do sellers have any rights in this market?

[xenocide72]

What is the name of your state (only U.S. law)? PA

I entered into a contract of sale for my property in April and the closing was supposed to be 2 weeks ago, Unfortunately just a a few days before the settlement date the buyers mortgage company requested an appraisal of his rental property (he was borrowing against the equity of the property) plus additional documentation. WTF??? The appraisal has come in great and the documention has been provided by the buyer...but the loan is still in underwriting days later.

So anyway I have now paid 2 weeks additional mortgage, utilities, etc. and there doesn't appear to be anything I can do except walk away from the deal (since he didn't meet the settlement date). However, this doesn't seem like it really benefits anybody since it would probably take months to find another buyer.

The buyer still wants the property and is trying to get the mortgage approved (which does seems imminent, btw), but isn't there a penalty of any type he should incur? Meanwhile I am leaving myself exposed by having a now vacant house sit for 2 weeks (my homeowners would not cover anything if something were to happen to it in this state).What is the name of your state (only U.S. law)?

[xylene]

Delays are normal in mortgage and house sales.

If you are unhappy - walk and or sue.

Your expenses are potential damages

BUT

Having expenses for a house you are trying to sell - that is normal.

Why your house is uninsured is beyond me.

[Zigner]

Originally Posted by xenocide72

...but isn't there a penalty of any type he should incur?

If there is, it would be written in to your existing contract...if you DIDN'T insist on it being written in, then that's YOUR fault.


And, I'd also like to say that your situation is not unique to the current market conditions. It could happen to anybody at any time.

[xenocide72]

Originally Posted by xylene

Delays are normal in mortgage and house sales.

If you are unhappy - walk and or sue.

Your expenses are potential damages

BUT

Having expenses for a house you are trying to sell - that is normal.

Why your house is uninsured is beyond me.

my house is insured through Allstate...however they said if the house were to be vacant (no furniture, etc) then they would no longer cover any damage due to vandalism.

[xenocide72]

Originally Posted by Zigner

If there is, it would be written in to your existing contract...if you DIDN'T insist on it being written in, then that's YOUR fault.


And, I'd also like to say that your situation is not unique to the current market conditions. It could happen to anybody at any time.

so in other words, I should have written in the contract 'any delays in closing..blah blah' will lead to penalties to the buyer'.

Overall, I have to say I have not been real pleased with our agent. This is now the 3rd potential deal on the house. The first buyer walked away at after the home inspection (said it needed too much work), the second lost her job the day after the home inspection, and now this.

[xylene]

Originally Posted by xenocide72

my house is insured through Allstate...however they said if the house were to be vacant (no furniture, etc) then they would no longer cover any damage due to vandalism.

Allstate is NOT the only insurer.

[ecmst12]

Changing insurance when sale will go through any day is kinda silly.

[xenocide72]

My question(s) is now this:

Well Fargo agreed to an original settlement date of May 26th when they gave the the loan commitment to the buyer. However, we have now learned that their underwriting department didn't even look at the loan until 2 days before the closing date (at which point they needed the extra documentation). When talking to the loan officer (yes, we as the sellers now have to talk to the buyer's mortgage company to get answers on this) he said they are really backed up and only have 5 underwriters in that department. How is it that Wells Fargo can agree to take on this business and agree to a closing date and seemingly have no intention of following through with it (due to lack of staffing)? Now there is now set closing date at all! Furthermore 3 weeks have passed since the original settlement date and underwriting could actually still DENY the loan! Of course my real estate agent says that since the sale is contingent on the buyer obtaining the mortgage, if the loan does somehow fall through we don't even get to keep his deposit, although our house has been off the market for almost 2 months because of this! WTF?!

[Zigner]

Originally Posted by xenocide72

My question(s) is now this:

Well Fargo agreed to an original settlement date of May 26th when they gave the the loan commitment to the buyer. However, we have now learned that their underwriting department didn't even look at the loan until 2 days before the closing date (at which point they needed the extra documentation). When talking to the loan officer (yes, we as the sellers now have to talk to the buyer's mortgage company to get answers on this) he said they are really backed up and only have 5 underwriters in that department. How is it that Wells Fargo can agree to take on this business and agree to a closing date and seemingly have no intention of following through with it (due to lack of staffing)? Now there is now set closing date at all! Furthermore 3 weeks have passed since the original settlement date and underwriting could actually still DENY the loan! Of course my real estate agent says that since the sale is contingent on the buyer obtaining the mortgage, if the loan does somehow fall through we don't even get to keep his deposit, although our house has been off the market for almost 2 months because of this! WTF?!

It would have been pretty simple for you to insist on terms to cover these circumstances. I don't see this as being on the buyer, rather, on you for not covering your bases.

[xenocide72]

Should covering my basis include taking into account the fact that banks can pretty much do whatever they want without any accountability?

[Zigner]

Originally Posted by xenocide72

Should covering my basis include taking into account the fact that banks can pretty much do whatever they want without any accountability?

Yes, absolutely! You COULD be collecting additional money for every day beyond the planned closing day.