Help! Advice on house purchase closing - Page 4

Carmie · ‎10-25-2010

I see what you are saying and you could be right... The OP was not very clear. I wish she would come back and clarify.

No matter, I still would not pay them for their travel expenses. Most contracts have a contingency that if you can't get your loan approved, the contact is void and you are not not obligated to buy and your deposit must be returned. It's pretty standard.

If the buyers back out, the realtors get zero payment for their efforts ( they work on commission only and get paid after settlement) and the house will have to go back on the market, wait for a new buyer and wait some more for the settlement. this could take months. Sometimes a house under contract that does not get to settlement , scares new buyers away. They think something is wrong with the house. Not always true, but a valid statement.

The ball is in the buyers court.

I have seen very few sellers who received the money held in escrow. Most people are forgiving even if they are legally able to take the money, most don't. I've only seen it happen once when the buyer found another home that they liked better and backed out at the last minute.

Kalli · ‎03-11-2010

We've gone through many real estate closings. If a potential buyer signs a contract and puts money down then reneges, we always allow them to take the money back and we relist. Depending on our interactions with the buyers, we might allow an extension, or we may not. If we get the feeling buyers are playing games, we opt out. Sometimes you just get a feeling about this kind of thing.

Hiring a lawyer is expensive. Realtors are expensive, too. We often sell on our own and buy on our own.

I hope the OP is able to settle on Monday.

sweetkelly · ‎02-15-2011

Hello. OP here. Just to clarify. Contract valid until August 31. The bank was able to get everything ready EARLY, so all parties agreed to earlier closing date. Contract still valid until August 31. Hubby lost job, again with about 75 other people, two weeks before we were to complete early closing. That said, there is a contingency in the contract that it is not valid if we were not able to secure financing. My husband was in the marine corps, active duty, for 28 years, so we have bought and sold our share of homes.

Bank just wants to know he has a job again, as he also has disability and a pension. I have taught for 25 years, and continue to do so I guess that shows we are pretty responsible.

I just just feel that these sellers pulled up their roots a little too fast, stored all their furniture, and made plans to travel, paying advance, non refundable fees assuming that nothing could go wrong. Kinda counting their chickens before they hatched. At this time, my husband and I offered to reimburse half of their money to accept some responsibility. They told their realtor (yes, we have OUR own realtor) we pay their whole loss or they may not extend time for the closing, which means house goes back on the market.

Due due to not being able to secure financing, we get ernest money back. Like I have said, we have moved a lot. We have never not closed as we were supposed to.

please send send your thoughts and prayers our way. Thanks

Kalli · ‎03-11-2010

sweetkelly, maybe the sellers aren't very experienced and therefore didn't count on anything delaying this transaction. Sounds like they're disgruntled but I guess that's understandable just as your situation is understandable. Life can throw you curve balls, it's just that way.

Anyway, I hope you are able to finalize. We sold a house last December and had to change the financing situation a little to accomodate the buyers. Some sellers will bend, some will not. Nature of the game I suppose.

Good Luck!

NYC Susan · ‎03-13-2010

@151949 wrote:
@Carmie wrote:
Maybe I am not on the right track, but I took the OP's statements to read that her contract said that the closing must be done by Aug 31.

She had a closing date that was sooner, which is OK, but when her husband lost his job, settlement could not take place on that day. Now because her husband has a new job, settlement is scheduled to take place on Aug 31 which is the last date for closing on her contract.

The problem is...the sellers were counting on closing on the earlier set date and they made plans to go on vacation putting down deposit money to do so. When the house didn't settle, they decided not to go on vacation.

They now are asking the buyer to reimburse them for their vacation deposit money. The buyer is not at fault. The seller was not wise to wait until the settlement took place.

FYI: It is not at all unusual for home not to settle on the date listed on the contract. It happens all of the time especially if the buyer has an FHA loan. Extensions are granted in this case. It doesn't make any sense for the sellers not to wait a little longer for settlement. Who wants to put their home on the markey again and wait for a new buyer and another couple of months after that to settle?

