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nicopico13
that year flew!
Member since 11/09 3008 total posts
Name:
Nicole
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Why do I feel like we're getting screwed with this home purchase?
We have been looking for a home for over two years. We finally sold our house and more than accomodated our buyer. Now we are in the buyers position and our sellers have been hard asses the whole process. They wouldn't work with us on price when the appraisel came in super low, but we loved it too much to pass on it. We told them we wanted to be in end of May which they said was fine and they would stay in a hotel if it came down to it....well fast fwd to today, we still haven't closed and they won't lock in a date. By contract they have until the 28th of June. Since we didn't close when we wanted to, our closing costs have gone up, our rate will go up etc. and if they go over the 28th then what? How is it that we have to pay more and more and more and the seller can just putz along with no reprecussions? Luckily we have been staying with family, but come on! Sorry for the rant, but I am so beyond frustrated with this process.
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Posted 6/1/16 11:51 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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Why do I feel like we're getting screwed with this home purchase?
What does your real estate attorney say?
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| Posted 6/1/16 11:56 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Why do I feel like we're getting screwed with this home purchase?
Your attorney needs to send a time of the essence letter. Your contract should have had more teeth in it to incentivize the seller to leave. I include that if the contract goes beyond the on or about date the seller must pay buyer $300 a day for every day beyond the agreed sell by date. This way, it really encourages sellers to get their act together because they know it is as expensive as a hotel room to stay in the property. You really are bound by the contract terms.
Message edited 6/1/2016 6:01:23 PM.
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| Posted 6/1/16 12:06 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Why do I feel like we're getting screwed with this home purchase?
Ask your attorney to send a "time is of the essence" letter. It stinks when people act so differently now that you're in contract and locked in but you're stuck with whatever the terms of the contract are. We had a lot of the same nonsense with our seller. She was a real pain in the ass to deal with and did some shady stuff at the end. But in the long run you'll be in the house you love.
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| Posted 6/1/16 12:09 PM |
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loveus
LIF Adolescent
Member since 9/13 684 total posts
Name:
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Why do I feel like we're getting screwed with this home purchase?
Unfortunately since your contract says 6/28 they are not obligated to leave or even close. My attorney stressed not to lock in a date that didn't go until contract. We cut it close with closing and our locked in rate but it really means nothing bc the seller can refuse to pay the fees and at this time you have so much time and money you won't walk away.
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| Posted 6/1/16 12:39 PM |
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nicopico13
that year flew!
Member since 11/09 3008 total posts
Name:
Nicole
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Re: Why do I feel like we're getting screwed with this home purchase?
Posted by EatingMyVeggies
What does your real estate attorney say?
He said he would contact their people and try to push it along but that they have until June 28th so nothing is in violation right now. 
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| Posted 6/1/16 1:03 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Why do I feel like we're getting screwed with this home purchase?
Posted by nicopico13
Posted by EatingMyVeggies
What does your real estate attorney say?
He said he would contact their people and try to push it along but that they have until June 28th so nothing is in violation right now.
wait, your contract date is 6/28? Unfortunately for you, they are not in violation. I would see if you can still get a rate lock extension.
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| Posted 6/1/16 1:42 PM |
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nicopico13
that year flew!
Member since 11/09 3008 total posts
Name:
Nicole
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Re: Why do I feel like we're getting screwed with this home purchase?
our contract date was May 27th, but they have a month from that date before the contract expires. We just locked in, but that's for 15 days...I guess its a "short lock"?
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| Posted 6/1/16 1:54 PM |
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JDubs
different, not less
Member since 7/09 13160 total posts
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Re: Why do I feel like we're getting screwed with this home purchase?
We were in the same situation when we bought our house. At the time the first time home buyer credit expired June 30th so we put something in the contract that we were to close by that date or I think like the PP said they would owe a bunch of money for each extra day they stayed. We also lost our rate lock, it was a pain. I think they were dragging out the process because they wanted their daughter to finish out the school year. There were also some fence/pool CO issues. We went into contract in March and finally closed June 29th- even then we had to keep some money in escrow because they had a fence issue w/ the town that wasn't resolved.
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| Posted 6/1/16 2:07 PM |
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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Re: Why do I feel like we're getting screwed with this home purchase?
Posted by nicopico13
Posted by EatingMyVeggies
What does your real estate attorney say?
