Sponsored: Buyers seek extension as they apply to another bank; what can sellers do?
Q: We were due to close the sale of our home a week ago. The buyers are late getting a loan in place. In fact, we were all waiting for the buyers’ loan documents to be sent to escrow. Instead the buyer’s loan officer called our listing agent and asked if she had heard from the homebuyers or their agent? This sent shock waves through our side of the transaction. We had six other ready, willing and able buyers ready to purchase our home.
It turns out the first-time homebuyers were uploading documents to their loan officer. Unfortunately, they also uploaded our seller disclosures and one to two inspection reports. As a result, the underwriters at the buyer’s bank insisted on seeing all the other reports and inspections referenced in our seller questionnaires. Upon seeing the termite, property, roof and chimney inspection reports, the bank underwriters and their supervisor(s) demanded that we make all the repairs before the close of escrow.
In the meantime, the buyers are applying at another bank for a home loan. We already granted a seven-day extension. The homebuyers are now requesting a 15-day sale extension. What do other sellers do when the circumstances require an additional three-week escrow period?
A: Make sure you are in touch with a real estate attorney. You might need him or her in case of a dispute over the earnest money deposit. The real estate attorney will provide the correct advice to protect your interests.
Conversely, your listing agent can negotiate an extension that includes the buyers paying you principal, interest, taxes, insurance and utilities every day past the original closing date.
Some sellers and listing agents have also negotiated the daily cost of interim living quarters while waiting for the proceeds of their home sale. You have the power in the transaction. Make sure you use it wisely.
Realtor Pat Kapowich also shares proven consumer-protection strategies for homebuyers and home sellers at YouTube.com/PatKapowich and SiliconValleyBroker.com. Contact him at 408-245-7700, Pat@SiliconValleyBroker.com DRE# 00979413