Buyers' failed to "close" on Monday

[GON]

I have a very hard to sell home that was on the market, and we received and accepted an offer. Closing was Monday 25 JUL 2022.

The Buyers were not able to close. The Buyers did not complete the loan requirements, the lender failed to order an appraisal, and the Buyers' attorney failed to provide proper notifications.

My Broker now says the Buyers are no longer able to "get out of the deal" because they are in default. If they can't close, we would keep their earnest money of $5k. The Buyers' are being charged my daily interest charge on my loan of $17 per day.

I am simply hoping the Buyers can get their act together. If there is one party, I think truly dropped the ball it is the mortgage broker. He should have been on the mortgage issues weeks ago.

 

[CKN]

For whatever reason(s) the buyers are no longer motivated to buy the property or are unable to do so. The mortgage broker relies on the buyer for certain documents (wage stubs, bank statements, or year end statements,etc.) or information to obtain those documents. They had had PLENTY of time. Doesn't matter if they are contractual obligated to buy the property. If they can't or won't there are no options other than to relist.

The bank will not order the appraisal until they get certain information from the buyers broker.

Good luck!

 

[walterjay]

I would keep the 5K. Sorry for all the problems selling this property.

 

[Eddie]

You are owed the money so keep it. It may teach a lesson to prospective buyers. Ed

 

[CarLuver]

housing market is softening. they may have thought $5k to get out of the deal was worth it . i would keep the money with no issues

 

[SteveSRT8]

been to many closings, they fail to happen for a variety of reasons.

Your best bet is to try and work something out with your alleged buyer...

 

[tbm5690]

What a pain. Good communication and reliability seem to be lacking traits of many.

 

[dkryan]

been to many closings, they fail to happen for a variety of reasons.

Your best bet is to try and work something out with your alleged buyer...

GON:

The only reason I would try and work something out with this buyer is for you to be able to be rid of this house once and for all.

Contact them and ask if they intend to go through with the purchase. No “he said/she said,” or “it’s the mortgage broker’s fault,” etc.

A simple “do you intend to move forward with the closing in the next xx days?”

If not, keep the $5k and re-list it. Again.

 

[JustinH]

keep the five grand and sell it again. Good for you.

 

[Urshurak776]

Keep the 5K and put it towards the car!

 

[BMWTurboDzl]

I have a very hard to sell home that was on the market, and we received and accepted an offer. Closing was Monday 25 JUL 2022.

The Buyers were not able to close. The Buyers did not complete the loan requirements, the lender failed to order an appraisal, and the Buyers' attorney failed to provide proper notifications.

My Broker now says the Buyers are no longer able to "get out of the deal" because they are in default. If they can't close, we would keep their earnest money of $5k. The Buyers' are being charged my daily interest charge on my loan of $17 per day.

I am simply hoping the Buyers can get their act together. If there is one party, I think truly dropped the ball it is the mortgage broker. He should have been on the mortgage issues weeks ago.

This makes no sense. Something else was going on with your buyers.

 

[BMWTurboDzl]

You are owed the money so keep it. It may teach a lesson to prospective buyers. Ed

Please. Sh!t happens like job loss.

 

[wpod]

I would keep the 5K. Sorry for all the problems selling this property.

I would keep the money and move on.

 

[99Saturn]

Just curious, was the failure to notify what has caused them to be in default or actually not being able to close?

When we bought our home 10 plus years ago the closing was contingent on getting financing which IIRC was a standard clause used around here. There was a bit and back and forth at the time because I remember the original closing date suggested by the seller being aggressive versus what the bank quoted us as a timeline.

 

[PandaBear]

5k is cheap to breakup if the buyer thinks the price is dropping and they can find a better deal. You having to list the home again for a potential lower price would justify the 5k difference.

This is why, sometimes sellers pick a cash buyer or a buyer with no contingency and high down payment amount, to avoid falling through and getting stuck with a house and they cannot move to another house.

 

[blufeb95]

Please. Sh!t happens like job loss.

Or the Fed does several large rate hikes between when you were pre-approved and when you're finalizing the loan for the purchase and you are no longer able to qualify for the loan based on the higher payment at the higher rates.

 

[The Critic]

Or the Fed does several large rate hikes between when you were pre-approved and when you're finalizing the loan for the purchase and you are no longer able to qualify for the loan based on the higher payment at the higher rates.

That is happening a lot around here, especially for offers that were pretty weak to begin with.

What were the financials behind the offer? Was it a solid offer? I think more details are needed here.

 

[MNgopher]

Agree with many of the sentiments above. An honest discussion needs to occur - do they intend to perform or is it better for all parties to walk and you keep the 5k, and list the property again ASAP.

Many reasons why deals fall apart - but the lack of any real communication between multiple parties here appears to be a red flag.

 

[CKN]

This makes no sense. Something else was going on with your buyers.

It makes plenty of sense. If you don't want to close on a property-you don't provide the info to move forward.

 

[Number_35]

Rats! I hope you are able to sell the house soon.