He said he would contact their people and try to push it along but that they have until June 28th so nothing is in violation right now.
Right. They haven't broken any rules yet. So it's a pain, but you're not being officially screwed until the end of the month.
Talk to your broker/bank and see what your options are re: your rate.
FWIW we had a similar situation last year. We had a rate lock that would take us into our contract date, and anything longer would be $500/week for a max of four weeks. We needed to extend for almost 3 weeks... but our mortgage broker at the bank got the fees waived.
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| Posted 6/1/16 2:21 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Why do I feel like we're getting screwed with this home purchase?
You can pay a small fee to extend your rate lock or you can just relock in 15 days. Rates likely won't shoot up in that time anyway. Your mortgage broker should advise you on that. We had a really long close and we held out, per our broker, for a long time and rates actually fell.
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| Posted 6/1/16 2:28 PM |
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Re: Why do I feel like we're getting screwed with this home purchase?
Looks like you will have to pay for a rate lock extension. Check the language on the contract. If it says "ON or ABOUT JUNE 28th" that means sellers have until JULY 28th to close. Technically they are within their rights to close anytime before 7/28. I would budget for ensuring the mortgage contingency doesnt expire before then and paying fees to extend as needed.
Yes, being a buyer stinks. We just went through this but thankfully our sellers were motivated because they had tenants who were breaking the lease early to buy their own home.
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| Posted 6/1/16 3:59 PM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Why do I feel like we're getting screwed with this home purchase?
we got multiple extensions on our rate. They may only give you 15 days now, but when that is getting near, just request another extension. If you prove that the contract says 6/28, they won't give you a problem.
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| Posted 6/2/16 8:01 AM |
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Sparrow
LIF Adult
Member since 11/10 6826 total posts
Name:
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Why do I feel like we're getting screwed with this home purchase?
Ugh, we went through similar, I know how it is! Our seasoned realtor said he had never seen anything like what we went through, it was a mess. . . We closed months after we were supposed to, it was such a headache. I was very pregnant at the time and we were barely able to get in the house before the baby was born. One day you will look back and (sorta) laugh.
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| Posted 6/2/16 9:25 AM |
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Re: Why do I feel like we're getting screwed with this home purchase?
Unfortunately, the contract governs.
Sometimes with timing, people say they will be reasonable or can get out by x date, but things then come up to change the timeline. It happens on the buyers' end, too, when sometimes the bank/loan process takes longer than expected.
I always recommend to my buyers, BEFORE they lock a rate, to find out what is happening with the seller. It's best for the attorneys and/or agents to confer with both sides to see what the expected timeline is, and ask the seller "If we lock the rate for 15 days, can you close, or do you need more time?" If a buyer goes ahead and locks a rate on the assumption of when the seller can close, the buyer will often then have to pay to extend the rate.
If the on or about date is 5/28, then yes, the seller has until 6/28 to close. So if the agreed upon terms included closing by late May, the on or about date should have been something like 5/1 to protect you on that.
At this point, all you can really do is have your agent or attorney appeal to the seller's good graces or bring some pressure to bear (by pushing for closing), but beyond that, you don't have any other kind of recourse.
It sounds like it is an inconvenience but hopefully something that will seem relatively minor once you are in your new home and enjoying it! It will all be worth it!
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| Posted 6/2/16 12:45 PM |
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nicopico13
that year flew!
Member since 11/09 3008 total posts
Name:
Nicole
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Re: Why do I feel like we're getting screwed with this home purchase?
So let me ask this since they JUST pushed the closing again to the last day of the contract. If they push it again, past the contract date, can we really not walk away without penalty? The contract just protects the seller who has no money tied up and a place to live? My husband had to pass on a great business contact opportunity because we are in limbo with these jerks. I am beyond livid right now, I'm sick of being displaced, living out of boxes with two small children!
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| Posted 6/8/16 2:43 PM |
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evrythng4areason
And then there were 4
Member since 1/10 5224 total posts
Name:
Kayla
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Why do I feel like we're getting screwed with this home purchase?
Your contract date is usually an on or about date-you both have up until 30 days following that but really it can go even longer (iirc ours did). You should have been told this by your lawyer though...for example, the bank held up ours-we always gave them everything they asked for within 12 hours, and the seller was motivated bc they were about to foreclose on the home. Every day we were delayed they lost money.
