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So, OP, you no longer want to sell?
Or, you have another buyer and maybe a sweeter deal? A buyer who will close quicker and help you avoid making another payment?
Nothing you relate would make a motivated seller kick a deal away. It would seem that there is something else going on you haven't related.
Your contract will tell you whether you "have recourse or just have to suck it up."
You need to use your listing agent to determine the likelihood the Buyer will be able to close faster than any other offer could close.
If either the appraisal date or the closing date are to be amended, are you able to gain additional monetary assurance (higher earnest money, any non-refundable deposits, etc) that by accommodating this Buyer your risk is abated as much as possible?
Since your location says Phoenix and you mention Maine, can we assume you're selling remotely, and how long has the house been for sale?
Something is off. They thought you could promise they would never get mold in their home they maintained.
Find out why they switched lenders. Could be they couldn't get a loan. Then you wouldn't want to wait till they hunted and pecked through more lenders hoping finally some other lender will take care of their needs in the mythical way they see fit.
They just may not be reasonable.
His employer offers a credit union. That is my understanding of why they switched. Perhaps the credit union is offering a better rate.
Quote:
Originally Posted by BigRedBeth
Did you not sign an extension to the contract? I often have buyers switch lenders but there has to be an addendum if contract terms are not being met.
No extension. We were not even notified that this was an issue until our realtor called theirs to check on the status of the appraisal.
Quote:
Originally Posted by MikeJaquish
So, OP, you no longer want to sell?
Or, you have another buyer and maybe a sweeter deal? A buyer who will close quicker and help you avoid making another payment?
Nothing you relate would make a motivated seller kick a deal away. It would seem that there is something else going on you haven't related.
We do still want to sell. The other buyer doesn't offer a quicker close as they still need to sell their house. We aren't going end the contract at this time, as we don't want to start the process from the beginning with another buyer. We do realize that these buyers are still the quickest sell we have. I'm just so irritated.
Quote:
Originally Posted by BoBromhal
Your contract will tell you whether you "have recourse or just have to suck it up."
You need to use your listing agent to determine the likelihood the Buyer will be able to close faster than any other offer could close.
If either the appraisal date or the closing date are to be amended, are you able to gain additional monetary assurance (higher earnest money, any non-refundable deposits, etc) that by accommodating this Buyer your risk is abated as much as possible?
Since your location says Phoenix and you mention Maine, can we assume you're selling remotely, and how long has the house been for sale?
They are in breach of the contract due to not meeting the appraisal deadline. So I guess I have answered my own question. Cancel the contract, start from the beginning with a new buyer, or deal with the delayed closing.
Yes, we are selling remotely. The house has now been on the market for about 3 months, but been under contract for about a month of that time.
I am mostly just frustrated with these buyers because of the entire situation - if they would have negotiated with us once finding the mold we would have been closed on the house by now, and now they want even more time.
That would be so costly as to negate the savings of a mortgage payment, or two. Better off just to close a month later than pay a real estate attorney.
If one uses a r.e. attorney, best to get one early in the game for a flat fee to review the contract and a certain # of hours for any issues that may come up, review addenda, etc.
That would be so costly as to negate the savings of a mortgage payment, or two. Better off just to close a month later than pay a real estate attorney.
If one uses a r.e. attorney, best to get one early in the game for a flat fee to review the contract and a certain # of hours for any issues that may come up, review addenda, etc.
How do you figure the cost would be a mortgage payment or two? Attorneys charge by the hour. This wouldn't take 10 hours to read the contract and advise. In many states, real estate attorneys charge a flat fee for a house sale/purchase.
It does get frustrating and unfortunately when you accept an offer contingent upon financing you have resigned yourself to go along for the ride subject to the contract terms.
The second home I ever bought was a real bargain... the poor sellers were half way across the country and were in and out of Escrow almost 5 months because the buyer was using a special first time buyer program sponsored by the city... when everything was ready the city ran out of funds... but said they hope to be able in 90 days to proceed...
I offered 25% less than list, all cash and As-Is with a 10-day close... the seller accepted and the buyer dependent on the first time buyer program was furious... even got a lawyer but there wasn't anything they could do.
I fully realize that contracts and customs vary from state to state, but so what if they've missed their appraisal deadline? Isn't the end game the closing date? If they have not yet missed that, then you haven't actually lost any time yet, have you?
I do wish people would be more forthcoming about these types of decisions, we've had a few threads from one buyer who decided to make some changes based on his own life issues, and didn't bother to update seller and is now suffering consequences financially.
I guess I'd ask if they have a full pre-approval from this new lender. If they do, can the new lender meet the previous contract closing deadline? If not, then contract re-negotiations are in order. And the ball is in your court. Demand a new contract with fees for delays.
AZ does not use real estate attorneys. Trust company and Realtors.
AZ may not use an attorney to do the closing, the title co. will do that. Several states work that way. If I were his listing agent, I would suggest he consult an attorney for advice as to what is best for his situation.
The Realtor should suggest that rather than get into a sticky wicket with the seller.
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