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Updated over 4 years ago,
Leverage against Bank or Title Company?
Hello
I have a SFH foreclosure that I've had under contract since March 31 this year. Original closing was scheduled for April 30, but the title company has 3 times now extended closing. First it was they were "working on a title issue, and also waiting on a deed to transfer title into the seller's name." Two weeks later (more than 6 weeks after going under contract) it was they were "waiting on the executed deed and power of attorney from the seller" and "still pending the formal letter of indemnity that we need to clear any title issues." Most recently (for the third delay) it was they were still waiting on their underwriters to approve and provide the letter of indemnity.
My question is whether this scenario gives me any leverage against the bank or title company to lower my overall costs on this deal? This isn't a home run BRRRR (I'll likely have to leave 5-8% of a $105k ARV in the deal), but it's in a good area that will rent consistently to generally good tenants and likely experience above-average appreciation over the years. I'm not sitting on holding costs with private money, but have missed my best window to rent for the upcoming year (property is blocks away from a university hospital with many students) and am experiencing some opportunity cost having to keep my money waiting on this deal instead of actually moving forward with another. I contacted the bank and requested a 5% price reduction but they told me to take it up with the title company. I can't imagine the title company is going to offer any sort of meaningful discount.
Does anyone have experience with a similar delayed closing? Aside from walking and pursuing my earnest money, is there anything else I can get out of the bank or title company to make this waiting worth it?
Thanks - Will