Help! Money Wired, Docs Signed, Seller Short 10k, Closing Today

[StevieAnn Nance]

Today is our closing.  As the property is 3 hours from my residence, I did my closing yesterday: signed all final loan documents, wired my money to Escrow, etc., and we FedEx-ed our documents for 8AM delivery this morning.  I got a call late last night that the seller is 10k short to close. Apparently he took out a second loan for his downpayment; Escrow caught this last night.  The seller & their agent are offering early occupancy, essentially renting the property to us for free for 2 weeks while he finds the money.  Does anyone have experience with this? Is this a terrible idea?  The property is in California is an area appreciating quickly, there is no way a short sale would be approved nor do we want to wait for that option. 

[Samuel Pawlitzki]

@StevieAnn Nance

No way. What if you move in early and he can't come up with the money? I would wait to move-in until the deal is actually completed. 

The real question is, how did title or escrow not catch the 2nd loan until the day before closing? That's unacceptable.