Chapter 13 Bankruptcy prior to Closing - What to do?

[Fotios Filacouris]

Hello everyone,

I am in the process of purchasing a home in Nassau County, NY (Long Island). This is my second home and have found a pretty good deal on Colonial with relatively low taxes (which is harder than it sounds). 

Yesterday we were given the clear to close, within the scope of 10 minutes, the lawyers informed me that the seller filed for Chapter 13 bankruptcy. This has now put a stop to closing proceedings and we will need to wait for written approval from Bankruptcy court prior to closing. The sellers attorney has mentioned we should get a response within the next two months but I am dubious as to this timeline. This has major implications on my rate lock for my mortgage, as well as some other financial impacts.

Questions:

1.) Has anyone ever encountered any similar situation in the past? What did you do?

2.) Are there any concessions I should look for including in the contract to incentivize me to hang on and wait?

3.) Am I crazy to wait for this?

Any help is much appreciated, love the community! Thanks.