell and is going to pressure the seller's lawyer re: my rate/mortagage)

If the mortgage expires before the closing does take place, can I take any legal action against the seller for delaying the closing?

[Gretchen B]

Originally Posted by Sprawling_Homeowner

Scenario:

Purchase all but ready. Contract signed. Loan commitment letter in place. 1/2 of down payment tendered, in escrow. All that is in wait is the closing.

Seller's side asks for a few weeks postponement of closing because of some document they need to get (stock certificate?).

Problem: my mortgage is locked-in and it has been extended FOUR TIMES (the maximum number of extensions the bank will allow) and this will cost me hundreds.

If the closing does not take place sometime next week, the mortgage will expire and I will have to get a mortgage at a much higher rate.

To make matters worse, my lawyer only found out today that the rate had been extended all this time.

Who's at fault here?

Can the closing still happen in time? (My lawyer is mad as hell and is going to pressure the seller's lawyer re: my rate/mortagage)

If the mortgage expires before the closing does take place, can I take any legal action against the seller for delaying the closing?

Sorry for your delimma. First of all, your attorney is the one who should be able to get this settled for you. In my state (AZ), the close of escrow date is written in stone in the contract and can only be extended with the consent of both parties are willing to extend it. Does your contract not have a closing date in it? Usually what happens if one party needs to extended the contract (and usually it's the buyer because his loan isn't ready), then the other party will expect to be compensated for carrying costs during the extension period. In this case, the seller should be obligated to pay for any additional costs associated with you having to wait on them to close. This normally would be incentive for them to close ASAP.

On the bright side, you may not actually end up with a higher interest rate. Rates have inched downward this past week.

[Northwoods Voyager]

Here in Missouri, we also have closing dates that are firm..only written and signed extensions are ever allowed. Your attorney is the person to
be looking at for legal advice. Good Luck to you.

[TimtheGuy]

Originally Posted by Sprawling_Homeowner

Scenario:

Purchase all but ready. Contract signed. Loan commitment letter in place. 1/2 of down payment tendered, in escrow. All that is in wait is the closing.

Seller's side asks for a few weeks postponement of closing because of some document they need to get (stock certificate?).

Problem: my mortgage is locked-in and it has been extended FOUR TIMES (the maximum number of extensions the bank will allow) and this will cost me hundreds.

If the closing does not take place sometime next week, the mortgage will expire and I will have to get a mortgage at a much higher rate.

To make matters worse, my lawyer only found out today that the rate had been extended all this time.

Who's at fault here?

Can the closing still happen in time? (My lawyer is mad as hell and is going to pressure the seller's lawyer re: my rate/mortagage)

If the mortgage expires before the closing does take place, can I take any legal action against the seller for delaying the closing?

Interest rate pricing has improved. Are you dealing with a broker or a bank? A broker could let you current lock expire and have a couple of options. He could re-lock with a different investor (make sure he passes the better rate on to you) or re-lock with the same investor in the near future and get "worst case pricing" which looks like it would be what you originally locked in at with no extension fees.

If you are with a bank, insist that since rates have improved you want the rate you originally locked at with no extension fees. If they say they can't do it, tell them you know rates have improved and you will have to go to a different lender (like walking out of the car dealership). This should get them to accomadate you.

It might not hurt to go after some seller concessions as well as they are costing you money.

[VaNative]

I thought both parties had to agree on the closing date and/or any extensions. If both weren't in agreement, the closing would be on whatever date the contract stipulated. http://bestsmileys.com/clueless/4.gif (broken link)

I could be wrong but that makes sense to me.