topic Re: Help! Advice on house purchase closing in Community Chat

Help! Advice on house purchase closing

sweetkelly — Sat, 29 Aug 2015 04:48:26 GMT

My husband and I are moving. We made an offer on a new home, paid the earnest money, and planned to close in August. Then, in late July, my husband lost his job, many in his company did due to cutbacks.

He has a new job offer, but the tentative closing date, has passed, due to his unemployment. Our contract is good, however, until August 31, and we plan to close ASAP starting the 31st of august.

The sellers had made plans to travel after their house sold, putting down deposits, etc on places the would stay. They chose to stay in their home without furniture, etc, until the house was officially closed. When we were unable to close in mid August, they were angry. When our realtor asked for an extension, since my hubby lost his job, they said they would not unless we paid ALL of their travel deposits, and other expenses they have had since the closing was delayed. Mind you, the contract is not over yet.

We are crushed that people would behave this way. They CHOSE to make all of their plans and deposits before the house actually sold. They also refused to leave the house before closing was done. We are closing from our home state and they could have certainly went on their trip as planned, but will only close before leaving town. My hubby and I do not feel responsible for their refusal to go on vacation and we also don't accept blame for them making non refundable deposits before the sale was completed. your thoughts?

Re: Help! Advice on house purchase closing

panda1234 — Sat, 29 Aug 2015 05:32:07 GMT

This is a case of spending money you don't have. This is not your fault whatsoever. What does your realtor say?

Re: Help! Advice on house purchase closing

reiki604 — Sat, 29 Aug 2015 06:01:31 GMT

They are only expecting you to live up to the terms of your contract. If you want to renegotiate the contract by extending it, then have every right to ask for something in exchange. Just as it is not your fault or responsibility that they made plans, neither it it their fault or responsibility that your plans changed. (I am sorry your husband lost his job). You have a contract and business is business. It would be nice if they were sympathetic but again there is nothing that says they have to be.

Re: Help! Advice on house purchase closing

Carmie — Sat, 29 Aug 2015 06:05:01 GMT

When you make an offer on a house and it is accepted, both the buyer and the seller enter into a binding agreement. You are both bound to what is in writing on the contract from the moment is it signed by both parties.

If the contract states that you must close by Aug 31 even if you planned to close earlier, then the contract is valid until that date. if the settlement is after Aug 31, you would need an extension. if you fail to get one, the contract is over. I would hope that the contract is contingent on you being able to secure financing.

You should NOT pay for any of this couples travel expensives. Unless the contract you signed states you would.

Please be aware that your realtor is working for the seller and not you unless you are paying this person a fee. The realtor is bound by law to be on the sellers side.

if you run into any problems, I suggest that you hire a real estate attorney to look after your interests. I don't feel that the sellers or the realtor want you to walk away from the sale. it is in both of their interests that you purchase the home.

I am a licensed Realtor in the state of PA.

Re: Help! Advice on house purchase closing

docsgirl — Sat, 29 Aug 2015 09:54:24 GMT

Do you want this house and can you afford it on your husband's new salary? If you have doubts, you can always walk away. You'll lose your earnest money but you won't be stuck with something you really don't love and can't afford. I purchased a condo and all through the entire process I had a gut feeling this was not right for me. There were many times I almost walked away. At the closing, I got up to walk out because I knew I made the wrong decision but I let my real estate agent talk me into it. While it's a lovely community, I got ripped off on the price as it was not in the best condition for the price I paid. For now I'm here but not sure if I'm going to stay.

Nothing is written in stone until the ink is dry at closing. Up until the time you sign, you can walk away. I wish you luck and make sure you do what is right for you. docsgirl

Re: Help! Advice on house purchase closing

10sluvr — Sat, 29 Aug 2015 12:10:59 GMT

i don't think you owe them anything, but if you offered $500.00 or something, for their "inconvience" would that help smooth things over? they are just giving you a guilt trip and anything extra isn't in the written contract. is the realtor yours or theirs?

Re: Help! Advice on house purchase closing

Cookie2025 — Sat, 29 Aug 2015 12:18:36 GMT

@sweetkelly wrote:
My husband and I are moving. We made an offer on a new home, paid the earnest money, and planned to close in August. Then, in late July, my husband lost his job, many in his company did due to cutbacks.

He has a new job offer, but the tentative closing date, has passed, due to his unemployment. Our contract is good, however, until August 31, and we plan to close ASAP starting the 31st of august.

