What should I do about repeated bank delaying of the closing of a foreclosure property?

Question

After much searching I have finally found the perfect house... it's a foreclosure, but in decent condition and for the right price. However, the bank keeps delaying the closing date and asking us to sign extensions to the contract. It was originally scheduled to be the 29th of July, then was extended to the 8th of August, and then was delayed to the 15th. They said it was because of a title issue, however, they have delayed it twice, which makes me wary.

In the contract it says that if the house is not closed on the 12th of August, either party may void it if they so choose. Should I continue to sign these extensions, or should I put my foot down and demand the contract goes through and risk having the deal fall through?

Answer 1

I guess it depends on how much you want it. Perhaps you can ask them for proof of these issues that keep delaying the closing. The bank is going to drag it out. That's what they do. More than likely, though, they want their money. If you tell them "Close or I'm walking," they might just go ahead and do it. Be prepared for the eventuality that they say no, though. It isn't very likely; like I said, they want their money, but it IS possible.

They will all try and s***w you around. I remember the day we went to close on a house in 2000. They all of a sudden turn around and ask for 400 more dollars. I was like "No f_cking way. We don't have it, that's not what we agreed on and if that's what it is then forget the whole thing." All of a sudden, they're going to "see what they can work out." Yeah. I bet. Guess they already saw what DIDN'T work out. Real estate agents will try to get you to pay higher than what you want to for a property... they are all out to s***w you because the more you pay, the more they make. Just use common sense and watch yourself.    

Answer 2

You can either refuse to extend the contract any longer, or you can sue the bank to enforce the contract. That will, once the lawsuit has been decided in your favor, force the bank to resolve the title issues and go through with a closing date.

It's up to you whether to keep signing the extensions. But if you don't sign them, the bank probably won't care -- one house isn't worth very much when lenders have hundreds or thousands of foreclosure properties to deal with.

Good luck.

ForeclosureFish

Answer 3

The question is back on you.

How bad do you want the house.  If you put your foot down, be prepared for the bank to say good-by.

If you are signing the extentions you are agreeing to the new terms of the close date.