Seller yet to fulfil bank conditions, closing date a week away

cookie_growSeptember 14, 2010

Hello,

I am in the process of obtaining a mortgage and the bank had several conditions. One of them was the sellers had to fix a broken vent in the attic. Once they fix that the bank appraiser was to evaluate and then finalize things.

We are a week away from closing and the sellers have yet to inform everyone whether the repairs have been done.

Both attorneys and agents (seller/buyer) have been trying to contact the sellers for the past several days. They do not return voicemails and provide no update. So we do not know whether the repairs have been made and so the bank is also still waiting to give the final approval seal.

If the closing date passes, we will lose our locked interest rate. My question is, if we decide to back out since the sellers did not fulfill the contract obligations (the repairs were also required in the contract) do we still have to pay bank fees associated with closing? What options do we have. I know that if the date extends beyond closing then we have to pay a fees to keep the interest rate.

Any suggestions? Has anyone been through a similar situation? We are really stressed out, since we have started packing, given our move apt move out notice.

Cooks.

Thank you for reporting this comment. Undo
brickeyee

"My question is, if we decide to back out since the sellers did not fulfill the contract obligations (the repairs were also required in the contract) do we still have to pay bank fees associated with closing?"

That is between you and your lender.

Most likely you are on the hook for the fees, especially if the bank paid them to third parties(like appraisals).

A requirement levied by a lender to make a repair may not actually be part of the contract.
Was it added in with both parties agreement?

    Bookmark   September 15, 2010 at 6:11AM
Thank you for reporting this comment. Undo
cookie_grow

Yes the repairs were added to the contract after home inspection and signed by both parties. After that the bank requested same repairs to be made.

    Bookmark   September 15, 2010 at 7:16AM
Thank you for reporting this comment. Undo
Billl

You contract almost certainly has an "out" if they fail to complete the agreed upon repairs. Beyond that, you'll need to have a lawyer take a look at the contract. That may or may not cost more than the charges in dispute.

"I know that if the date extends beyond closing then we have to pay a fees to keep the interest rate. "

Interest rates have been going down and down. Unless you got an amazing rate locked in, you should have no trouble matching it.

    Bookmark   September 15, 2010 at 7:52AM
Sign Up to comment
More Discussions
Sell Home, Go to Court Or What?
This may be the first time I have posted asking for...
ncrealestateguy
pros/cons of first floor master
I've looked at several newish (1990s or newer) homes...
hairmetal4ever
Home Buyers Please Vote: Would you rather ...
1. A $2,000 kitchen appliance allowance or any stainless...
belfastbound
Considering downsizing Advice desperately needed!
Have you downsized? I could use your input. Desperately...
jcorn1
Panicking - please help
We built our house 2 years ago, but unfortunately we...
Butternut
Sponsored Products
Kichler 340002 12.2 in. Edenvale Universal Glass Bowl - 340002
$72.00 | Hayneedle
USMC Tournament Cornhole Set - SM03
$180.96 | Hayneedle
Boston Warehouse Whale Ice Cream Spade - 63304
$15.99 | Hayneedle
Gas Grill: Weber Summit E-620 Gas Grill
Hayneedle
Weber Ceramic-Coated Pan Set - 6732
$59.99 | Hayneedle
Virtu KS-70072-C-WH Vanity Set in White with Ceramic Countertop
Blue Bath
Performer Grill Cover with Storage Bag - 7151
$39.99 | Hayneedle
US Navy Cornhole Set with Bags - US NAVY RED/ROYAL
$180.96 | Hayneedle
© 2015 Houzz Inc. Houzz® The new way to design your home™