Can't secure a mortgage!?!?

[neelkamalll1979]

This is my first rant however this is my favorite section to read.

We just sold our house on May 4th, the completion date is June 28, and the possession date is June 30. Today, June 26, we were suppose to sign the papers however, yesterday I got a call from the lawyer saying the appointment had to be cancelled since the buyer has not secured a mortgage. Insert expletive. In total shock.

I called the Realtor and he has given me 3 different stories. Plus, today they had the audacity to come to the house and take a tour with their extended family. They even looked at the basement suite rental on the 25th and announced that they were the new landlords to the tenants.

I talked to our Lawyer today and he has said we just have to wait it out until 5pm June 28. At 5:01pm their office is going to send off a letter to the Buyer's Lawyer if their paperwork is not in. This is the longest wait ever.

How is it that they have over a month and a half to get their mortgage and they wait till the very last days??? My family has already moved out and I have an order to cut all utilities and insurance. We will have to pay the mortgage on the house plus rent at our new places until this is sorted out. Not to mention the cost of the movers, junk removal guys, and the rent deposits for the new places. So much money is being wasted.

Has this ever happened to anyone else? What was the outcome? I am so stressed out right now.

[HungerMoney.Org]

That's terrible! Sorry to hear that these people are flip-flopping like teens at the beach. What a pain in the keister!!!

[momgoneawol]

Wow talk about cutting it close. When we were selling our house, we had something similiar happen but no where's as bad. Company came in that wanted to buy our place for group home. (ideally situated, water on one side of house, septic on other, bungalow so no stairs.) Wanted it right away so we had only a couple of weeks to get out. Rented storage locker, moved out most of our stuff. Found new house and could stay with family between moving dates. Just about to clear eveything else out and get call to say it won't be going through, something about our well. We paid out of pocket for home inspection on our place, as we wanted to know what buyers may find. Home inspection on new place. Storage fees for all the stuff we moved out of our house in the time it was on the market. Home appraisal on our property so we could ask the correct amount for quick sale. Lots of other things. House we were buying since we couldn't confirm our sale sold to someone else. (couple was a bit different and told their lawyer it was all our fault, when we went to pick up our deposit from his office he was surprised to hear all we had done to keep the sale. ) I'm pretty sure they wanted out of our contract to sell for more money. I HATE house selling. Hope it goes better for you in the future.

[ninna]

Your purchasers may have a bad credit history--in which case they may be using a private lender or a trust company--and if that's the case, they will have plenty of hoops to jump through in order to get approved for the mortgage--not the least of which would be clearing up any bad debts (judgments, liens on their previous property). Or, if they are first time buyers without any credit history whatsoever, they would have a tonne of hoops to jump through as well because they don't have established credit.

In my experience, deal closings are stressful and they always feel like last minute, nail biting sporting events. (hehe. Paranoid me wonders if the lawyers don't "set it up" that way in order to justify their monstrous legal fees with a "see how we saved you in the end?" type attitude. That's paranoid, cynical, skeptical me, though. )

I know this sounds hard and counter intuitive--but sit tight. The 28th will come one way or another and the deal will close--or it won't--and there isn't anything you can do about it now. You don't have the control over this one anymore so worrying about it will do nothing but keep you awake at night and make you feel grouchy. It's in the lawyer's hands. Sit tight, put your feet up, have a glass of wine, do your best to relax and hope for the best!

[DianneS]

I am hoping you took a deposit from the purchaser when both parties signed the purchase agree. mos realtors would recommend this. if they truly can't close on the 28th they would forfeit the deposit and that would at least cover some mortgage payments while you re list. our neighbors were in a similar situation a few years ago and the deal did close, however it was a few days late and it screwed up. whole chain of sellers and buyers. Way too much stress... hope it all settles tomorrow

[scouponer]

If the deal falls through, I believe you you have legal recourse as they failed to uphold their end of the deal. I think that you can sue them for the cost of carrying the house until a new deal is finalized and if you have to sell it for less, they are responsible to make up the difference. i would ask your lawyer if things don't work out. Worth a try anyways.

