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Tuesday, June 13, 2006

House 3: Escrow Update

We were supposed to close escrow today. Actually, the original close date was last Tuesday, but we extended it a week. My agent has called the buyer's agent and has not gotten a response. She also called the buyer's mortgage broker and asked what was going on. She got the usual mortgage broker answer - "Oh, there were some problems that weren't the buyer's fault but they are all cleared up now," etc., etc. My agent then asked if we were going to close tomorrow. He said no, it would probably be next Monday. This is not acceptable. I do not want to hold this property over another weekend and I've already extended the closing date a week.

My agent is putting the property back on the market and is sending the buyer's agent a cure notice to give them three days to close or lose their earnest money.

I am so sick of lenders and/or mortgage brokers waiting until the last minute. They've had 5 weeks to get this loan ready and they haven't done anything.

7 comments:

monarchcrest said...

Wow, this sounds like what happened to me last month on SFH#1. I really hope its a mortgage broker problem and that its not the buyer getting cold feet.

Mitchell said...

Shaun, I've been following your blog and I'm really pulling for you. I hope the buyers are not trying to back-out now.

realestatemadman said...

I think you should allways have a non-fundable deposit clause, in contracts. If they waist your time and money you deserve compansation. You could have sold it to sombody eles it that time period. You have done to much for these people already.

monarchcrest said...

I agree with the above poster. In my current sale contract it says earnest money is non-refundable. The buyers objected but eventually agreed. And I made them come up from $1,000 to $5,000. $1k earnest money does you no good either.

Seattle Eric said...

Shaun - if you're using an agent to list and sell, aren't you using the MLS P&S and other docs? Don't they, by default, stipulate the forfeiture of ernest money after all contingencies have been waived/satisfied?

monarchcrest said...

In AZ there is a standard loan contigency in the contract. I would think that because the buyer couldn't qualify for the loan that you're not entitled to the earnest money.

Shaun said...

Monarchcrest is correct. The new contract that Realtors started using a couple years ago states that failure to qualify for a loan does not constitute a default and that the buyers are entitled to their earnest money back. This same contract also started called for a 3 day Cure Notice when the buyer is in default. Meaning, the buyer now gets three days to correct problems rather than the seller just being able to declare them in default and cancel escrow immediately. The new contract is very pro-buyer.

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