I'm selling a house and I REALLY NEED THE MONEY. The potential buyer is under contract to close Jan.31. But we are now less than a week away and she has decided to change the type of mortgage she wants. So basically this will delay the closing for 2-4weeks. I have bent over backwards to accomodate her because she is a first time homeowner, but I'm at my breaking point. What should I do? (1)Tell her that if we do not close by the 31st, we will have to renegotiate the price or (2) Have her sign an ammendment to the first contract simply requiring a new closure date. I feel she has already lied by not following through on the original contract so another contract or amendment is sort of pointless. Your advice and help is greatly appreciated.
2007-01-24 20:55:50 · 4 answers · asked by Billy FZ1 5 in Business & Finance ➔ Renting & Real Estate
I know someone will ask.
"Why do you need the money?"
I need it because my job got downsized and my pay was decreased.
2007-01-24 20:57:36 · update #1
Extending the contract is common. What have you got to lose by giving her more time? If you renegotiate the contract, you risk losing her altogether. I would give her one extention and let her know that you are still trying to market the house in the meantime. You can always take "backup contracts" in case she never does fulfill her obligations. By the way, if she does not ever get her loan, she gets her earnest money deposit back .(assuming there is one) I'd also get a signed letter from the lender stating that she actually qualifies for this loan.
2007-01-24 21:09:25 · answer #1 · answered by dreamgirl 5 · 0⤊ 1⤋
My husband and I just went through exactly what you and the potential buyer is going through right now. You go approved 4 months ago for a loan went all the way to the end and lenders came back asking for more money so we found another lender and then the appraisal came back under the original one was so we had to find another lender. Once you are in a binding contract there isn't alot you can do about it. If she has paid you any money for a safe deposit and you pull out you have to give her her money back. If she goes past your contracted closing date you can pull out or give an extension. They are making it very difficult for 1st time buyers to get a mortgage. They want to know the last time you ate practically. All because of 9/11. If and when 1.31 comes around and you haven't closed yet you can have another contract drawn up or pull out it is you house you can do what ever you want too. Just think about this..if you decide to cancel contract with this woman how long do you think it will take for another buyer to be interested or even to start the process again with take twice as long. I personally suggest you stick it out with her contact the lawyer that is doing your paper work they will communicate with the buyers lawyer for you. Also if you have gone through a real-estate agent you can't show the house will in contract.
2007-01-25 09:21:15 · answer #2 · answered by dietpepsigirl77 2 · 0⤊ 1⤋
It should not take 2-4 weeks to change the type of mortgage with the same mortgage company she applied with. She is under contract to close Jan 31 and the lender knows this. So now the lender wants the contract extended? They won't proceed unless it is. I know they can't give you details of her loan, but have they qualified her already for this and are just re-doing the paperwork?
(If she is entertaining another lender, show her the door. This sounds like a dead deal to me).
Personally, I would probably wait unless you are being foreclosed upon with your home. If that is the case, she needs to be told and the closing needs to take place as scheduled.
If it's other bills you are concerned about, call the creditors and explain the problem. Most are very accepting because most people don't bother to inform them.
Continue to show the house and take "backup" offers.
Just to let you know you're not alone in this employment dilemma, it's nationwide and growing. I hope this works out for you!
2007-01-25 06:42:21 · answer #3 · answered by Barbara 5 · 0⤊ 1⤋
Tell her if she doesn't settle by the settlement date, the deal is off, you will keep their earnest money deposit, and you will put the house back on the market. They are under contract...it's not your problem they want to change mortgage programs... it is a contract which they need to take seriously and honor.
2007-01-25 10:05:46 · answer #4 · answered by Anonymous · 0⤊ 1⤋