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We sold a home with little to no "profit" in the sale price. The buyers had been pre approved for a mortgage with a closing date in early January. In January mortgage requirements changed and the buyers had to jump through additional hoops to get a commitment and still do not have one.
This delay has added costs/fees which has now eaten up any extra funds that were to pay realtor commissions, a lien and lawyers.
I have no money/income to bring to the closing, going through a nasty divorce.
We entered into contract in November 2013 officially "under contract" in December 2013. We had no choice but to extend the time for the buyers mortgage commitment in January 2014 which we extended to until 2/4/2014, they still have not received the commitment. The house was winterized and now the mortgage company wants the heating/water tested which means today at the buyers expense the house will be dewinterized, water tested and re winterized.
If you have no money to bring to closing to pay everyone and the buyer isn't going to cover the fees etc, and you still need to sell it, it becomes either a short sale or can become a deed in lieu, a foreclosure and you give the house to the lender. If the fees are small and you don't want it to affect your credit, you might need to get a personal loan to cover the differences.
You need to make it clear to the buyers that you are no longer able to convey a marketable title to the property. You can see if they want to adjust the price to come up to cover the additional fees you have accumulated or you can put it back on the market as a short sale. Talk to your agent about it.
You need to sit down with your agent & go over your net immediately. You should also ask what is going on with the delay, was this a 0 down usda loan? That would make sense, otherwise it seems you might have some shaky buyers and I would want to know where they are at, and if they met any other contingency they may have had such as filling out a loan app on time. Your agent should speak with the buyers lender directly and let you know what's going on, pre-approvals can be worth less than the ink & paper they were printed on unfortunately.
Thanks all.............the problem grows. We received payoffs from the bank which includes a 145.00 per diem charge which has added 14G to the amount I owe. The buyers delay (we were supposed to close in January) has added over half that fee. I just want to walk and do a deed in lieu at this point because I can't see taking on 20G (2nd loan added fees included) for buyers that created half that debt or classified income.
If you are at 14G, 100 days past due? Is this showing up on your credit report? Keep in mind a shortsale is different than a deed in lieu and are view differently for future potential loans.
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Correction
