extensions and how they work

[Anonymous]

Ive read on here about people geting upwards to 2 to 7 extensions waiting to close on a house. Who is in charge of the extensions sellers or buyers? I know on my contract from the sellers it says you have to pay every 30 days after youre 60days our up. So does that mean u have to pay the sellers? Or them and the bank Just to locked in at my rate?

[StartingOver10]

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@Anonymous wrote:
Ive read on here about people geting upwards to 2 to 7 extensions waiting to close on a house. Who is in charge of the extensions sellers or buyers? I know on my contract from the sellers it says you have to pay every 30 days after youre 60days our up. So does that mean u have to pay the sellers? Or them and the bank Just to locked in at my rate?

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Both the buyer and seller negotiate an extension. Normally you don't have to pay to have one, unless you are buying an REO property.

Why are you getting an extension? Is it a lender related issue or a seller related issue?

[Anonymous]

This is a usda loan and in Ohio it takes 60,plus days to close I'm set to close August 31. But we've had to have two appraisals because stuff that was suppose to be fixed wasnt so its a sellers related issue. Usda is runing about 25 days right now and the repairs is the only thing holding my file up from being sent.

Now you say the buyer doesn't pay for the extension I've been reading post on here of different people haveing to pay 50 or more a week. I will be contacting the loan officer in the morning to see how they do it.

[StartingOver10]

I have read the posts too. The seller's they are referencing are banks for REO properties.

The only other time would be if you locked in your rate and you go beyond the rate lock period. Then you pay to lock again. But you don't pay to float your rate.

From your description it does look like a seller issue because the repairs weren't done on time.

[Anonymous]

You were right agent and seller will make an extension. But everyone is still pushing for the 31 of this month but loan officer said most likely first or second week of September.thanks for the help startingover

[webhopper]

If its a seller issue; and you're having to pay to keep your rate locked; you could ask for those costs back from the seller.