FRUSTRATED: 6+ Month transaction and more delays from lazy seller

Buying & Selling Real Estate
9yFollow

FRUSTRATED: 6+ Month transaction and more delays from lazy seller

Ryan Donohue
Real Estate Agent · Ridgewood, NJ · Member since 2015 · 114 posts · 43 votes

Hey BP, 

So long story short I'm supposed to close on my first property(2 family house hack in Passaic county NJ) on Friday. I had pushed for the longest time to set a closing date with the seller stating I'd lose my mortgage rate lock(since Dec 2016) and lo' n behold I lost it because we couldn't settle in time. The tenant(unit I'm living in, FHA loan) was given their 60 days and I'm being told they can't vacate the tenant in the NJ state required time. Not only am I pissed from having to pay extra on my mortgage but I had made lots of commitments for moving, renovations, and professionally. Since they signed an addendum that we'd close March 31st and they are breaching that I'd like to rebut with concessions to the magnitude of closing costs. Now...I know this can bring up legal issues and I'm not looking for that here, rather what everyone would do if they were in my situation? Any past experience stories, tips, verbiage, or advice would really be appreciated. I shouldn't have to absorb any recourse from them not being professional landlords, right? It's really been a long and painful transaction, especially being my first.

-Ryan 

0Reply
25 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y

if the tenant has a lease you have to honor it.

you did get a copy of the lease correct during your due diligence your Broker has been helping you correct.. or is this a fsbo?  not really enough info here to comment on whats happening

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    if the tenant has a lease you have to honor it.

    you did get a copy of the lease correct during your due diligence your Broker has been helping you correct.. or is this a fsbo?  not really enough info here to comment on whats happening

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    The delay appears to be due to your financing being contingent on you occupying the property, so the delay appears to me to be from your end. Closing could happen if it was cash or conventional. It seems like the addendum if yoibare unable to close by March 31 could mean that you lose your EMD unless there us something spelled out differently in the addendum.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Ryan Donohue
    OP
    Real Estate Agent · Ridgewood, NJ · Member since 2015 · 114 posts · 43 votes
    9y
    Originally posted by @Jay Hinrichs:

    if the tenant has a lease you have to honor it.

    you did get a copy of the lease correct during your due diligence your Broker has been helping you correct.. or is this a fsbo?  not really enough info here to comment on whats happening

    Hey Jay, thanks for jumping on the post.  The tenant is actually month to month. 

    0Reply
  • Ryan Donohue
    OP
    Real Estate Agent · Ridgewood, NJ · Member since 2015 · 114 posts · 43 votes
    9y

    @Russell Brazil my mortgage is contingent on me occupying but I brought the situation up to my lender and being able to close with a tenant in for a few days is not a problem.  This is just as long as they are moving out.  The biggest problem is that I they just keep prolonging this and not only are my finances taking a hit but also my personal and professional career.  What if I was to leave for a 2 month business trip the day after we close and have a construction crew in the next day to renovate or my lease on my apartment ends that same day?  It's really not my problem that they can't take being a landlord professionally as a business and handle turnover properly.  They tell me 2 days before closing that they're pushing it back again....I don't think so, especially when our addendum states March 31st.  Sorry, I'm just frustrated as you can see... 

    -Ryan 

    0Reply
  • Brandon McLean
    Investor · Knightdale, NC · Member since 2014 · 122 posts · 74 votes
    9y
    If you perceive the seller is delaying, then maybe it would seem they're not very motivated... A big part of this business is finding "motivated sellers." Tattoo that on your wrist. You're looking for people who "need" to sell, "can't wait" to hand you the keys, and are about ready to "just give up." If the sellers aren't saying anything like that, then...
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Ryan Donohue  if tenant is month to month whats the issue?  if seller wont give notice then your right something is up with your seller.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Ryan Donohue
    OP
    Real Estate Agent · Ridgewood, NJ · Member since 2015 · 114 posts · 43 votes
    9y

    @Jay Hinrichs precisely, they are month to month so I see don't see how 60 days is not enough time.  I'm going to keep this forum posted as to what happens. Thanks everyone so far on the advice.  

    0Reply
  • Aaron C.
    Rental Property Investor · Bridgeport, CT · Member since 2019 · 34 posts · 2 votes
    7y

    @Ryan Donohue man I’m going through the exact same thing, curious to find out how this worked for you?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free