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Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
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Re: Financial Aid Disbursement Affect Closing?

If your contract extension is exhausted you will have to get another extension. Will not close without it.
Good Luck
May all your dreams and wishes become a reality!
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Strutte2
Posts: 35
Registered: ‎01-11-2013
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Re: Financial Aid Disbursement Affect Closing?

The contract is not expired, just the date we have to give written notice to the seller whether we're able to obtain financing and obtain the full amount of our earnest money. We already extended this date once while waiting on the underwriting.

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

Re: Financial Aid Disbursement Affect Closing?

Which is part of your contract. No financing contract void and your not obligated to purchase home.

Thiis would be written in your contract. That is why you had to get first extension. Now since expired again you will need another extension.

Call your broker or lo up and remind them it expires. Most likely they are already working on getting your extension through home owner, real estate company, or whomever is selling you the home.
Good Luck
May all your dreams and wishes become a reality!
Member
Strutte2
Posts: 35
Registered: ‎01-11-2013
0

Re: Financial Aid Disbursement Affect Closing?

My LO called me and stated because we're using a Bond program for the downpayment our file is subject to additional scrutiny, hence the additional time it is taking. He stated that he saw no red flags and everything looks good from his end and is expecting final approval Monday, which would be nice reassurance if I hadn't already heard this story.

 

So we've signed another addendum to the contract extending our financing approval. Hopefully the sellers are motivated to sign as they've been taking back up offers and from what I understand they're underwater on this deal. I wish my LO would escalate this and get it DONE.

Member
Strutte2
Posts: 35
Registered: ‎01-11-2013
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Re: Financial Aid Disbursement Affect Closing?

Update: Last week on the last day of the contract extension my loan officer called me and told me he had conditional approval provided I get him a copy of the cancelled gift check which I immediately sent over.

 

Now we have our final walkthrough scheduled and closing scheduling for 10am this Thursday. Today someone representing our financer called to verify my private student loans were in repayment and are current, which I presume to be standard procedure.

 

Have all the utilities ready to be transferred, now just waiting on the HUD-1 statement and hoping nothing new crops up and the amount we bring to closing will be within the $700-$750 range my LO quoted me.

Member
Strutte2
Posts: 35
Registered: ‎01-11-2013
0

Re: Financial Aid Disbursement Affect Closing?

So! After moving the contract date several times we finally arrived at closing day, only to be called by our realtor as we're pulling into the title company's parking lot and informed that the seller does not have the money they need to bring to close. 

 

HULK SMASH

 

We go through and sign all the documents anyway so if things get ugly the seller essentially has no recourse to say we didn't hold up our end of the contract. Had to cancel the moving van, our utilities are set to be turned off at the end of next week. 

 

The seller's were supposed to come to close with 18K which I understand is a significant sum, however they've signed off on the contract knowing this and their realtor surely informed them of what their closing costs would be. Now we're playing the hurry up and wait game. Meanwhile all the utilities at the new address are now in our name along with our mail being forwarded. Their own realtor now can't get them to answer the phone or return their calls. Ugh. 

Valued Contributor
Mike_B03
Posts: 1,141
Registered: ‎11-30-2012
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Re: Financial Aid Disbursement Affect Closing?

Wow that really sucks! So what happens if the sellers can't come up with the money?

Member
Strutte2
Posts: 35
Registered: ‎01-11-2013
0

Re: Update! The Saga unfolds...Financial Aid Disbursement Affect Closing?

It's in their best interest to figure something out, otherwise we could sue to enforce the contract in addition to legal fees and damages. Or we could walk away and still sue for damages (money spent on appraisal, inspection, FHA mandated repairs, etc.).

From what I understand their broker agreed to waive her commission (8k) and their relocation company is trying help them out. Our rate is locked at 3.25% for only 45 days so this needs to get resolved.
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Update! The Saga unfolds...Financial Aid Disbursement Affect Closing?

Wow!!! That sucks! I would be so mad that my utilities were transferred and mail was forwarded. That is just unbelievable! I hope everything works out for you soon. I really hope they get the funds they need so you can close. What is wrong with some people?
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NewbieReed
Posts: 416
Registered: ‎12-05-2012
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Re: Update! The Saga unfolds...Financial Aid Disbursement Affect Closing?

Unbelievable! What a nightmare!

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