I have a buyer who is trying to close on an REO property that has been on the market for almost 500 days. She made a cash offer with a 7 day home inspection contingency and a 14 day closing. The closing date was supposed to be 10/14/2009. The contract states that if it fails to close because of a buyer delay that the bank will charge the buyer $200 extension fee and $100 per day, as well as charge the buyer's agent $20 per day.
Immediately after contract ratification we attempted to schedule the home inspection. The problem, there was no water in the property and no-one seemed to know how to turn the water on. The bank said the home was on a well, the listing agent said it wasn't but that the public water company claimed that they did not service the property. It took one call on my part to the water company to straighten out that it was indeed public water but that there was a balance and they would not turn the water on until the bank paid the outstanding balance. This took days for the bank and their agent to navigate (did I mention the agent only communicates via email with me?). Finally, on Monday of this week we get word that the water issues had been resolved and we did the home inspection the next day. I called the seller chosen title company and scheduled a closing time for today at 4pm.
Turns out, closing had to be delayed because the closing company has not received the deed from the seller. We are tentatively scheduled for a Monday evening closing.
The asset manager had the nerve to suggest that we need to file an extension for the delay. NO! The buyer is ready and able and quite frankly anxious to close and is certainly not requesting the extension. YOU need the extension. Monday will be almost 4 weeks from the original closing date and the buyer has had no fault whatsoever in the delay. She has her cash in hand and is ready to close at a moment's notice.
Banks are able to charge buyers all kinds of unreasonable fees when they encounter unexpected delays but when the delays are caused by the seller the buyer is just supposed to be patient. It seems to me that there should be reciprocal fees such as a $100 per day reduction in the purchase price or a $100 per day increase in closing cost assistance to the buyer for every day that the seller causes a delay. In addition, the listing agent should be required to pay the buyer's agent $50 per day bonus.
It seems to me that if there were consequences on both sides of the contract the banks and their agents would be a bit more cooperative with these buyers and that everyone would work together to get these transactions completed.
If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery, Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.
Dr. Stacey-Ann Baugh
Century 21 New Millennium
FINALLY! A DOCTOR WHO MAKES HOUSE-CALLS!
Information deemed reliable but not guaranteed!