Seller pushing closing date,Lock rate will expi

Rates have fallen since November , I'm sure your lender will be ok with an extension

In NYS closings get delayed all the time, a broker told me about a place that took 9 months to close, so this is alas rather common. However, one thing I would be very, very careful about, is renting the place to the sellers after you close. I am a bad ass and I personally refuse to do that, I think a few days is harmless. But two weeks? I do not like this and would never ever do it. Because you fast turn into a landlord, and do you really want to be an accidental landlord in New York City? No you do not. If you agree to let them live there 2 weeks, before you do so, ask your lawyer what happens if they refuse to move out after two weeks. They can't find a place, whatever, we got little kids, wah wah. And certainly charge them an obscene amount of rent for each day they stay over--saved in escrow at closing. Tell them this is what extended stay hotels are for.

extending a rate lock is just a matter of money. I don't know whether they'll agree to it, but why don't you have your attorney ask seller to pay your rate lock extension costs?

ali r.
{downtown broker}

We did the accidental landlord deal. If you end up doing it. Make sure seller puts a sizable amount in escrow. Rent rate s/b above market and get way above mkt (punitive) after a designated time. Make sure your lawyer knows the in's and outs and draws up a bullet proof agreement that protects your interests (i.e never use the word lease in the agreement) I would strongly prefer extending rate lock/closing.

We had the reverse problem with our buyer. We were ready to close and he took off for a vacation out of the country for a month. He refused to believe that his bank would ask for all his latest finances again when he returned. So this delayed the closing another 2 weeks after he returned.

He was given 2 possible dates for closing: 1 day before his mortgage commitment expired and 1 day after. He refused the 1st date because his wife couldn't attend and he didn't want her to sign by proxy. So he picked the second date, only to find out that his bank was going to charge him a lot of money. So he demanded that we pay this amount or the deal was off.

We told him that we were not paying the fee because he caused his own problem. Furthermore, he would forfeit his deposit money. We could not close on the property we were buying without this sale. His deposit would cover our losses on our purchase. The deal did go through because the brokers paid his extension fees.

Wow jelj13, what a story!

Thanks everyone for great comment ad advise. My concern is if they do not even agree to pay for my extension or they say No to everything (moving early , closing early and pay) , what are my option? looks like i will be losing in every way in that case, I asked the same question to my lawyer, his answer did not come through yet because he is another person that i can contact ontime

How much is a lot of money? This story doesn't sound right, jelj.

But as far as airmanan's problem; a bank will always extend a rate lock. But I would NEVER close on a property without the sellers leaving.

Last rate lock extension price I saw quoted was $100 per $1 million of loan per day. Streetsmart, do extension prices change as interest rates/market conditions change?

ali r.
{downtown broker}

No extension prices don't change, but if interest rates have gone down then the borrower should get a lower rate provided that he doesn't wait for his lock to expire to ask for the extension.

This is why I like to say it doesn't matter who your lawyer is unless something goes wrong, and then it's everything. I hired an inexperienced Brooklyn lawyer to close our co-op sale because she was cheap, and of course things went wrong.

Aiman your lawyer we hope is a good negotiator and will put her foot down as needed. I once had a lawyer get me out of a signed contract to purchase on what was possibly a technicality, possibly not, and because he knew how to push and how to bluff.

American culture is not very negotiation-oriented. I took some classes on negotiation which made me a whole lot better at this, but my Midwestern Pseudo-Nice gives me anxiety while I do it, in some cases.

Look hard at the riders of your contract and see if they say anything you could use to your benefit. And some real estate transaction attorneys get lazy over time, I wouldn't be afraid to talk turkey. What you want is *fair*, you do not want to be victimized by bad behavior by the buyers.

There are two things, according to Wells Fargo when I was helping my in-laws with their purchase. One is rate extension, which is X% of loan amount and I think Wells offered that as 2 week option, meaning you can keep extending every two weeks.

The other is rate relock, which means you are doing the loan all over again and the bank may or may not charge you fees again and you are locking in at a new rate. I recall this option cost 1% at Wells and the extension was something like 0.375% a month.