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Our MB is a stick in the mud. He screwed up big time with our file. So here we are a week from close and he is in a bind waiting on Rapid Rescore (day 4 of waiting to hear back from them on a credit score correction). We cant close in time now and have asked our sellers for an extension but they are getting antsy. Can they pull out of the deal? So pissed off at our broker right now.
Our MB is a stick in the mud. He screwed up big time with our file. So here we are a week from close and he is in a bind waiting on Rapid Rescore (day 4 of waiting to hear back from them on a credit score correction). We cant close in time now and have asked our sellers for an extension but they are getting antsy. Can they pull out of the deal? So pissed off at our broker right now.
If you can't close on time, the seller isn't pulling out of the deal. Does it make sense for them to allow an extension? This is where your's and the seller's agents come in play (try to get everyone's play nice) so they can be paid.
I agree with the above. There is no backing out on the seller's part if you're defaulting the contract. That's you defaulting. The seller could extend if they want. If it's more advantageous to them, they won't extend and they'll wait for the next buyer. Many properties have back-up contracts in place. If you're having a credit issue now, the sellers might be concerned that you'll continue to have credit issues, and they might want to go more for a better qualified buyer.
A contract is a contract, and both parties are only obligated to perform to what was set forth. If either party can't perform by the contract dates, that's a default, nothing more.
Ahh I got it. Great...makes me even more ticked off at our broker. He waited too long to address an issue and, well, here we are, at his mercy while he tries to fix stuff with his lender last minute. He dropped the ball and we may lose the house because of him. What can we do?
He dropped the ball and we may lose the house because of him. What can we do?
You can get a new approval letter from your lender outlining the issues in the loan and this, that, and the other will happen and you're conditionally approved based on this. You can then plead with the sellers to please please please give you 1 more week (or 2 or whatever the lender needs). You can also offer up more earnest money to show you're serious, and remind them that your financing contingencies have expired and the additional earnest money would be obtained by the sellers if you still failed to perform by the new deadline.
You have to offer something up of value to show the other party you're serious. Just asking for an extension doesn't usually go over well. You have to show proof you can perform.
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You have to offer something up of value to show the other party you're serious. Just asking for an extension doesn't usually go over well. You have to show proof you can perform.
Really? Even if its a week? We put down a healthy chunk of earnest money already.
We gave the seller a heads up that we might need an extension. Tomorrow is day 5 of the 3-5 window CredCo gave to fix the problem so we need to hear back from them...the question then becomes can our broker bust it out Thursday, Friday and close Monday? His underwriter is not in house so that will add time. But if we can do it without an extension to the seller that would be nice.
Otherwise our sellers have asked for a timeline of when he is going to get this done, which is completely fair. I wish our broker would be a little more honest and forthcoming about all this. He just keeps saying "tomorrow is another day" or "fingers crossed" and "we are in the ballpark". What also pisses me off is he sends me emails daily talking about how our rate is dropping due to the market. Doesnt really matter considering he hasnt got a loan for us.
Your Mortgage Broker probably has no idea since he or she is only the middle person...
Several times I had to quickly act to save deals because the financing fell through days before closing... once it was because the Lender said 4 days before closing they did not realize the home was on 6 acres and their limit is 5... how idiotic when they had the appraisal and listing for nearly a month.
In that case I pulled in a lot of favors and got a 30 day bridge loan and refied my home to pay everyone back...
Another case was a home that was inherited with deferred maintenance... there was only a single heir that lived clear across the country.... he realized the place had some problems and I put more down and he carried for 3 years and was so happily extended it to 10...
What kind of numbers are you talking about... are their back up offers ready to jump in and are they cash and non-contingent...
This is where your relationship with the seller comes in to play...
If the property is priced right... what about family, friends, in-laws, out-laws? Even a hard money lender???
My brother the broker helped a co-worker in a similar situation... he told the sellers he would personally give the buyers a bridge loan if their pending home sale was delayed... turns out it was by about a week...
All the sellers wanted to know is that the sale was going to be completed and they had a little wiggle room on the home they were buying so it all worked out...
Last edited by Ultrarunner; 05-28-2013 at 11:27 PM..
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