Buyer in Default --Should I can'x contract? - Posted by Robby C

Posted by MO on March 24, 2006 at 15:11:10:

Maybe you can ask for a copy of the lenders most recent underwriting decision. This may give you some clues as to what the hold up is.

Buyer in Default --Should I can’x contract? - Posted by Robby C

Posted by Robby C on March 24, 2006 at 09:27:29:


Original close date was 10 March. Extended until 17 March. Lender is causing problems for buyer. Buyer is “strong” and owns condo in the same building.

We went all the way to the day before close (16 Mar) and the lender started to play games, so I am told.

No second extension has been provided.

They are in default.

Should I canx on this guy if they don’t produce either another extension or close?

Have been told not to go after the deposit as it may tie the property up in a dispute.

What do you think? Am I getting shagged?

Thanks for any advice,

Robby C

Re: Buyer in Default --Should I can’x contract? - Posted by Elizabeth NJ

Posted by Elizabeth NJ on March 25, 2006 at 04:11:05:

First, your atty, if you have one, should serve the buyer with a “time of the essence” letter which gives the buyer 10 days to get the deal to the table.

I’m thinking that your buyer is playing you. Is it possible that the buyer is trying to flip the property and is stalling for more time to find a buyer? Make sure your sales contracts say “This contract may not be assigned” to avoid that possibility.

Get an atty involved to do the letter writing and follow thru, including communicating directly with the lender on your behalf. Your atty’s fee will be well worth it. If you don’t know a r/e atty, call a local REI club in your area and ask someone to make a recommendation.

Good luck.