Closing Question: Close Date Postponement

[drawgirl]

My husband and I have had a number of ups and downs with trying to buy our first house - and now that we are so close, it seems like this is yet another down.

We were supposed to close on the 15th and, due to the loan officer still needing to get more paperwork (they called late on the evening of the 14th), we had the close date postponed until today, the 21st. When we did this, our agent brought over some extra paperwork for us to sign saying that we still were going to close, but a bit later.

Now the 21st has come and gone and the people at the bank still need a few more days (they think Friday). But we've not heard from our agent nor signed any more paperwork asking for a closing date extension and as far as I know today is still our official close date.

My question is: what happens now? Are we still in contract for the house? Is this going to hurt us in some way with finally getting the keys to this place?

Thanks in advance for any help anyone can give!

[Mitch]

Your Agent should be on top of this. If your extension said you were to close on the 21st and you didn't, you need to sign a new extension. I would contact your Agent asap because as of now you are out of contract. That's based on the info you gave above.

[RJO Salt Lake]

You may not be out of contract--it depends on how the real estate contract for the purchase of your home is worded. But if you miss a deadline, you are probably in default.

When you are in default, the other party has the option of ending the contract and collecting liquidated damages (usually your earnest money deposit), or the option to continue with the contract and ultimately close the transaction whenever your bank is finally ready.

In your situation, if you are in default, you have virtually no control over the transaction any more--it is totally in the hands of the seller. Your best bet is to get in contact with your agent and get an extension signed by both you and the seller immediately. Everyone wants this deal to close--it would be a shame if it fell apart because your agent lost track of the deadlines.

[Arizona Real Estate]

Everyone here is correct. If you don't have a signed agreement to extend the close of escrow then you don't have a contract. When dealing with banks, short sales, foreclosures these are the kind of stories we hear everyday. The best of luck to you.

[jsdomino]

Sounds like you are buying an REO Home. If this is correct, this happens a lot. It does not make it right, but it happens.

Your agent should be sending an addendum to the Seller (sellers agent) changing the closing date (due to lender or Seller delays). Even if the Seller does not respond, at least you will have proof that you are not in breach and that you are trying to close.

It may not speed up the process, but all you can do is make sure your agent follows all the rules and keeps the seller moving.

The deal will probably go through, but in case it doesn't you want to be sure you get your earnest money back.

[maryd]

I would call your agents broker as well as the title company handling your transaction

[jsdomino]

I don't want to Hi-Jack this thread, but...

If I was Drawgirl's agent. I would be in contact with the Seller's agent, the title company and especially my CLIENT on a daily basis (if not more often).

Drawgirl, your agent should be protecting you, (and in turn protecting his/her commission).

[johndale]

A good agent should give you real protection and proper info in every transaction or for safety measures like this.

[jsdomino]

Drawgirl, did your property ever close?

[lylej]

Joseph is right on. I would like to know too if the deal closed.