In this scenario, if you're still hoping to go through with the sale, you can give the buyer one last chance to get their things in order and grant an extension that includes a time of the essence clause. And if your buyer continues to ask for extension after extension, your patience may reach the end of its rope. Unfortunately, there's no limit on the number of times a buyer can ask for an extension on the closing date. Typically, the per diem penalty adds up to one-thirtieth of your monthly housing expenses or you can ask the buyer for the total amount in interest you would have earned on the sale if the closing had happened on time. Payments the seller still needs to make as a result of the postponed date. A per diem penalty is a fee charged to the buyer for both the inconvenience of delaying the closing and to help cover the additional mortgage, tax, and insurance By extending the closing date you'll be saving yourself the hassle of putting your home back on the market, finding a new buyer, and going throughĪnother option is to grant the buyer an extension but with the contingency of a per diem penalty. While the entire situation is frustrating, generally it's to your advantage to keep the sale alive. Your real estate agent can negotiate a new closing date that generally will add an additional 10 to 30 days to the closing date, giving the buyer more time One action you can take is relatively simple: grant the buyer an extension, no strings attached.
No matter the reason, you'll want to use your best judgment on which action will give you They need the sale to go through before they have enough funds to purchase your home.
#Seller defaults closing date verification
There's a lot of verification processes that happen in the course of loan approval that can cause delays, from underwriters falling behind to the home inspection revealing major issues that stalls lender approval.ĭelays can also be a result of the buyer's home not selling on time. Needs more time is due to an honest issue with their lender in receiving loan approval. Rather, the main reason a buyer typically Most of the time, the buyer doesn't have nefarious reasons for wanting to extend the closing date.
Why the Buyer Would Want to Extend the Closing Date
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