Bank cannot meet closing date?

[laurie83833]

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

Hello,

We purchased or rather made an offer on a Foreclosed house "Freddie Mac". Our offer was accepted and we signed the contract.

The Bank "Freddie Mac" has not been able to get title cleared and it has been over 3 months now. We keep filing an extension I guess its us as when we get the extension contract from the realtor it is not signed by the bank yet and needs there approval before it is valid. So it is for us to sign and send back first.

Which is weird shouldn't the bank be asking for an extension and not us since it is them who is delaying the closing. We are paying cash for the property so it is not contingent on anything.

We have paid to have the home inspection done, appraisel, sent escrow money in etc. The inital sales contract was dated May 20th. Original closeing was scheduled for July 10th, then bank I guess extended to August 30th.. Last July 29th we were sent an extension from our realtor (which is the same realtor for the bank) for closing to October 1st due to title not being cleared which included a price reduction of $7,000.

Well I guess the Realtor said he has had no luck getting the bank to agree on the price reduction and he said he was still fighting for the reduction. So since it was never agreed to extend to October 31 with price reduction I assume the date of August 30 still applies for scheduled closing. I know for a fact the bank "Freddie Mac" still does not have clear title.

So now today the realtor tells us we get get approval for a time extension and sends us another extension for Oct 1 due to title not being closed but it does not list the reduction of price.

What gives? Why are we the ones submitting a time extension? Shouldn't the bank be sending us one with new terms for us to review and accept if we want? Why is it us submitting one to them for approval all the time? Were not the ones holding up the closing it is the bank.

Since closing is I guess scheduled for August 30, Sunday - obviously the bank is not ready to close as they cannot produce clear title. What happens if we don't sign the extension? Can we get any $$ we have paid on the place returned back to us? Like Escrow and inspector fees, appraisal fees etc. or do we just have to keep being drug along month by month until they are ready to close.

There has been other properties since we put and offer on this place that was in our price range that we surely may have liked to purchase but we have been stuck as this one keeps dragging on and on. Or do we just sign the extension again and wait and get nothing in compensation for the long wait. And then what in 4 weeks I can see another extension coming etc etc. etc.

What ideas does anyone have. We really do like the place but it is going to be in worse shape as time goes on without any upkeep - it already was a fixer-upper in the first place. So for each month that goes by I am sure the value of the property does also.

Just doesn't seem fair. How do I know if the realtor even submitted the extension with the price reduction in the first place? I never received anything back saying denied/rejected or anything.

What are our options at this point? What is the name of your state (only U.S. law)?

 

[Tallrat]

Since closing is I guess scheduled for August 30, Sunday - obviously the bank is not ready to close as they cannot produce clear title. What happens if we don't sign the extension? Can we get any $$ we have paid on the place returned back to us? Like Escrow and inspector fees, appraisal fees etc. or do we just have to keep being drug along month by month until they are ready to close.

Ask your Realtor. Buying a home right now even with great credit and from the owner is real hard right now. They have implemented so much crap since the financial housing scandals it has been very slow going. At least in my state you are lucky to have gotten this far buying a forclosure. Usually the banks sit on them.

 

[laurie83833]

I guess I can ask him the realtor. Not sure if I will get an upfront answer since he is the banks realtor and our realtor so he is being dual.

Just makes me mad on how they can even list a house for sale - you make a cash offer (for the full asking price) the foreclosure bank accepts your offer, removes the house off the listings as for sale etc. and then they never had clear title in the first place to even sell it.

Meanwhile you see other properties that could even a better deal that this house and you can't do anything because you are under contract with this one stringing you along for months.