We're the buyers and currently in escrow on a bank approved short sale. We set a close date that both buyer and sellers agreed to, deposited earnest money. We made arrangements to move from Texas to San Diego--hired movers, sold our house, bought plane tickets, and made appointments to have repairs done, etc. A while later the sellers want to change the escrow close date, we said no, now they are threatening to cancel the sale.
The only line that speaks to this in our signed sales contract is about earnest money, which is in the escrow account already. My real esate agent advises just to concede because otherwise they will cancel. When I ask on what grounds? Wouldn't they be in breach of contract? My realtor says she doesn't know she just "knows they can cancel if they want to."
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UPDATE: We asked the sellers to meet us in the middle, split the difference. They have not gotten back to us in 5 days. I think this is absurd and they are stalling. My agent just keeps saying "they haven't called" and I said, "Well maybe you should call them?" But my agent doesn't want to "push them too hard so they cancel the sale"
Isn't 5 days a bit long for this? we had been going back and forth every few hours and now this long silence has me worried. Maybe time to find another place...
I am not surprised. That does not mean I wish you more bumps on this path. Only that it is something that can happen and does happen. Lenders do not like giving extensions. So it is unlikely they can get more than two extensions at this point in the transaction. Usually up to 30 days on the first request.
Asking them to accept one week is not an incentive in of itself for them to want to agree to one week. Especial if they think you are demanding from them. I would not respond with a negative tone when communication with them. Even if they do to you. It may only serves to raise your blood-pressure and exaggerate things to their satisfaction. It may only make them want to push back and not do what they think you want them to do.
Don't get me wrong. I am not saying for you not to have whatever emotional feelings you have, just don't let them know. It will only fuel their resistance.
Again I suggest you find a skilled negotiator to help with a solution. Ask your agent to get input from his/her broker.
As I said before, I allow my buyers of my listings to do their final walk through of the property when vacant before the closing. If there are any unacceptable damages then you can deal with it then.
How many days between the current short sale approval expiration date and the 3 weeks extension of the current closing date?
Hi Karen,
I am curious. What did you mean by "We asked the sellers to meet us in the middle, split the difference"?
What was the real estate attorney's comment in regards to the sellers's request for an extension?
Also the sellers 'not agreeing to the terms of the short sale' is only one way for a seller to kill a deal with little risk.
In this case I believe I read you indicated sellers already signed the approval terms from lender.
They want 2 weeks more, we want the original close date agreed upon, so we are asking them to have one additional week, thus split the difference and meet in the middle. (they have since come back and asked for 3 weeks)
The attorney thinks that they are stalling and will drag this out as long as they can or as long as the bank will extend short sale approval. Why should they move? They are living rent free and want to continue to do so as long as they can--that is the attorney's take on it, I am not saying that is what they are doing.
Sellers have signed the purchase contract and the short sale approval from the bank.
Karen,
Since you don't know what the sellers are trying to accomplish with these requests for extensions, I think you should start looking for another home just in case. One that is not a short sale. Keep fighting for this one, but start checking others out.
That is a good planning suggestion from Pam. One I would seriously consider.
If it is true that you do not really know what the sellers are trying to accomplish, then get your agent/broker to try and find out.
While I agree with most here that you should try to work it out with the sellers, here's where MY worry would lie if I was the buyer's agent in the transaction:
1. Is it really 2 weeks? Or will the "2 weeks" result in asking for another 2 weeks and so on?
2. Has the transaction gone smoothly? As an agent who's had buyers burned on short sales before, there are usually signs of a wishy-washy seller. They won't grant access for showings, inspection, ask for constant reschedules, don't return escrow instructions, etc. The seller's agent is usually inexperienced at short sales or does RE part-time.
Although most short sale contracts allow the seller to cancel if they don't agree to the terms of the short sale, it's the buyer's choice if they want to sue the seller for damages and/or specific performance in a cancelled transaction. Language in the contract or not, it never covers negligence where a seller knowingly took a buyer for a ride and then changed their mind last minute.
1. Yes, we are very concerned that it is not "two weeks" but that in a week or two they will suddenly be asking for even more time. They have already changed the date 3 times so we don't trust that this is the last request for an extension.
2. The transaction has gone fine unti this point. We saw it the first day it was listed, there were several people putting in offers that day, I dont know if we were first offer in or if we just had the strongest offer, but ours was put to the bank. Viewing, inspection, and appraisal were arranged without a hitch. I think the sellers agent is very good, maybe too good as she's making our agent not fight for us.
Karen,
I thought you meant that they were to close at a later date that originally agreed.
Here are my thooughts...NO they should NOT stay one day after closing. You can not rent to them as you have signed you can't do so. If you do need to allow them a certain number of days, (depending on the state laws) you can have them sign and waiver of eviction, a stipulation in writing so to speak. With that a single filing and eviction from the sheriff without notice can be possible. Most attys don't have any idea about how to create waivers of eviction but it is possible in most states.I usd to know the legal name of the documents type but forgot it.. just depends on what kinds of paperwork differing states utilize.
If they wish to close later for a specific purpose AND that time is WELL within the bank's approval date....then let them stay..be sure and close at least ONE DAY BEFORE the expiration of the bank approval..two days is better. (I have had closings where docs were updated 4 times before closing ended!)
They do want to close at a later date than originally agreed. First it was 5 days, then a week later, then 2 weeks later, I just heard back and it is now 3 weeks later that the original agreed upon close date.
The new date is not within the bank's approval date but think they can get an extension. I don't really want them in the house past escrow because I don't know if they will damage the place or not. They signed an agreement with the bank to leave everything "as is" or they will have to pay for damages but this expires after closing so if we go in and they have damaged anything AFTER closing it's on us, before closing and it's on them.
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