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Our contract dated 06/2/08 set an escrow period of 45-60 days because we are getting an FHA loan and needed more than a 30 day escrow to make sure we could finish all the paperwork. The close date would fall between 7/16-7/31 based on that. We have our mortgage commitment (since 7/1) and were all set to close on 7/25, but the sellers have been completely unresponsive to our lawyers repeated requests to confirm the close date. They keep hedging and from what my lawyer can guess (since they won't give her any details) is that they don't have another place lined up and are probably not going to want to close until well into August.
The problem is our mortgage commitment expires on Monday, August 3rd. My husband, my one year old daughter and I have to be out of our apartment on July 31st. We have repeatedly told our the sellers (through our lawyer) that the 31st is the last day we can close. They STILL will not respond to us. We cannot afford to pay for an extension on our mortgage commitment and extend our lease or pay for a hotel room and storage. We also do not feel comfortable renting back to them because they have been so unresponsive we don't know if we'd be able to get them out of the house, but even so that still leaves the trouble and expense of us either paying for another month's rent (will be at a much higher vacancy rate because we have already given notice) or renting a hotel room with our baby.
My question is - if they do not set a close date or set a date after 8/3 and we lose our mortgage what happens? We obviously have a mortgage contingency in our contract. Do we still have to purchase this house? Will we get our deposit back or do we lose that?
If you have a mortgage contingency and you lose your mortgage, you can get out of the deal. The actual date was not set at all? Your lawyer needs to convey to the sellers that if you don't close by X, they will either have to pay for your extension or the deal is null and void because you will lose your mortgage.
Your lawyer should know exactly what YOUR obligations are based on the wording of your contract. Ask him/her.
7/25 was the date set by the loan officer, but the sellers have not confirmed that date or any date.
We told our lawyer that we need them to pay for the extension but she says that we can't ask for that (I don't know why). We have also told her to let them know that if we lose the mortgage we will not be purchasing the house, but they still have not responded.
You probably can't ask for that because even though the loan officer set the date, there was no date mutually agreed upon between you and the seller. Usually there is a lot of lead way when it comes to the closing unless it specificallay says "on or by" X date.
It's possible the sellers want out and they are just going to let your mortgage expire. Pretty crappy that they don't at least communicate with your lawyer.
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