I am trying to purchase a short sale and it closes this week, though the owner is not ready to move out yet. We are ready to purchase, and I would think the bank might grant the extension rather than have it foreclose.
1. For what reasons does a bank typically provide an extension?
2. How long is a typical extension? He wants another month.
Thanks.
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stanw,
What ended up happening in your situation??? We are in a similiar situation now but seller is out of country and doesn't want anyone to move his remaining stuff (most is gone) no matter what offers the listing agent as well as ourselves have made to help him move it. 1 week from closing and he wants a 30 day extension so he can finish up work on his current construction job and get back to move (visa expired so can't just come back and forth now he says). He has a "friend" (probably renter) living in the house. We still want the house but have no idea yet if the bank will grant the extension have been in this almost 5 months now and got bank approval just 1 month ago. Want to believe him but I don't know if it is just another delay. :(
It is my hunch that this seller is playing the system to keep living rent-free. I know of another similar case. The closing date was approaching and suddenly the seller didn't want to close because of this or that. The buyer and agents involved solved every request she had, including an allowance so she could move out. In the end, and after she ran out of reasons not to close, she decided not to close for no reason whatsoever other than she really never intended to close but was just probably buying herself some time to stay in the house rent-free for as long as she could.
Everyone out there is motivated for various unknown reasons.
Beverly Cibulsky said:
Stan... first and foremost, Consult an Attorney!!!! If you should close on a short sale with the seller still in occupancy. There is some type of legal issue with this that I am aware of but not familiar enough and I cannot provide legal opinion or advise! You may have a problem getting the seller out, and then again you may have to agree to an "arms length transaction" (for the short sale lender). It could be that the seller wants you to "walk"!!! Then, the patronizing listing agent will have to start all over with the short sale and the seller has more time!!!! If it was an actual tenant... this happens alot too... than you could consider "cash for keys" a tenant is not party to the sales contract basically. The Seller? well that may go back to "arms lenght issues"
Good luck and best wishes!
The listing agent is completely unresponsive. He has not returned phone calls, texts or emails from my agent for the past two weeks. However, this is the way he has been during the entire time we have been working on the short, so with only 4 more days to go, we have no info on whether the extension was granted or not.
1. How much time does it typically take to get an extension? Is this something that can be done in a day?
2. If it gets down to the last day when it closes, and we do not have an extension, and somehow I am able to convince him to leave, maybe I offer him money, is that too late? Can everything still finalize if he does not sign until the day it closes?
Thanks everyone for your help!
Yup, he is loving his free rent. Apparently, he had the home in a short sale a couple times earlier in the year and also got extensions at that time, and one thing or another happened and the short was canceled. So this will not be his first extension.
I met with him and he said he would move out within the month, though he made no promises, though I believe he will this time. He said he was not expecting the liens and everything else to be resolved so quickly. However, if he does not get an extension this week, I lose the house.
I'm guessing that there is nothing I can do to get this extension for him?
Thanks.