My Home Closing Was Delayed for Months. Here Are All the Problems That Caused

My Dwelling Closing Was Delayed for Months. Right here Are All of the Issues That Precipitated

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On the finish of final yr, I purchased a home. I had been attempting to purchase the home because the center of final yr, however sadly a collection of issues occurred and since the sellers took a very long time getting liens off the property, we did not find yourself closing on the house till mid-December. This was three months after our preliminary anticipated deadline of mid-September.

The delayed closing sophisticated every part. In case you’re shopping for a home and one thing prevents you from closing on time, you possibly can additionally expertise related points. Here is what occurred with my closing.

1. We could not transfer into the house immediately

The obvious downside brought on by the delayed dwelling closing was that we didn’t personal the house on the time we anticipated to. This meant we weren’t capable of transfer into the property. Now, this wasn’t an enormous deal for us as a result of we had one other home to reside in — however when you do not have one other place since you’ve bought your present dwelling or given up your residence lease, this may very well be a main challenge.

Think about having your bins packed, your home bought, and being able to get into your new dwelling — solely to seek out out that the sellers aren’t able to get out. It is easy to see why this may very well be a pricey catastrophe.

2. Our mortgage charge lock expired

There was one other large downside that I did not actually take into consideration till I got here nose to nose with it. I used to be getting a mortgage to purchase the house, and my mortgage was locked in at a reasonably aggressive charge (for the time). Sadly, my mortgage charge lock was solely good for a restricted time, as charge locks often final for 30, 45, or 60 days.

At first, we negotiated with the sellers to pay a payment to increase our charge lock. However as a result of charges have been going up quickly and our closing was delayed for thus lengthy, this quickly grew to become impractical as a result of lender charges to maintain the speed have been including as much as tens of hundreds of {dollars}. So, finally, we needed to let the speed lock expire.

We received fortunate and have been capable of lock in once more when charges dipped at near the speed we might initially been promised by the mortgage lender. However all of the lender charges nonetheless needed to be paid.

The final large challenge was that our possessions have been in storage — and we needed to pay to maintain them there for an additional three months. Since all of our furnishings for the home was in storage, now we have a fairly large unit that prices us over $500 a month — so the delay price an additional $1,500.

This might have been worse if we might needed to pay for an additional momentary place to reside, however it was nonetheless a giant hit to our private funds.

What are your choices in case your closing is delayed?

In our case, we did not have many good choices as a result of we actually needed this home, the sellers weren’t prepared to make too many concessions, and we weren’t prepared to stroll away. We additionally could not actually sue for damages as a result of the sellers owned the home in a restricted legal responsibility firm (LLC) with no different belongings, and there have been so many liens on the home that there wasn’t any cash left over.

Now, this was a singular scenario — however delayed closings aren’t. And when you expertise one, you will have some decisions to make. You could possibly:

  • Negotiate with the sellers to pay as many charges as potential and wait it out till closing. This generally is a good choice when you have sellers prepared to play ball, however we actually did not.
  • Stroll away. If in case you have one other place to reside and do not actually care about getting the home, you possibly can do that. However you’d most likely be out cash for inspections and value determinations, plus you’d have wasted plenty of time. And when you’d already given up your previous place, this may not be sensible.
  • File a lawsuit. You could possibly sue the sellers for particular efficiency, which might require them to comply with by on the contract and shut. This solely works in the event that they can shut (if, for instance, they’re simply delaying as a result of they wish to). We could not make our sellers shut as a result of they needed to take care of the liens first. You could possibly additionally sue for financial damages if the sellers have cash to pay them.

Finally, none of those decisions are nice. So your greatest wager is to work with a actual property agent who helps you do due diligence earlier than you make a proposal to attempt to cut back the possibilities of issues cropping up that result in a delayed closing. We knew we’d have points however needed the home anyway. If that is not your scenario, avoid properties with excellent liens or different issues. In any other case, you possibly can find yourself in my scenario — which wasn’t enjoyable.

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