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| Posted 6/8/16 8:19 PM |
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evrythng4areason
And then there were 4
Member since 1/10 5224 total posts
Name:
Kayla
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Why do I feel like we're getting screwed with this home purchase?
Double post
Message edited 6/8/2016 8:20:42 PM.
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| Posted 6/8/16 8:19 PM |
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Re: Why do I feel like we're getting screwed with this home purchase?
Posted by nicopico13
So let me ask this since they JUST pushed the closing again to the last day of the contract. If they push it again, past the contract date, can we really not walk away without penalty? The contract just protects the seller who has no money tied up and a place to live? My husband had to pass on a great business contact opportunity because we are in limbo with these jerks. I am beyond livid right now, I'm sick of being displaced, living out of boxes with two small children!
Do you mean that if the on or about date says 5/28, that they want to schedule closing on 6/28? That is within the time frame contemplated by the contract, so there's really nothing wrong with that.
Is a closing being scheduled for that day? Meaning that the attorneys set a time and place, the bank attorney is on board with it, etc.? If so, it's really not so easy to cancel it at that point. It's one thing for a seller to say "we'll aim to close in early June" and then have to schedule later than when was first anticipated. But if a closing is scheduled, it's a more concrete thing, as there are a lot of moving parts to line up.
Are you sure that your lender has given the clear to close? The attorneys can't and won't schedule a closing until they have full clearance from the lender. Sometimes a buyer has their commitment, a rate lock, etc. but doesn't yet have clearance.
Do you know what the delay is on the seller's end? If it's something like they are waiting to line up a closing on a new purchase, then perhaps you can work out a post-closing possession agreement. So you can close, and know that the house is yours (and preserve a rate lock, etc.), but the seller can stay in the house for a few days, a week, etc. in order to bridge the gap between their current home and new one. But if you don't know what their situation, i would try to find out (have your attorney ask) where they are going and why they are not yet ready to close If there is good communication about this, there are ways to work it out.
If they really drag it out beyond the time frame contemplated by the contract, then your attorney can send a "time is of the essence letter" and take other legal steps to compel the closing.
At this point, I don't know why you would want to walk away (even if you could get your down payment back). I'm sure it will work out. It's not unusual for sellers to need longer to close than they first anticipated, because moving is complicated (on both ends, I know). But this is why communication among the agents, lawyers, etc. is really key - if everyone knows what is going on and why, and their expectations are on the same page (even if things change and expectations have to change), it really removes a lot of the stress.
I obviously don't know the ins and outs of your situation, but you should definitely be speaking to your attorney to get more info about what is going on!
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| Posted 6/9/16 9:05 AM |
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nicopico13
that year flew!
Member since 11/09 3008 total posts
Name:
Nicole
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Re: Why do I feel like we're getting screwed with this home purchase?
We are clear to close, everything is set on our end, it's the sellers holding it up. Apparently they are trying to close on a home prior to closing with us so they have a seem less move. We got an accepted offer and went into contract in March. Our home was sold and closed in April. We told them that we would be homeless come April, but would like to be in by end of May to give them time to move out. They agreed and said no problem, they would get a rental or stay in a hotel if need be which was quite obviously a lie. They are an older remarried couple-no kids and are aware we have two small children. Really it's that we are so frustrated at this point, we don't want to walk away, but it seems like they keep stringing us along. It went from no problem to pushing it to the very last day of the contract. Our agent should have known to use a different date so that the final day would not be end of June. It's just been nothing but headaches this whole process. Not to mention the home next door just went up for sale, $30k less and with more to offer so it's just another slap in the face!
Eta: we are in talks regarding closing post possession, but we are unsure how exactly we are protected in the event something happens to the home in the time they are still there
Message edited 6/9/2016 10:24:47 AM.
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| Posted 6/9/16 10:19 AM |
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Re: Why do I feel like we're getting screwed with this home purchase?
Posted by nicopico13
We are clear to close, everything is set on our end, it's the sellers holding it up. Apparently they are trying to close on a home prior to closing with us so they have a seamless move. We got an accepted offer and went into contract in March. Our home was sold and closed in April. We told them that we would be homeless come April, but would like to be in by end of May to give them time to move out. They agreed and said no problem, they would get a rental or stay in a hotel if need be which was quite obviously a lie. They are an older remarried couple-no kids and are aware we have two small children. Really it's that we are so frustrated at this point, we don't want to walk away, but it seems like they keep stringing us along. It went from no problem to pushing it to the very last day of the contract. Our agent should have known to use a different date so that the final day would not be end of June. It's just been nothing but headaches this whole process. Not to mention the home next door just went up for sale, $30k less and with more to offer so it's just another slap in the face!