The sellers had made plans to travel after their house sold, putting down deposits, etc on places the would stay. They chose to stay in their home without furniture, etc, until the house was officially closed. When we were unable to close in mid August, they were angry. When our realtor asked for an extension, since my hubby lost his job, they said they would not unless we paid ALL of their travel deposits, and other expenses they have had since the closing was delayed. Mind you, the contract is not over yet.

We are crushed that people would behave this way. They CHOSE to make all of their plans and deposits before the house actually sold. They also refused to leave the house before closing was done. We are closing from our home state and they could have certainly went on their trip as planned, but will only close before leaving town. My hubby and I do not feel responsible for their refusal to go on vacation and we also don't accept blame for them making non refundable deposits before the sale was completed. your thoughts?

If I where the owners I would go on vacation - if they do not enjoy their vacation as planned that is their problem. I cannot believe these people would make plans without some kind of money on hand. Relying on the sale of their house was a chance they took. I certainly would not allow you or anyone else to move into the house until closing.

You have 2 days before the contract ending date - good luck. I suppose your earnest money is gone if you do not close - but remember - when one door closes a new one opens.

Prayers for you and your Family for a positive outcome.

Re: Help! Advice on house purchase closing

Say Nay — Sat, 29 Aug 2015 12:47:25 GMT

@sweetkelly wrote:
My husband and I are moving. We made an offer on a new home, paid the earnest money, and planned to close in August. Then, in late July, my husband lost his job, many in his company did due to cutbacks.

He has a new job offer, but the tentative closing date, has passed, due to his unemployment. Our contract is good, however, until August 31, and we plan to close ASAP starting the 31st of august.

I'm confused. What do you mean by tentative closing date and that has passed? Did you miss the close of escrow date and are you in an extended grace period? And will the loss of a job impact your ability to get your loan (if you need one)? In my experience you need to be in your job a certain number of months before a financial institution will approve a loan.

Re: Help! Advice on house purchase closing

151949 — Sat, 29 Aug 2015 12:38:21 GMT

This is business. you entered into a contract that you were unable to honor and there are financial repurcussions for those on the other side of the contract. If you still want the house, you will have to negiotate with them, and this is their demand. If they weren't holding this house off the market it would probably have sold to someone else and they would have their money.

When we entered into a contract to sell our house someone told us that the buyers had backed out of previous contracts so we asked the realtor to continue to show the house just in case and we did find a couple who were interested in case they did back out.

Re: Help! Advice on house purchase closing

Allegheny — Sat, 29 Aug 2015 13:33:43 GMT

I think they are provoked because things didn't go as they planned and are taking it out on you and your husband. I am not sure what they are asking of you is legal unless there were contingencies written into the contract.

My SIL and her husband recently sold their home and purchased another. The purchasers changed the closing date twice. My SIL & BIL were more concerned that the sale was going to fall through and they would have to relist the house.

Re: Help! Advice on house purchase closing

Cats3000 — Sat, 29 Aug 2015 13:51:59 GMT

My thoughts? You should have had a lawyer to represent your interests at the closing. A realtor is NOT a lawyer. Before you talk about accepting blame and the sellers' actions, you might want to hire a lawyer NOW and see what he/she can do to extract you from this problem.

Re: Help! Advice on house purchase closing

Cats3000 — Sat, 29 Aug 2015 13:55:27 GMT

You may be a licensed realtor, but you're not a lawyer. Your advice to the OP to hire a lawyer is a good one. But they ought to do it NOW because they've already "run into problems". Point is, they should have hired a lawyer to represent their interests at the start of the process rather then now when there are problems.

Re: Help! Advice on house purchase closing

missy1 — Sat, 29 Aug 2015 15:50:38 GMT

I am surprised the lender would continue the loan, when your dh lost his job.

Re: Help! Advice on house purchase closing

HappyDaze — Sat, 29 Aug 2015 16:16:47 GMT

@sweetkelly wrote:
My husband and I are moving. We made an offer on a new home, paid the earnest money, and planned to close in August. Then, in late July, my husband lost his job, many in his company did due to cutbacks.

He has a new job offer, but the tentative closing date, has passed, due to his unemployment. Our contract is good, however, until August 31, and we plan to close ASAP starting the 31st of august.

The sellers had made plans to travel after their house sold, putting down deposits, etc on places the would stay. They chose to stay in their home without furniture, etc, until the house was officially closed. When we were unable to close in mid August, they were angry. When our realtor asked for an extension, since my hubby lost his job, they said they would not unless we paid ALL of their travel deposits, and other expenses they have had since the closing was delayed. Mind you, the contract is not over yet.

