Bank wants 5 months to close?

Question

Hi all!

I am a new member and looking to buy my first property. I made an offer on a bank owned property and they countered and I accepted this offer on 5/24/15. The closing date on the agreement was 7/27/15. Two days later their agent told mine that the closing date would need to be  pushed back until 10/1/15! The property is currently vacant. I am in my 10 day inspection period currently. Any advice on how to handle this? It causes problems because I can't lock in my mortgage rate for more then 60 days, also I'm renting month to month right now. Thanks for any advice!

Jordan

Wayne Brooks · Answer

This means they likely have some title problem, probably related to their foreclosure process, which needs to be corrected (maybe a re-foreclosure wanting 5 mo.s), and they Think they can correct it in 5 mo.s.  Certainly a red flag with potential for further delays.  If you think it's a great deal and can wait, go ahead.  But expect further delays.

Bob B. · Answer

@Jordan Good

If you let them extend the closing then they should allow you to re-inspect the property within several days of closing to make sure the property is in the same condition it was in when you just inspected it. Also have them reimburse you for the inspection,

Robert Leonard · Answer

If I were in your shoes @Jordan Good, and I really wanted the property, I would counteroffer at a price that would make it worth waiting for.  Otherwise, I would drop the uncertainty and keep looking.

Jordan Good · Answer

Thank you all for the feedback! I am trying to negotiate some compensation with the bank.

Ron S. · Answer

@ Mark, what is it that makes you think the buyer can bypass the bank?

As the OP stated, it's, "Bank Owned" so your advice may be just a bit flawed here as the seller IS the bank.

Billy Runyan · Answer

They are trying to sell something they do not have clear tile on, at least that what it sounds like to me.  I would look closely at your agreement and suggest they act in accordance or you should demand some level of restitution for the problems they have created.  BEST LUCK!

Mark Brogan · Answer

@Jordan Good

if im in your market i would market directly to sellers since the market in you area is very hot i would tell that bank to take a hike

Bank wants 5 months to close?

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