Delayed escrow closing

What is the name of your state? CA

We are in escrow that was to close one week ago. Three days before close of escrow, we found out that we did not qualify for a mortgage loan from one company and so scrambled to get a loan from another company, which we got approved on a loan for.

In the meantime, 7 days have past since the original escrow closing agreement date. The seller's agent originally told us that the seller's home sale is contingent upon their buying another home. But, as it turns out, they already bought another home and close that escrow about 7-10 days ago. The seller now wants us to pay $100 per day fee for everyday that we have passed on the original closing date.

We did not purposely delay the closing date but was caught in the unfortunate circumstance of not qualifying for a loan. Are we obligated to pay the seller fees?

[BrokerRE]

Check to see if you have a financing contingency on your Purchase Agreement. If you do, then you can simply claim that you've been declined for financing, and you are due all of your deposit back.

At that time, the seller will be in shock, and will be much easier to deal with. At that time I would let the seller know that you can possibly get refinanced with another company, but he will have to agree to give you a little more time. The seller's choice will be to let you get the loan from another company, or start all over again, and market his property.

The key to this type of negotiation, is to give the seller the idea that you're willing to walk away, if he doesn't cooperate.

Good Luck

[HomeGuru]

[quote]Originally posted by sluguy99
[b]What is the name of your state? CA

We are in escrow that was to close one week ago. Three days before close of escrow, we found out that we did not qualify for a mortgage loan from one company and so scrambled to get a loan from another company, which we got approved on a loan for.

In the meantime, 7 days have past since the original escrow closing agreement date. The seller's agent originally told us that the seller's home sale is contingent upon their buying another home. But, as it turns out, they already bought another home and close that escrow about 7-10 days ago. The seller now wants us to pay $100 per day fee for everyday that we have passed on the original closing date.

We did not purposely delay the closing date but was caught in the unfortunate circumstance of not qualifying for a loan. Are we obligated to pay the seller fees?

**A: you are not obligated to pay the fees and the Seller may not be obligated to sell you the property. As BrokerRE stated, it is time to negotiate.