One option you will most likely have when it comes to dealing with a seller's closing delays is to just allow the seller more time by executing a written addendum to the contract that delays the closing with a new date.
“If all of the buyer's legitimate deadlines have expired and the buyer is considered to be in default of the contract, the seller can elect to keep the earnest money as liquidated damages and agree to cancel the contract,” says Horner. “Or, the seller can elect to sue.”
Simply ask for an extension -- but make sure that the seller signs a statement that he agrees to it. However, remember that the foreclosure sale is set for Wed -- and this may be difficult to pull off.
Failure by one of the parties to perform on the closing date will constitute a material breach of the contract and may result in the forfeiture of the down payment.
When a buyer cannot or does not complete an agreement without cause the buyer will be responsible for making the seller “whole”. This means that the seller is entitled to be put in the same position as the seller would have been had the buyer completed the transaction as scheduled.
There could be title issues that even the seller is unaware of, and this can precipitate legal complications that inevitably delay a closing. Title issues can include liens on the property or unpaid property taxes. There could be unresolved disputes over who owns or inherited the property.
If you have a good reason for missing the closing date, the courts will usually decide in your favor and grant a reasonable postponement, giving the buyer an extra 30 days to complete the transaction.
Unfortunately, there's no limit on the number of times a buyer can ask for an extension on the closing date.
More often than not, purchase contracts will state that the sale will close on or before a specific date unless both parties mutually agree to a change, but some contracts don't allow the buyer or seller to change the closing date.
Can you sue a loan officer if a deal fails to close on time and the seller refuses an extension? You can, but whether a judge would even hear your case is another matter.
3.9% of real estate sales fail after the contract is signed.
There's nothing more frustrating than having a buyer back out at the last second. Even if you're lucky and the house sells quickly and above the asking price after a heated bidding war, many things can go wrong that cause a deal to fall through.
A mortgage contingency usually provides 30 to 60 days for buyers to secure loan approvals — which means that if buyers don't obtain financing within that period, they risk losing their earnest money deposits, and sellers are legally allowed to cancel the contract.
How long it takes to close on a house depends on many variables, including when you can schedule appraisals and inspections and when the lender finishes the underwriting process. Even if you pay cash for a property, there is still a closing process.
Compensation for delayed closings is usually based on actual losses or damages sustained by the aggrieved person in the event of a delay. The damages could be: Additional living expenses like hotel re,nt or storage costs. Other mortgage or interest payments.
And in many cases, a home seller who reneges on a purchase contract can be sued for breach of contract. A judge could order the seller to sign over a deed and complete the sale anyway. “The buyer could sue for damages, but usually, they sue for the property,” Schorr says.
If the seller refuses to close or delays the closing without a valid reason or contractual basis, the buyer may have legal recourse through a lawsuit. Remedies could include specific performance (forcing the transaction to complete) or seeking damages for breach of contract.
The maximum possible extension length is 30-32 inches (75-80 cm). There are some hair extensions that are 40 inches (100 cm) long, but this is super rare since this hair length is considered exclusive and is not suitable for everyone.
How long can a mortgage offer be extended by? The length of a mortgage offer extension will depend on the lender in question, but most will extend it for at least a month, but some give you longer.
If the contract doesn't include a “time is of the essence” clause, a delay in closing doesn't automatically give you the right to cancel the deal. Instead, both parties usually negotiate a new closing date.
To avoid any financing roadblocks or a delayed closing, ensure that there are no major changes with your financial situation from the time you've submitted your loan application to the day of closing, such as buying a new car. With that said, it's recommended to work with a knowledgeable, local mortgage broker.
How Long Does it Take to Close on a House? It is important to note that while average closing times might be 47 days for a purchase and 35 days for a refinance, most loans will actually take between 30 days and 75 days to close.
As you can imagine, it's not uncommon for homebuyers to experience delays related to the various aspects of the closing process, but these delays can be both frustrating and costly. All too often, a closing is delayed because a homebuyer chooses the wrong lender.
A closing may fall through for many reasons, including title-insurance surprises, buyer financing rejections, inspection failures, and lowball appraisals. Even buyer's remorse can sour a deal.