delayed closing - Posted by karen

Posted by Lori Samson on July 10, 2001 at 22:14:31:

I would move on if you can. I don’t know what your state requirements are but can SOMEONE to find out if you can get this moving or on to someone else! Call an agent that’s local to you and see what they recommend.

I had someone tie up one of mine for over four months and backed out on the day her loan was to go to underwriting. I was ticked! It does happen.


delayed closing - Posted by karen

Posted by karen on July 10, 2001 at 11:32:55:

My house in Calif. is in escrow. The contract stated escrow to close on or before 30 days after acceptance. That would have been June 29th. Is held up for approval of funds from buyers IRA. Buyer originally had an approval letter from a conventional lender to finance the whole loan amount. It appears buyers has drop this lender (not sure why) and is in the process of getting approval to use IRA funds for this deal. As a result we have gone beyond the 30 days and escrow has no idea when they will get approval.
What is my recourse, can I cancel this contract since buyers are in default? This is costing me lots of money now that the property is vacant.
From the beginning, buyers knew this needed to be a fast ecrow and never mention this additional financing requirement.

Re: delayed closing - Posted by Sandy

Posted by Sandy on July 10, 2001 at 16:42:49:

Is it possible the buyer didn’t drop the lender, but was actually denied a loan? If that is the case, you can get out of the deal depending on your contract. They get their d/p back and you go on your way. Your contract should also state what happens if the buyers hold up the deal for an unreasonable amount of time (another 45 days, maybe). You might be able to keep all or part of their d/p for restitution.


Re: delayed closing - Posted by Charles K. Clarkson (TX)

Posted by Charles K. Clarkson (TX) on July 10, 2001 at 14:00:09:

You need to get more info about that IRA. Is it really an IRA or is it a 401K or some kind of pension plan?

If it's an IRA, the funds are controlled by the fund administrator. In a self-directed IRA, The buyer would be in control of the adminstrator. It sounds like the buyer is not in control.
I am not familiar with CA laws, but you need to apply pressure on the administrator. Talk directly to  them and tell them the truth: I have other offers and the bills are stacking up.
I once built a home and the contractor wrote a clause in the contract. If I delayed the closing it would cost $100 a day. I had problems with getting a loan from a retirement plan. I felt the same urgency you are feeling now and made sure my companies' administrators felt it too.

I realize you can't put a clause like this in now, but you should be calling the buyer twice a day to be certain they feel the same urgency you do. When you find out who the administrator is bother the crap out them too.

Good Luck,
Charles K. Clarkson
Clarkson Energy Homes, Inc.

Re: In Texas - Posted by Lori Samson

Posted by Lori Samson on July 10, 2001 at 12:31:56:

We (Texas)have an automatic 10 days that is given if the buyer is trying to close and has went on beyond the deadline. That’s why when I am trying to close I like to go ahead and do a lease option and if they go beyond a certain amount of days they have to start paying rent. I don’t think you can do anything except communicate with the buyers and tell them the reasonable thing to do at this point is to put down more earnest money so that you will give them more time. Talk to them like friends and they will likely respond well. Charge in there with threats of killing the deal and they will likely protect themselves in a like manner.



Re: In Texas - Posted by karen

Posted by karen on July 10, 2001 at 13:19:32:

just curious… how does getting more earnest money help me now! I am in need of the proceeds now! Everyday costs me more money…mortgage…taxes…insurance. Not to mention I have two back-up offers. Thanks