The buyer asks for an extension when applying to another bank. What can the seller do? –Silicon Valley

Q: I was planning to end the sale of my home a week ago. Buyers are late in taking out loans. In fact, we were all waiting for the buyer’s loan documents to be sent to escrow. Instead, the buyer’s loan officer called our listed agent and asked if the homebuyer or that agent had contacted us. This sent a shock wave to our side of the transaction. We had 6 other ready, ambitious and talented buyers ready to buy our home.

For the first time, it turned out that the homebuyer was uploading documents to the loan officer. Unfortunately, they also uploaded our seller’s disclosure and one or two inspection reports. As a result, the buyer’s bank underwriter insisted on reviewing all other reports and inspections referenced in the seller’s survey. Looking at termite, property, roof and chimney inspection reports, bank underwriters and their supervisors demanded that all repairs be done before the escrow was completed.

Meanwhile, the buyer is applying for a mortgage at another bank. We have already approved an extension of 7 days. Homebuyers are currently requesting a 15-day extension of sales. What do other sellers do if the situation requires an additional 3 week escrow period?

A: Make sure you are in contact with a real estate lawyer. In the case of a full-fledged deposit dispute, he or she may be needed. Real estate lawyers will give you the right advice to protect your interests.

Conversely, listed agents can negotiate an extension that includes buyers paying principal, interest, taxes, insurance and utilities every day past the original deadline.

Some sellers and listed agents also negotiated the daily costs of the provisional settlement while waiting for their home sales revenue. You have the power of trading. Please use it wisely.

Pat Kapowich, a member of the National Association of Realtors, also shares a proven consumer protection strategy for homebuyers and home sellers. When Contact him at 408-245-7700. DRE # 00979413 The buyer asks for an extension when applying to another bank. What can the seller do? –Silicon Valley

Back to top button