We are crushed that people would behave this way. They CHOSE to make all of their plans and deposits before the house actually sold. They also refused to leave the house before closing was done. We are closing from our home state and they could have certainly went on their trip as planned, but will only close before leaving town. My hubby and I do not feel responsible for their refusal to go on vacation and we also don't accept blame for them making non refundable deposits before the sale was completed. your thoughts?

Well, it IS a contract that you agreed to and it is also not their fault your husband lost his job (sorry about that, btw!). The contract states there are certain conditions to be met and you agreed to those conditions. It isn't about how people "behave"- it is a business arrangement, not a friendly handshake amongst friends or relatives.I would be upset if I was the seller as well, as you have no idea the financial burden they may be under paying for possibly two home, etc.

And I don't think they have "spent money they don't even have yet" like some other person posted- that is a BIG assumption- they are simply saying hey you agreed to a closing date, didn't abide by it, we made plans to travel after closing and since you are the reason for the delay now, you can pay all the costs for the things that now affect our plans. They didn't say they couldn't afford to pay for them, they just don't feel they should have to pay for all that since it was you who delayed the closing. I'd feel the same way and probably ask for the same, or at least some compensation. Again this is business.

Regarding your statement, ".. we also don't accept blame for them making non refundable deposits before the sale was completed. your thoughts? you made non-refundable deposits for the home and agreed to cose the home by a certain date so, technically, they could take that money and run since, according to you, the closing date has passed.But they didn't and apparently are agreeing to give you until the 31st but you may well lose your deposit too if you don't abide by your end of the deal. So if this is true (your post is a little confusing), then I think they are being kind in giving you a bit more time before saying forget it and keeping your deposit and the house.

Your post is a little confusing because I don't understand the fact that the closing date has passed but "contract is good until August 31" so did they agree to an extension or??

Re: Help! Advice on house purchase closing

151949 — Sat, 29 Aug 2015 16:47:28 GMT

happy daze - i took it mean the buyers (the OP) is unable to close by the 31st when this contract expires and so they have to negiotiate a new contract if they still intend to buy this house. If I were the sellers, considering what has happened thus far, I would put a penalty into the new contract in case they can't close again, as lenders may be antsy with a borrower having a brand new job.

Re: Help! Advice on house purchase closing

luvmyteddy4 — Sat, 29 Aug 2015 16:55:36 GMT

a mortgage co can look at the new job as stable as long as it is in the same line of work as the previous job.

used to work at Re/Max as a bookkeeper

Re: Help! Advice on house purchase closing

151949 — Sat, 29 Aug 2015 16:56:42 GMT

@Allegheny wrote:
I think they are provoked because things didn't go as they planned and are taking it out on you and your husband. I am not sure what they are asking of you is legal unless there were contingencies written into the contract.

My SIL and her husband recently sold their home and purchased another. The purchasers changed the closing date twice. My SIL & BIL were more concerned that the sale was going to fall through and they would have to relist the house.

You are taking this that those who are at fault in this situation are the sellers. I do not see it that way. Those who are at fault in this contract are the buyers who are financially unable to close on the house. This default is costing the sellers considerable amount of money, so why wouldn't they want to recoup it from those who defaulted on them?

Re: Help! Advice on house purchase closing

151949 — Sat, 29 Aug 2015 17:00:46 GMT

A question for those who are realtors ... when a home buyer enters into a contract and puts down earnest money , if they default and lose that earnest money, who gets it?

And , in this case, where the buyers still want the house but were unable to close within the time the contract was in place - would that mean the earnest money is forfeited?

Re: Help! Advice on house purchase closing

HappyDaze — Sat, 29 Aug 2015 17:06:39 GMT

@151949 wrote:
happy daze - i took it mean the buyers (the OP) is unable to close by the 31st when this contract expires and so they have to negiotiate a new contract if they still intend to buy this house. If I were the sellers, considering what has happened thus far, I would put a penalty into the new contract in case they can't close again, as lenders may be antsy with a borrower having a brand new job.

yes that is how I took it to mean as well. My confusion lies in that the OP said that the closing date is past but the contract ends on the 31st. I've bought several houses and the closing date is basically the extent of the contract unless both parties agree to an extension.

Re: Help! Advice on house purchase closing

151949 — Sat, 29 Aug 2015 18:05:32 GMT

BTW - the seller is not who gets forfeited earnest money. The person who told us about our buyers backing out of past contracts was one of their victims and she said they didn't get one cent of the earnest money that was forfeited.