Can You Close Over Several Days?
According to our contract, I am supposed to close August 1, 2003.
Investment property.
My first bank (E-loan) cancelled the loan last minute. I got another bank but last minute (July 31, 2003) they tell me they have not had enough time to put all the paperwork together, and need a couple days. I have $7,500 tied up in escrow. Can the seller take my money and not sell me the property?
Can we agree to cancel the purchase?...I did have a clause the deal was contingent upon financing, and I had one bank deny me the loan, after they approved it, too! They thought about it, and decided I just had too many properties financed.
My question is: can I go to closing today, give all cash to the seller, and have the title company keep the title, insurance, etc in escrow until the bank can close and refund me the money, possibly early next week?
Check with the title company/closing agent. Do you have the cash to close the deal yourself?
Prosperous investing,
td
Quote:
On 2003-08-01 11:30, td wrote:
Check with the title company/closing agent. Do you have the cash to close the deal yourself?
Prosperous investing,
td
I can close with cash. But I want to close with bank financing, the rate is better. I do not want to pay for 2 closings. The title company is useless, they are all two busy to talk...you go to voice mail, and the message says they will call you eventually
ask if your title company is willing to close the deal in escrow until you replace the present funding w/ lender's funds.
Davidccrc,
This is all IMHO....
"My first bank (E-loan) cancelled the loan last minute."
Unfortunately, this happends ALL too often!
" I got another bank but last minute (July 31, 2003) they tell me they have not had enough time to put all the paperwork together, and need a couple days."
I think YOU can see THEIR point!
"I have $7,500 tied up in escrow. Can the seller take my money and not sell me the property?"
YES!...BUT, I am sure YOU have an out in YourContract!...Right???
"Can we agree to cancel the purchase?...I did have a clause the deal was contingent upon financing, and I had one bank deny me the loan, after they approved it, too! They thought about it, and decided I just had too many properties financed."
YES!!...but if this REI is a GreatDeal ....WhyBother?
"My question is: can I go to closing today, give all cash to the seller, and have the title company keep the title, insurance, etc in escrow until the bank can close and refund me the money, possibly early next week?"
YES!!!
...SAVE THE DEAL!!!...If YOU think it's WorthTheHassel!
We are ALL in this TO MAKE PROFITS...
....RIGHT?
PMA...MyFellowREI
....as always,
GoodInvesting, Rocky
The seller cancelled the sale, and is saying I have broke the contract by not closing on August 1.
I have an out: my bank could not / would not close the loan, (I have this in writing) and my out was being able to secure bank financing....I have a letter denying me a loan. Is this all I should need to reclaim the money from escrow?
From my experience yes you should get your money back but it may take awhile The title co. has to have the seller permission to release funds. If they say no, you will need legal help
There are two many issues here that depend on what is written in your contract and escrow instructions. One of the two documents should provide guidance and when you can cancel, etc., and if you can get your money back. If the seller is willing to cooperate, don't worry about it, if not, review the documents to determine your options and consider obtaining legal representation.
[addsig]