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Waiting For Closing - How Long is Too Long?

by Janice
(OK)

How long is too long to wait on a closing date? We were more than accommodating when the seller asked for two more weeks than the original date (May 1-2) due to an illness. This would have put our closing at May 15th or so. Then title work and easement paperwork became an issue since the house has never been sold and property is family land. Understood. Also understood that the surveying was delayed because the surveyor was slow.

Finally, things start rolling two months later at the end of June. We start jumping through hoops trying to get it closed. We were striving for June 20 because our file would expire the next day and new stuff would have to be done like credit report and etc. We didn't want that because yes we knew already that we had a mess up on our part. But things happen and we understood the consequences.

However, because of all the delays our interest rate went up and now we are facing putting more money into it because of not only our mistakes but also for the others that have been made on their side. I feel like they have dropped the ball and now they are trying to turn it around on us. They try and tell me otherwise but I'm not buying what they are telling me. We trust no one.

We have been more than patient and cooperative and now the sellers realtor which happens to be her daughter is being quite uncooperative and demanding to say the least. We understand that we are at their mercy and we are willing to be cooperative just to get this all behind us.

We are at the point where we would like to walk away from this deal but so much time, effort and tears have already been put into this deal.

We would have never moved in before closing is our realtor hadn't pushed for it. We were told that it was okay to move in and that everything is ok. Every week I was told the same thing when I would check in. We love the house but man, we are feeling pretty beat up. We do not see where anyone is at bat for us and it definitely seems like it's gone from a good relationship to a bad one real quick.

Yesterday the seller's realtor states she wants $30 to $35 a day until close and we also find out today that the seller has dropped the insurance so we need to put insurance on this. We didn't know they could do this and I don't trust anyone to ask them if they can do this. Should we do what they ask for or should we not? Can they do this or is there a law that states this?

We are at our wits end and it's not looking very good. What will happen next and will we even close on this deal? What should we do? We feel stuck and need some good advice that will benefit us. We know the seller is sick and that is thrown in our face every time. We are not heartless and we are not trying to take advantage. No one seems to see it the way we do. No one seems to be at bat for us. It is definitely a "sellers market" and if they mean it like that, with the way we have been treated then I would advise other buyers to beware. The nicey nicey is fake! The gloves come off real fast and the only people that are going to get screwed will be the buyer in this case.

=====ANSWERS=====

Hello Janice in Oklahoma,

Thank you so much for visiting my website and telling me your story. You gave me plenty of details so I can make suggestions. As you know, I'm not an interested party in this transaction so my advice is completely non-bias.

You my friend are in a very delicate situation. In fact I'm in shocked your realtor advised you to move into the property before closing. This is a major "no" "no". I'm not sure how long ago you moved in but it sounds like it has been a few months.

That was not good advice. The reason for this is because there are too many variables to buying a house that can go wrong. This is exactly what you are experiencing right now.

I'm only hearing your side of the story, but let me reassure you that I can imagine the confusion and frustration you're going through.

With the sellers realtor being the daughter, you have emotions involved. With the seller being sick, you have major possible delays on the horizon. Hopefully the seller has put the daughter in a "power of attorney" so she can make financial decisions in case something bad happens.

When I was in the mortgage business (not in it anymore, just trying to help people through my website) I had a situation that was a little like yours.

Even though the buyer was not living in the house like you, they really wanted to buy the house but the seller was sick and planning on moving to a warmer climate. Well before everything could be completed, the seller dies and the whole deal falls apart.

Now, as to your situation, you are living in the house, it sounds like you have time, money and efforts made to begin nesting there. But you have not closed for reasons beyond your control. It sounds like you have made your share of errors along the way also.

The fact remains you are living in a house you do not own and it appears to me you're not paying rent either. They are calling for $30 - $35 a day rent until closing and want you to buy homeowners insurance.

Yes your situation is going from bad to worse.

They have a right to ask for rent. You're living in their house. I'm not a lawyer, but I do not think they have a right to insist on you buying homeowners insurance on a house you do not own.

At best I would think you should negotiate some kind of a short term lease (3-6 months)and perhaps buy renters insurance for your contents. You should not have to insure a structure you do not own. Besides, I'm not certain an insurance company would even sell you a policy like that without you being on the deed.

The best advice I can give you is to seek out an attorney. I know that is not what you want to hear but you may be in for a very unpleasant experience and likely need some protection.

I don't know if you have put any money into this deal, but if you have not, you may even want to consider moving out if you do not want to hire a lawyer.

It would be better to just lick your wounds and move on than it end up in some kind of a long drawn out legal battle. Both sides have made mistakes here, in fact I would think there may be some kind of a legal ramification on the part of the realtors and brokers involved. You have been misguided.

What has happened is never recommended and someone besides you needs to be held accountable. You are an innocent party here because both real estate companies know what they are doing and you just followed advice from them.

If you go past 90 days since your mortgage approval, in many cases it requires new credit to be pulled by underwriting. A lot of things can happen in 90 days to a person's credit file. If you had a rate lock, they also expire. In fact it is hard to get a rate lock longer than 30 days.

I don't know if this helps you or not. But I strongly advise you to seek protection. Either legally or by moving out.

I wish you the best. Please like, share or comment on our website in your favorite social media places.

Kind Regards,

Jeff Ragan






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Thanks
by: Janice

Thank you for the advise. It's very much appreciated. We will definitely be looking into this further. Protecting ourselves is what I'm all about.

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