closing delayed?

Question

i have sold my home and the contract says the closing on or before nov 17, here it is dec 8 and no closing yet, my attorney says they are waiting for the banks attorneys to schedule a date, according to the attorney there is no problem,

Answer 1

It is not uncommon, as many before me have said, for a closing on a home purchase to be delayed. However, you do have the right to cancel the purchase contract and keep the earnest money for non compliance with the contract. You might want to consider that putting the home back on the market will add more time before the sale will close as well. I am a mortgage broker and I can generally close any loan within 3 weeks if there are not problems with the customer or the home itself. It sounds to me like this has dragged on for a LONG time and I would be concerned the customer just doesn't qualify and they and their loan officer are doing everything they can to try and make it work. If it were me, I would want to speak to the loan officer of the potential buyer and find out exactly what is going on, do they not have the down payment, is their credit really bad, is their income not enough, or is the loan officer just incompetent? If they are just waiting for a scheduled closing date- then the loan must be "clear to close". If it is not "clear to close", then they are waiting on more than just scheduling. Remember you have the right to cancel the contract at this point for non compliance, but if you put it back on the market you might be faced with a decreased sales price and even longer before it will close.

Answer 2

Your attorney is not telling you whole truth and you should tell your attorney that he or she can either share specifically what issues are holding the bank from funding or that you are calling the contract void as the closing date has expired. If the attorney cannot share that information with you, or seems unwilling to cancel the deal, then fire them immediately, in writing, and alert them you will be retaining the seller's earnest money on the basis of breach of contract (why your attorney does not know this is beyond me).
It sounds to me like your attorney is more interested in his or her fee than in your well-being. If there was no problem, then the deal would close per contract. It is true that problems can develop, yet any good attorney will not close a deal on an expired contract. The person who told you they bought and sold 14 homes this way is either a savant or an idiot. Either way, it's daffy advice from a legal perspective.
The contract is no longer valid and has expired. Do you really want to sell your home based on an expired contract? The contract must be amended to show the new closing date.
Where did your attorney go to school, Dr. Scholl's school of law?
Tell your attorney to re-draw the contract with a firm closing date or tell your attorney they are fired and you are keeping the earnest money.
The attorney may keep the earnest from you as a fee, yet if the attorney has acted without a clue, as the case is here, then you should definitely not pay a cent to this putz. Tell the attorney, if they try to bill you, that you are going to file a formal compliant (then do it) with the State Bar Association where the attorney practices. You won't get billed...trust me. Your attorney is a total idiot and should not be allowed to execute residential real estate deals. He or she certainly isn't representing your best interests.
Get a different attorney next time.
Good Luck.

Answer 3

Just to make you feel a little better... I've bought and sold 14 houses, and only one has closed on time. The usual date is 3-4 weeks after the stated closing date, one went 3 months before it actually closed.

Title problems, mortgage problems, both.. I've heard it all! Don't give up, just get your foot firmly up your realtor or attorney's backside and make them get it done.

Answer 4

If it is written that it should close before Nov 17 then they probably could forfeit their deposit. I work for a builder and coordinate all the closings. This is definitely a stall tactic. Usually the buyer forgot to disclose something to the mortgage or the worst - they are still shopping for a lower mortgage rate. Contact whoever is representing you and demand a reasonable agreeable date.

Answer 5

Purchase closings are routinely late. Most banks will still fund the loan without an addendum to the purchase agreement extending the closing date, but you might want to seek an addendum just to protect yourself.

Answer 6

Obviously there is a problem or you would have closed by Nov 17. What does your REALTOR® say?

Answer 7

take action if you feel you can put it back on the market and get as much for it. You will at least get the earnest money deposit for this buyer wasting your time.