Should I extend escrow till I have a buyer? - Posted by Nicole_AZ

Posted by Stacy (AZ) on January 19, 2000 at 16:38:58:

Given the facts, I would allow for one extension, to Feb 28.

Good luck, sounds like a winner.


Should I extend escrow till I have a buyer? - Posted by Nicole_AZ

Posted by Nicole_AZ on January 19, 2000 at 15:45:46:

I currently have a property under contract with the close of escrow being February 11. I bought the property for $30K below retail and plan to flip it for retail as NO work needs to be done and the seller just wants to find a smaller place. The contract allows me to market the property during escrow, which I have been doing. I have a loan pending in case I was not able to find a buyer before escrow closed. All of my closing costs are added into the loan amount so it will only cost me the down payment.

I have now been informed that the seller has not been able to find another place yet (he has been looking since November). He wants to know if we can extend escrow till February 28 at this time.

Here are my concerns. 1. I have to provide him with 24 hours notice to show property and chose not to use a lock box because I want to be at each showing if he is still living there. I don’t want it to slip how much I bought the property for. 2. It seems that some people will be turned off by the fact that I am not the actual owner yet and they have to wait for this escrow to close to be sure they get the property.

The down payment will not take a significant chunk out of the cash I have available for the amount of time I am anticiipating the property to be on the market. I know a lot of people do simultaneous closes but I have not and am not sure how it would work with the property being currently occuppied.

Would it be to my benefit to extend the escrow date? He understands that it won’t be extended further if I find a buyer, even if he still hasn’t found a home.

Any help would be greatly appreciated. This is my first REI deal!

Re: You don’t have a choice. - Posted by Erich

Posted by Erich on January 20, 2000 at 12:49:49:

You’ve got to extend the escrow. Your contract can be broken anytime the seller feels like it. Even if its illegal…what can you do sue? Would it be worth it to take it to court?

Re: Should I extend escrow till I have a buyer? - Posted by Jeff (NE)

Posted by Jeff (NE) on January 19, 2000 at 17:34:22:

Extend escrow and then go out and find a house you can sell to him for additional profit.