I hope that the deal goes through and you don't have to deal with any of the hassles!

[Girlyone123]

I had a delay in closing last minute on my first house sale. After much "panic" and stress we finally firmed up an alternate closing day about 8 days later and I charged them a "fee" for every day that they were late. Basically when they are the ones breaking or altering the original contract I had the right to set out my conditions. I basically made them cover my cost of living during those 8 days, including the interest I was paying on my line of credit because the deposit on my new house had to sit on my line of credit because of their delay.

It all worked out in the end and hopefully yours does too. I know it's hard and anyone would be stressed out in a time like this but as Ninna said there isn't anything you can do about it now. Just try to relax!

[MillieH]

Ugggh all that stress on top of moving.. I hope it all works out

[neelkamalll1979]

Now they want to extend another 8 days. Going to see the lawyer early tomorrow to see what he says.

[Ciel]

OP, take Girlyone123's experience and apply it to your own. No free ride for delaying the closing and basically being dramatic without showing and placing the money.

At this time, I'd be very curious if they had other homeowners "waiting" for closing too. Must be some kind of game to them. Are real estate agents on both sides (yours and theirs) involved too?

If I was the tenant when that family came for viewing, I'd have let the landlord know exactly what I thought of it all and gotten out.

[Insane]

Someone I know is going through something like this. Had a deal, deposit done with restrictions on the deal being lifted on a certain date. 2 days before restrictions to be lifted, their real estate agent told them it was a go. So they made an offer on a place where they were moving too. Sure enough, they couldn't get a mortgage and they backed out at the 11th hour. Because getting a mortgage was one of their conditions, my friend doesn't get the deposit. They had to back out of the deal they made in the other town. It's a mess.

Hope it all works out.

[Darth Penguin]

When we bought our home, being on a Works Visa, we were illegible for a mortage and had to wait to liquidate our funds from the UK. Even though we had given the bank enough time ( 2 months!), it still cleared the day before we were closing and our Cdn bank wasn't overly keen on writing out a Banker's Draft for that amount of money.

I hope you get everything sorted out this time.

[neelkamalll1979]

So we gave the buyers an extension. Completion was suppose to be July 8 and possession on July 9. Guess what? The buyers needed to add some one to the title, so the papers were not in on time. They need a one day extension. OK we give it to them. Possession and Closing are going to be on the same day, July 9. I get a call from our lawyer, all the funds are not accounted for and the buyers want to use the same lawyer we are using. OK. So now closing is going to be Monday July 15.

I also need to mention we have been to the lawyer's office countless times signing this paper and that paper. Signed the extension the day of Closing. We had an appointment at 11am was cancelled because papers were not in on time. Then rescheduled to 130pm had to wait 45 minutes for the lawyer to be free. Were called back 1 hour later to sign another paper. Next day, there is another paper to sign. Had to drive to my brother's work to get him to sign it and drive back to the lawyer's office.

I hope this all makes sense. I am putting off my own vacation because of this. We were suppose to leave on Sunday. Just a waste of time.

[kk008]

Sounds it will work out in the end.....sounds like the other party is making an effort to get this deal done though with having to go back and forth with the lawyers and paper signing. So here's to July 15th is FREEDOM MONDAY! Ours will be July 12th....FREEDOM FRIDAY! (It took 7 month's being on the market but with this latest offer/sale from open to close, done in 11 days!.....our house was empty already so it was smooth sailing :0)

[super807]

Wow, this must feel so stressful right now. Sorry to hear about needing to postpone vacation because of this. Hopefully you will be able to take vacation a little later. Try to take a deep breath and think how good it will all feel when it is over, and how much you will enjoy vacation because it is done.

Good luck, I hope everything works out well.