Eta: we are in talks regarding closing post possession, but we are unsure how exactly we are protected in the event something happens to the home in the time they are still there
You can arrange for sellers to pay you rent post-closing. This was a similar situation to what DH dealt with years ago when he bought a home. The sellers were dealing with outstanding C/O issues on their next house and had to delay the closing 3 times. DH accommodated all the requests but when the seller asked to close 2 weeks after the 30th day from the "on or about" date on the Contract, he had his attorney draft a Rider/Rental addendum to the contract which basically said Seller could stay in the house for an additional 3 weeks AFTER closing but rent would be paid at the rate of $XXX per day. For his trouble, the sellers opted to leave half the furniture to him and 2 extra air conditioners.
Your attorney will have to work out some sort of agreement w/ sellers to coordinate. Sorry the sellers are being a PITA about all this!! That stinks.
Message edited 6/9/2016 12:11:25 PM.
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| Posted 6/9/16 12:10 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Why do I feel like we're getting screwed with this home purchase?
Everything the seller is doing is within the bounds of their contract. They call it "on or about" for a reason and that is not a definite date to close by any means.
Paying rent post closing doesn't do much here because the seller is not electing to close yet and they don't have to either since it's in their right to not be forced to close.
They have a minimum of 30 days after the on or about date on the contract to even be pushed to close. If you aren't closed by July 28th, just walk away. If you want the house, then I would just deal with it.
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| Posted 6/9/16 3:17 PM |
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Re: Why do I feel like we're getting screwed with this home purchase?
Posted by nicopico13
We are clear to close, everything is set on our end, it's the sellers holding it up. Apparently they are trying to close on a home prior to closing with us so they have a seem less move. We got an accepted offer and went into contract in March. Our home was sold and closed in April. We told them that we would be homeless come April, but would like to be in by end of May to give them time to move out. They agreed and said no problem, they would get a rental or stay in a hotel if need be which was quite obviously a lie. They are an older remarried couple-no kids and are aware we have two small children. Really it's that we are so frustrated at this point, we don't want to walk away, but it seems like they keep stringing us along. It went from no problem to pushing it to the very last day of the contract. Our agent should have known to use a different date so that the final day would not be end of June. It's just been nothing but headaches this whole process. Not to mention the home next door just went up for sale, $30k less and with more to offer so it's just another slap in the face!
Eta: we are in talks regarding closing post possession, but we are unsure how exactly we are protected in the event something happens to the home in the time they are still there
In terms of you being protected if you opt for a post-closing possession agreement, the attorneys work out a written agreement, and the seller leaves money (a portion of the proceeds) in escrow. Then, when you take possession, you do a walk through of the house and notify your attorney of any issues or problems, or give the ok for the escrow funds to be released back to the seller. But let's say the sellers stayed in the house and broke a window or put a hole in the wall when they were moving out. In that case, you would get compensation for that damage from the escrow funds.
I would also have your attorney speak to the sellers' attorney (I assume he/she is handling the sellers' new purchase as well) to find out exactly where things stand. What is the hold up with their purchase? Is it that the sellers of your sellers' new home is delaying? Is there a title issue or a missing C/O that is being worked on? Is it that the process is going slow with the sellers' mortgage?
Unfortunately, unless you are buying a vacant home (and sometimes even then), you can never be sure of when exactly the sellers will be ready to move out. They can verbally say what they want, but at the end of the day, the written contract supersedes any previous oral agreements. As an agent, when I'm sending all of the information to my buyer's attorney, I tell the attorney that my buyer wants/need to close by x (and tell the attorney why - kids need to be in school, starting new job, etc.) so that the attorney can make sure the on or about date contemplates closing in the desired time frame.
Given that the sellers in this case are trying to coordinate buying a new house, it doesn't sound like they are stringing you along and it certainly doesn't sound like they will be backing out of the sale. Just sounds like a timing/logistics issue.
Hang in there!
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| Posted 6/14/16 11:02 AM |
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