We have bought a home and are closing tomorrow. Today, we hear that the seller can't leave the home until they get approved for a loan on another home. We are all packed. Have called utilities, phone, etc. We are ready to move in tomorrow!! What is going on? What can we do?
2007-12-27 05:58:53 · 17 answers · asked by MdM423 1 in Business & Finance ➔ Renting & Real Estate
lol kick em out. its your house now. that is what i would do. You already signed, its your house. Kick them out. Is it part of the agreement that they would move out tomorrow? If so, they need to leave. It's not your fault they cannot find a bank to give them money.
2007-12-27 06:05:22 · answer #1 · answered by Anonymous · 2⤊ 3⤋
Well I may not have an answer, but am in the same boat. I was supposed to close today only to have them say that there is some problem with the home they are purchasing. I made sure not to have a contingency on them finding a place in our contract but I don't know if the "time is of the essence" phrase was in the sales agreement or if that varies from state to state. After talking to my RE Attorney who advised against a rent-back (I agree since they asked for it for almost 3 weeks) I decided against it. Also note that you need to contact your mortgage company too, as they are specific about the loan being used for your occupancy and I think that might cause problems as well although I am still waiting to hear back (just for my own knowledge).
My rate lock expires next Friday so I am not sure what will happen, if we don't close by Thursday and interest rates rising I may be in a world of hurt. I am hoping my RE lawyer can work this out (she said 99% of the time they do) and that I am only delayed by the one week.
2007-12-28 16:49:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
DO NOT close on that home until they are OUT!!!!!
Them not vacating is a breach of contract on THEIR part, but only in certain circumstances.
As a Realtor, I make my clients sign a separate document that I had an attorney to draw up, if they insist on going that route, that they are doing so against my advice...that is how serious that is.
Here is what you will be up against if you allow them to stay:
1. Legally, the day you close on the house, you become a landlord. You now have to go to court to evict the "tenants" which can take another 30 to 60 days, if they don't leave.
You can sue for breach of contract, but you CANNOT SUE for rental payments...b/c you DID NOT have a pay-rent agreement.
2. Your house will be uninsured. The "tenants" don't own the property..so their insurance will became null and void the day of closing. Yours was given to YOU to allow you to close, and YOUR insurance company believed you were going to be LIVING there. You can't get full-coverage insurance on a rental (yes, it doesn't matter if you received rent or not...it's a legal rental the day you closed...no matter HOW TEMPORARY).
3. Any damages that they do to the property, they can claim were there when you originally saw the property for purchase.
4. Don't expect the property to be left in move-in condition...you will void any leverage that you have, by closing on the home.
You see why this is a big deal to allow someone to stay after closing?
You need to get your Realtor involved who should have been communicating with the selling agent to make sure things are moving along on schedule.
If you didn't have a Realtor...NOW you know why you should have got one.
PS: If you do not have "time is of the essence" written into the sales agreement, then if the sellers miss the closing date, you CANNOT sue...it is a TARGET date.
2007-12-27 15:15:25 · answer #3 · answered by Expert8675309 7 · 3⤊ 0⤋
The first thing you have to find out is this.
Was this transaction done with what is called a CONTINGENCY?
Call escrow they'll tell you. If they say Yes it was contingent on sellers escrow closing, then you have to wait.
If they say no then ask them when and if the property is going to be recorded into your name. Find out if the seller has signed the deed yet. If the seller hasn't signed the deed yet then he will most likely refuse to sign it until his loan is approved.
However if you find out that the seller is coming out with alot of money not just a little, then chances are they will be approved for the loan.
Find out those things in that order and that will give you some sanity.
2007-12-27 19:12:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The answer is simple. You don't close. I would presume that your contract/offer to purchase states that the home shall be vacant at closing. If so, you are not in violation of the contract. THEY are. If you still want to close, insist on a considerable amount of cash being held in escrow from the sellers to cover YOUR expenses in moving elsewhere temporarily.
Did you use real estate representation here ? If not, now you know why you should have.
2007-12-27 15:32:56 · answer #5 · answered by acermill 7 · 1⤊ 0⤋
First calm down.
Ask yourself, do you have to move tomorrow or can you stay where you are a little longer.
If you can stay, you can have the seller do a lease back from you. I would charge them double what your mortgage payment is going to be.
Set a time limit for when they have to be out. After this time period, charge them 3 times what your mortgage would be.
Get the first part upfront at settlement. For example, if they need to stay for 14 extra days, get this 14 days at settlement. If they move before the 14 days, you still keep the money.
I would also get a deposit from them and inspect the house BEFORE you move in and after they move.
I would have the settlement company escrow an additional 3 months mortgage payment in case they don't move. If they move out as they agreed to then the deposits can be returned.
If they don't agree, then they can move out on Friday.
PS GET EVERYTHING IN WRITING. This is a simple lease back agreement that the realtor should have or the settlement company. Things like this do happen.
If the seller says that they don't have anywhere to move, they can always get a POD storage unit and live in a hotel.
If they agree to settle and move out ASAP, I would wait until Wed, Jan 2 and settle after they move out and you reinspect the property.
DO NOT SETTLE until they have moved out OR you have a lease back agreement.
2007-12-27 14:32:54 · answer #6 · answered by Anonymous · 2⤊ 1⤋
If the deal was contingent on their purchase, you should have had your real estate agent keep a closer eye on the other party. Better still, never allowed them to put that contingency into the contract in the first place.
If it is not contingent, and this is not an expressly stated clause in your contract to purchase with them, then simply have your agent tell their agent that you don't really care where they go once they leave your new home.
If they do not vacate, sue for specific performance.
2007-12-27 14:08:13 · answer #7 · answered by DEACTIVATED 4 · 2⤊ 1⤋
Sometimes the seller can add something on to the contract saying that the buyer can not move in until they have a new house
2007-12-27 14:08:03 · answer #8 · answered by ? 3 · 1⤊ 1⤋
What fluke said. NOBODY cares about YOUR interests but your lawyer. You can't close until you are assured of possession. If you had a lawyer you would have been advised of your options before you got into this mess. There are solutions & potential remedies for any losses, but they are fraught with problems.
2007-12-27 14:31:26 · answer #9 · answered by Anonymous · 1⤊ 0⤋
actually, you guys haven't closed so you don't actually own the house until that final paperwork is done. you could offer to rent them the home--i have seen that put in a lot of mortage paperwork. charge them whatever you have to so that it covers your mortage payment and the costs you have to put out to stay somewhere besides the house. i'll bet they move out pretty fast once you tell them how much it's going to cost them to rent the house from you.
2007-12-27 15:15:59 · answer #10 · answered by s and d e 7 · 0⤊ 0⤋
They are wide open for a civil suit if they don't close on the contract date. I hope they realize that they can be held responsible for every expense incurred by you, possibly, plus damages for inconvenience.
Your realtor should be intervening for you, But, what the hey, I've never known one who was worth their salt, in 50 years dealing with them.
2007-12-27 14:08:47 · answer #11 · answered by ed 7 · 0⤊ 1⤋