Trouble closing..need realtor advise or others

[suzq]

I am selling my property and I entered escrow several months ago. Due to the belt tightening (by the lenders) the investors buying my property were not able to close on the date agreed to, (due to 20% down instead of 10% as first agreed to by lender.) They have asked for additional time from me. I feel they really want to buy the property but what advice can anyone offer on how long I should wait? I am frustrated because I have moved out and my property is now vacant (it's a tear-down) and I am now paying my rent AND my mortgage payment! If their first approved loan expired because they couldn't close on time can they get an extension or do they have to start all over again? I'm trying not to let it get me down (or stress me out too much). But of course it has. :(
Has anyone gone through this kind of thing? Any advice or opinions are most appreciated. Thank you so much.

[REbuyersgroup]

Not an uncommon problem today. You may want to request additional escrow money to be held with your escrow agent to tie up the property, along with explicit timelines for closing.

They could drag it out for months and never get financing, then you are left with nothing.

You may want to ask that they compensate you for your finance payment in order to extend the contract since it is not an expence you planned on paying. Not likely you will get it, but always ask...

Another option is a kickout clause. This allows you to continue marketing the property while they hunt down another lender willing to playball with them. If you find a better buyer, they are out of luck and you move forward with the new buyer. You may even consider taking less, to get someone to close quickly, but make sure they are well qualified.

How long can you hold out, if these buyers don't perform? Remember, every month that goes by is another reduction in profits.

[Mike Taylor]

You also might want to make that extra earnest money non-refundable. Also, give them a new time frame to find a lender and get approved. Talk to the lender if you can.

[FlatFeeKing]

keep marketing the place, dont count on them. hopefully they gave decent earnest money that may at least help pay for the month or so you took it off the market for them

[jessiesc]

All good advice, specially the non-refundable earnest money and the kick out clause.

Both methods may help you.

In addition, are you using an agent or did you try and go it alone? The reason I ask, is if you are using an agent they may be able to suggest additional local funding venues for the buyers.

Best of luck.

[RobM]

Sounds like some good advice above me...although it just goes to show that you should have had a realtor on your side making sure that things were running smoothly in the event of a hickup

[carlam]

A similar situation happened to my husband and I on a property we owned. You have received some great advice here. Ask for all the above, another escrow deposit (make this enough to cover expenses until the new closing date) which would be non-refundable, a new closing date, continue to market property with a kick out clause if a new buyer steps up to purchase; if they won't agree to a kick out clause, then ask for back up offers - then at least when they can not perform you have another waiting to step up and close. Don't drag out the new closing date, and if they come back again to extend it, don't.

Don't be wishy washy; you have expenses to cover and they need to do due diligence to get to the closing table... they may move on and never look back if they sense that they can drag this on for awhile. Be firm on what you want from them or put it back on the market.