Extension of Escrow

What is the name of your state? CA
We have a 30 days escrow due in 2 weeks. All inspections, etc are done satisfactorily, however we expect delay from the lenders side. This is only becuase of the huge volumes of loans they are processing. Our loan is also approved, except for the sheer paperwork the lender has to do.
Meanwhile, sellers have a full-price backup offer (7K more, which is hardly 1.5% higher) and are acting as if they will not extend the closing date due to lender delay.
Sellers agent says his client would "...prefer us to walk, for the extra 7K".

1. If we cannot close on time becuase of lender delay, Do we lose our good faith deposit?

2. My agent says if they do not extend the escrow, we can put a lien on the property which makes the property unmarketable. This should dissuade sellers from giving in to 7K greed and letting us walk for no fault of either party.

What do you think about the above.
We also opted for "binding arbitration" in the purchase contract. In that case, does item 2 above sound valid/ethical to you?

Thanks!

[HomeGuru]

[quote]Originally posted by JavaPoet
[b]What is the name of your state? CA
We have a 30 days escrow due in 2 weeks. All inspections, etc are done satisfactorily, however we expect delay from the lenders side. This is only becuase of the huge volumes of loans they are processing. Our loan is also approved, except for the sheer paperwork the lender has to do.
Meanwhile, sellers have a full-price backup offer (7K more, which is hardly 1.5% higher) and are acting as if they will not extend the closing date due to lender delay.
Sellers agent says his client would "...prefer us to walk, for the extra 7K".

1. If we cannot close on time becuase of lender delay, Do we lose our good faith deposit?

**A: read your contract with respect to default provisions and deposits.
**********
2. My agent says if they do not extend the escrow, we can put a lien on the property which makes the property unmarketable.

**A: your agent is an idiot and full of BS. Is there an automatic unilateral right that the Buyer has to extend closing without written consent of the Seller?
Regardless, the Buyers has no lien rights. Maybe your agent was talking about a lis pendens.
*************

This should dissuade sellers from giving in to 7K greed and letting us walk for no fault of either party.

What do you think about the above.

**A: you agent is not feeding you the correct facts. Have your agent show you the term and conditions in your contract that supports his/her position.
***********


We also opted for "binding arbitration" in the purchase contract. In that case, does item 2 above sound valid/ethical to you?

Thanks!

**A: see above and since you signed agreeing to binding arbitration, there can be no lawsuit filed and therefore no NOP (notice of pendency) or lis pendens filed on title.