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Loan approval beats offer deadline / closing meeting just a formality?

Daughter job transfer to Ogden. Couple selling their home in Syracuse moving to Logan, Utah for job. Terms of offer was 4,000 earnest money. Daughter could move in and pay rent to owners while loan process proceeded. Closing was scheduled for late December. Daughter had to jump through many hoops to get the loan. Loan approved before deadline but closing will be after deadline. Owner informed my daughter he is moving back because terms of agreement were not met. He also is going to keep 3,000 because she defaulted and wants her out by December 28. Their has to be some legal recourse here. I am angry because of want she went through to get loan approval. Give her one week to get out at Christmas. What are the legal options here?
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December 19 2013 - Syracuse
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Profile picture for wetdawgs
Four days have passed, what happened?

A closing meeting is not just a matter of formality, it is when the seller gets their money.  Thus, that date is extremely important to the seller.

It is kind of tough to have a seller to hold the buyer to performance the second described in the contract, but it does happen and the seller has that right.    I shudder when I hear of someone moving in before closing.  
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December 24 2013

This sounds like a matter of convenience for the seller.  If I had to guess, I'd say the seller's deal to move to Logan fell through and when the opportunity to wiggle out of the contract presented itself, the seller jumped at the opportunity to not have to sell their house.  More often than not, seller's are motivated to sell, and going a little past the original purchase deadline is allowed. 

In any case, your daughter needs to work with a lender who can meet or exceed expectations.  We close loans in 15 days. 

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December 24 2013
Discuss the contract with your Real Estate Licensee.  If not going the direction you would like, contact an attorney to speak about other options and if there are any.  
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December 20 2013
As Marjie mentioned, getting in contact with a real estate attorney right away would be my recommendation.  What a terrible scenario.  Hope it works out!
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December 20 2013
Wow, what a Christmas disaster. Sorry to hear of your daughter's trouble. Pre-Closing Occupancy is something I always advise my clients against because of the many possible bad scenarios. This one is heart-breaking to hear. 

Has your daughter spoken with her real estate agent? I know that I work closely with the lenders involved in my buyer client transactions and we have always managed to get to Closing in time. If they can get the Closing done by the date and time specified in the contract, perhaps it can still work out. If they cannot, then it is possible that they will be out of contract and, if the contract stipulates so, the EMD may be in jeopardy. Please have your daughter speak with her agent immediately to see what is fact and what is not. If necessary, she may need to consult with a real estate attorney. 

Best wishes for a harmonious outcome. 
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December 19 2013
If the loan has been approved, the lender should be able to perform to close by the end of December, especially since it is only December 19th now - with 6 or 7 business days left in the month.  With my lenders, if the loan is approved, they close within 3 days of the full loan approval.  I don't see what the delay is all about. 

I recommend she look at her contract in detail - if her financing contingency is not waived, she should be able to back out of the deal and retain her earnest money deposit.  If she waived her financing contingency or agreed to release $3,000 of the $4,000 earnest money to the seller for the seller agreeing to let her move in early, then she is likely out of luck.  At this point, she should sit down with her realtor (hopefully she had her own representation and not just the listing agent working with her too) and look at the details of the contract to get her earnest money back.  Her lender should care that he/she is, by not closing the deal on time, causing your daughter to loose her earnest money deposit and your daughter should beg and plead to get them to close it on time. 

Not being fully familiar with the deal, she also could sue for specific performance, forcing the seller to sell her the home, but she would need to be able to close on time, not after the closing deadline. 

Now also would be a good time to speak with an experienced real estate attorney. 

Typically I recommend my clients not let buyers move in prior to closing, especially if they are still getting approved for a loan.  Also, I prepare a timeline chart for my buyer and seller clients to follow with all critical dates outlined, so they do know what to expect and do, when.  In real estate, time is of the essence and buyer and seller both need to perform in a timely manner.
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December 19 2013
 
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Loan approval beats offer deadline / closing meeting just a formality?
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December 24 2013 | 6 answers
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