Sold my home and moved to a rental now sure if it will be sold

rmusafer1March 2, 2013

We sold or hour and we were to close on my house on February 27. Some repair requests were made after the inspection. We made arrangements to move on February 27th. On February 25th the lawyer called us and wanted to complete the closing where we gave our final signature and handed over the keys on February 26th. At the meeting with the lawyer it was suggested to us that there was a possibility that the buyer might request for an extension. We turned over the keys as suggested by the lawyer as we wanted to show the buyer that we were ready to close on February 27th.

Come 27th morning when we were loading the truck we get a call from the lawyers office saying that the buyer is requesting for an extension. Even though we were prepared for this the day before by the lawyer we never really expected this to happen. Now imagine the dilemma that we were in at this point. We had sold most of the furniture and gave away for free what we could not sell (since we were downsizing from a 4 bedroom house to a 3 bedroom townhouse) we were moving to a rented townhouse and had already paid for the first and last month rent & deposit.

When we were told on the morning of the closing date we had no choice but to grant the one week extension. We signed the extension. Now, we have sold EVERYTHING I own to downsize and already moved out to a rented townhouse, and not sure if the buyer will get the mortgage approved. Mean while we have to continue to pay the additional expense of mortgage plus rent, home insurance & utilities for both places.

True this was included in the terms and conditions of the extension, but what happens if the buyer for whatever reason is not able to get their issues straighten out by the time of the extended closing date.

What rights do I have? At this point, the buyer is screwing us up on the house sale and creating a financial situation. I want to sue my agent for his incompetence, not one time did he give us any warning that a situation was being developed. The only warning that we had was when the lawyer called us 2 days ahead and wanted to meet with us. Declining another offer, having to pay more mortgages until house actually sells, and having another lease that I signed that I cannot get out of. Am I entitled to get a copy of the loan denial and the reason? Can I get the appraiser's report? What documents am I legally allowed to obtain? What happens if the deal does not go thru next Friday?

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My friend Sue was the buyer in a similar situation. She works only part-time and her mortgage application was turned down due to her low income. The sellers decided to drop their price by ten thousand, she qualified and the whole deal went through. Are you willing to negotiate price at all? Just a thought in case.

    Bookmark   March 3, 2013 at 8:05AM
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Post this on the Buying and Selling Houses forum. Several of the regular posters there are real estate agents.

    Bookmark   March 3, 2013 at 9:20AM
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I am sorry to hear your predicament!

You need to talk to your agent. Normally there is earnest money they deposited which is now forfeited by them as they are past the contingency period presumably - usually it is around 2.5% of the sale price.

However it may be best to try to work with them if possible, they may be able to get a different loan.

    Bookmark   March 16, 2013 at 1:07AM
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