The sellers who are asking for money for their vacation deposits are creepy. I heard of some crazy transactions and this one is up there with the weirdos.

The buyer should show up on Aug 31 for her settlement and pay the purchase price plus closing costs. I would NOT give the seller a penny more.

She said "we plan to close ASAP starting the 31st of August" That is NOT closing the 31st of august. The house is no longer under contract after the 31st, which is Monday.

My understanding is similar to yours. The contract (which had been agreed to by everyone) expires August 31st. The OP & her husband asked to have that date extended. The sellers agreed, but with the stipulation that they receive some financial compensation.

So the buyers want to change the terms of the contract, and the sellers - in return for the courtesy of extending the date - are asking for something in return. I don't find anything unreasonable about that at all. Their goal is to sell their house, not to have it drag on & on. I have no problem with them asking for something in return for their being willing to change the terms of the contract. They don't have to extend the date, and in fact might be concerned about the buyers' financial situation at this point. Lots of sellers in this situation might not agree to extending the date, and with good reason.

The buyers are the ones who are not honoring the contract initially signed by everyone. The sellers have done nothing wrong.

SweetKelly, I do wish you luck! I hope things move along quickly and easily for you.

151949 · ‎03-09-2010

Most people who sell their house need the proceeds from that sale for the purchase of another house. And usually they schedule the closing on that new house shortly after they close on the sale of their old house because they need to move into that new house.Also, usually people schedule the movers around those closing dates. When one of the parties is unable to fulfill the terms of the contract it has a lot of repurcussions.

Carmie · ‎10-25-2010

Sweetkelly, you are your husband are more than generous. Your sellers are irresponsible people. I hope your transaction goes through smoothly. Best of luck and well wishes to you.

Also note that unless YOU are paying your realtor a finders fee, HE/she is working for the sellers too. Both the sellers and buyers realtors are being paid by the seller from the brokers commission. By law, they must both do what is best for the seller.

Legally, if being paid by the seller, the realtor can't represent the buyer unless they are also being paid by the buyer to do so. If they are, this will be disclosed to the buyer and seller. This is very clear in real estate law.

jaxs mom · ‎04-18-2012

@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?

ok I read your update. It's up to you. Is this your dream house? Do you want to pay them because they CHOSE to not take the vacation they planned? It was their choice to not go, it had nothing to do with you. They could have gone anyway. Unless they didn't have the money in which case they shouldn't have booked it in the first place.

Don't Change Your Authenticity for Approval

qvcfreak · ‎03-10-2010

I put my house on the market in March 2015 and had a horrible realtor. waited the 3 months I was in contract and pulled it. On July 18th I placed it back on the market with a very good realtor, first showing on the 24th and sold on the 25th. We were supposed to close on the 31st of August but everything was going smoothly, we closed on the 26th. I had my money wired that same day and Saturday I received my earnest money from the buyer. I didn't look for a home during the sale because I was afraid of what might happened. I paid off all of my bills and will start looking for a new house on October. I'm excited and hope everything goes well for me.

I hope the OP gets everything straightened out and I wish her and her husband the best.

151949 · ‎03-09-2010

@qvcfreak wrote:
I put my house on the market in March 2015 and had a horrible realtor. waited the 3 months I was in contract and pulled it. On July 18th I placed it back on the market with a very good realtor, first showing on the 24th and sold on the 25th. We were supposed to close on the 31st of August but everything was going smoothly, we closed on the 26th. I had my money wired that same day and Saturday I received my earnest money from the buyer. I didn't look for a home during the sale because I was afraid of what might happened. I paid off all of my bills and will start looking for a new house on October. I'm excited and hope everything goes well for me.

I hope the OP gets everything straightened out and I wish her and her husband the best.

So where are you living between selling your old house and until you find a new home? I would not want to be throwing good money away on paying rent somewhere.