Closing on Monday 6/30/08 but the seller has no place to go.

jms493 · Joined: 25 Jun 2008 Posts: 4

........So it has been 75 days since accepted offer and finally we are closing. The buyer has not closed on their new home yet......My lawyer told me they are allowed to stay in the house for 30 days after proposed closing date (june 25th). It is a law. So they can stay until july 25th

Now what the HELL???? I have never heard of this crap.......so I will be paying a mortgage and have people living in my home for free..........this makes no sense at all. Anyone in this forum ever hear of this crap.

or I could not close and pay penalties on rate extensions........but who knows how long it will take them to close.

:evil:

waris · Joined: 24 Jun 2008 Posts: 4

I am not an expert but if you are closing and the sellers are still not leaving you will be compensated and you need to be talking to your attorney as that is why people hire a RE attorney. we were in a smimilar situation but only a few days and told our realtor he said your lawyer should take care of that and not to worry.

jms493 · Joined: 25 Jun 2008 Posts: 4

I am having trouble grasping the idea that they are allowed to live rent free when the home will be signed over to me.........I dont get it

m2c · Joined: 03 Aug 2005 Posts: 743

Usually possession date is specifically stated in contract. Around here 15 to 30 days is typical. In some states 0 days (immediate) is the norm. The July date your attorney mentioned could be the “practical” date if you filed an eviction – 15 days for service and 15 days for execution. I ask your attorney for a state law reference so you can look it up on the Internet.

I’d keep pressing. You might speak with your attorney on backing out of the deal for failure to perform and tell the sellers you want a new contract at a LOWER sales price. Sellers don’t want to move into temporary quarters so you might be able to negotiate a per diem rental rate that keeps both parties happy.

waris · Joined: 24 Jun 2008 Posts: 4

jms493 wrote: I am having trouble grasping the idea that they are allowed to live rent free when the home will be signed over to me.........I dont get it

they wont be stayig rent free..your lawyer should be able to collect the rent for however long they stay

jms493 · Joined: 25 Jun 2008 Posts: 4

Well under my concession I am allowing them to stay in the house for about 25 days to allow me to close early. They are helping me by closing early.....and under law they dont have to. So they help me and in turn I help them.

I am understanding it now. I am still pissed that I was not told about them needing a house. Also I gave them 75 days to find one and close. Closings do not take that long. If my contract had a proposed closing date of June 1st then I would be in much better shape...and I can force them to close Jul 1. But under law I cannot force them to close in under 30 days from proposed date.

Sux........but it is not the end of the world.....there are greater things to worry about.

m2c · Joined: 03 Aug 2005 Posts: 743

You didn’t mention what type of financing you were using. If it is a FHA loan, bear in the mind the owner occupancy requirement in 4155.1:

1-2: PRINCIPAL RESIDENCES (10/03)
A principal residence is a property that will be occupied by the borrower for the majority of the calendar year. At least one borrower must occupy the property and sign the security instrument and the mortgage note for the property to be considered owner-occupied. Our security instruments require a borrower to establish bona fide occupancy in the home as the borrower's principal residence within 60 days after signing the security instrument with continued occupancy for at least one year.

Possible 75 days of rental is pushing it for conventional. Clear with lender before the fact. I’ve done these before where the house sold very early in the listing agreement period. What you’re doing is perfectly logical but the current environment is to assume fraud lurks under every rock.

jms493 · Joined: 25 Jun 2008 Posts: 4

it is a conventional 30 year fixed rate loan.

Gathering all the information for closing took unusually long(75 days)....but i didnt care that much as I am living for free right now. I dont know what could happen if everything ran smoothly and tried to close at end of may.

I thought about killing the whole deal and letting them put the condo back on the market.......go back and offer them 15g's less. They would be forced to sell at that point b/c they cant afford to hold 2 mortgages.