My house went under contract at the first part of this month and I was scheduled to close on tomorrow morning. I kept calling my realtor to get the details of the closing. He finally tells me today that the seller is having credit issues and cannot close tomorrow, but will instead need an extension. I am in a dilemna because I cannot close on my new home until this one is sold. What must I do? Can I get out of my contract with my current realtor if this house does not close in a week due to the sellers credit issues?
2006-06-29 11:44:58 · 4 answers · asked by worried 2 in Business & Finance ➔ Renting & Real Estate
Did your contract with the buyer have a date that closing must occur by? If it does, you can wait until that date passes and then put the house back on the market. You might be able to keep the earnest money also, depending on the contigencies in your contract. This depends on if your contract has a financing contigency.
Personally, I wouldn't give them an extension, since, if they have credit problems, those problems will probably not be solved in just a few weeks. You'll be sitting in your same situation for months waiting for closing.
Good luck!
2006-06-29 11:51:40 · answer #1 · answered by Mama Pastafarian 7 · 1⤊ 0⤋
Your purchase agreement spells out out the deadline.....anyone who is house shopping and hasn't been pre-approved for a loan has no business tying up a property.....
Don't extend the contract BEYOND tomorrow...If they can't close on schedule too bad.....and get your property relisted ASAP....Also, make sure your next contract does NOT contain the buyer qualification contingency...i.e. "buyer applies for a loan after locking up your property."
You can fire your realtor at anytime.
Credit problems are never resolved in a timely manner.
2006-06-29 16:39:50 · answer #2 · answered by Paula M 5 · 0⤊ 0⤋
If it's only a couple/few days, ride it out. But, try to get a good feel for whether it's going to happen at all. You don't want to start all over again unless you have to.
2006-06-29 11:49:07 · answer #3 · answered by Tom S 3 · 0⤊ 0⤋
YOUR THE BOSS...find out the laws where you live.
That is so annoying waiting on someone because they have shitty credit!
been there!
2006-06-29 11:48:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