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contract expires before closing

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cath491

Junior Member
What is the name of your state (only U.S. law)? louisiana

We had a purchase agreement for 30 days, it was about to expire, the loan had not closed yet. We signed an amendment to extend it another 2 weeks, although the mortgage company recommended longer because of being backed up. The mortgage company now says they should be ready to close next week, but no sure day yet. The 2 week extension expires today. The seller acted like they weren't concerned with signing another amendment.

If it expires today and the whole thing is still in the underwriting process, can the seller sell the property to someone else, or is there some way we, as the buyers are protected, since it is so late in the game, with it being with the underwriter and expected to close in a matter of days?

Seller has assured us it would not be sold to anyone else unless financing was not approved, however, as of a week ago, the listings for the property have been removed, which is unusual because we were told that the listings for properties would remain up until after closing. (I don't know if this is common practice everywhere, but before deciding on this property, we were told that other properties we were interested in were under contract...when we asked why were they still listed, then it was explained to us that they don't remove the listings until the sale is final, in case deals fall through.)

Please let me know if any more info is needed to answer my question, thanks.
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? louisiana

We had a purchase agreement for 30 days, it was about to expire, the loan had not closed yet. We signed an amendment to extend it another 2 weeks, although the mortgage company recommended longer because of being backed up. The mortgage company now says they should be ready to close next week, but no sure day yet. The 2 week extension expires today. The seller acted like they weren't concerned with signing another amendment.

If it expires today and the whole thing is still in the underwriting process, can the seller sell the property to someone else, or is there some way we, as the buyers are protected, since it is so late in the game, with it being with the underwriter and expected to close in a matter of days?

Seller has assured us it would not be sold to anyone else unless financing was not approved, however, as of a week ago, the listings for the property have been removed, which is unusual because we were told that the listings for properties would remain up until after closing. (I don't know if this is common practice everywhere, but before deciding on this property, we were told that other properties we were interested in were under contract...when we asked why were they still listed, then it was explained to us that they don't remove the listings until the sale is final, in case deals fall through.)

Please let me know if any more info is needed to answer my question, thanks.
**A: the answer to your question depends upon the exact language in your contract and extension agreement. Where is your Realtor?
 

CraigFL

Member
If it was me, I would get another signed extension. While the seller may not back out, it would give him an excuse if he is no longer under contractual obligation. Your realtor may be more optimistic because they will probably get their commission even if the sale doesn't close to you.
 

PghREA

Senior Member
If it was me, I would get another signed extension. While the seller may not back out, it would give him an excuse if he is no longer under contractual obligation. Your realtor may be more optimistic because they will probably get their commission even if the sale doesn't close to you.
I agree. Apparently there is a doubt in you mind about the Seller possibly selling to someone else when he is no longer under a contract. If I were your Realtor, I'd get another addendum signed.
 

cath491

Junior Member
We got another one signed. I was worried that the seller might be wanting to back out because they acted like they didn't want to get around to meeting up to do another one. So, I panicked...I guess they just didn't think it was a big deal since we are so close to closing...I took that as "uh-oh, they aren't wanting to sign, are they selling it to someone else?" But that was not the case.
Thanks to all for the advice and info...looks like we got it resolved for now.
 

HomeGuru

Senior Member
We got another one signed. I was worried that the seller might be wanting to back out because they acted like they didn't want to get around to meeting up to do another one. So, I panicked...I guess they just didn't think it was a big deal since we are so close to closing...I took that as "uh-oh, they aren't wanting to sign, are they selling it to someone else?" But that was not the case.
Thanks to all for the advice and info...looks like we got it resolved for now.
**A: ok, case closed.
 

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