Has anyone ever had a seller back out?

[darbry]

I am a little over 2 weeks from our 65 day contract closing drop dead date. Our seller has not sent her closing docs in. We sent ours back same day of course because we are crazy excited. That was almost 3 weeks ago. I did hear that the seller had some questions but that's it. I sent an email to the contract dept asking for info because it seems I should know something. What if she doesn't send them in? Am I going to get all of my money back or will I have to pay fees? ( which would really tick me off) I'm trying to read contract but it's always a little muddy to me. Anyone else been in this situation?

 

[JimMIA]

Unfortunately, sellers backing out of sales does sometimes occur. Your broker should be able to tell you if there is a problem.

There are many reasons for failed transactions, but probably the most common is that the seller financed their DVC holdings, owes more than the proceeds of their sale will yield, and does not have the cash to pay IN to close. This particular issue would be pretty easy to spot if the broker did some due diligence, but some brokers do not. And often, the seller is so clueless that they don't realize their true situation until they receive their "good faith estimate" of the closing numbers.

Other complications can come from divorce, bankruptcy, probate, etc, but owing more than the contract is worth is the most common cause of failure.

IF your purchase does not close, you will not lose any money. Your deposit and money to close are held in an escrow account and will be fully refunded...by law. You should not incur any fees at all.

 

[darbry]

That would be so upsetting to waste all of this time for nothing. I will call closing company tomorrow and see what they can tell me. Thank you for your response.

 

[JimMIA]

That would be so upsetting to waste all of this time for nothing. I will call closing company tomorrow and see what they can tell me. Thank you for your response.

Check with the broker. The closing company isn't really responsible for follow-up. When all the docs are in, they conduct the closing...not much more. The broker is the one who should be building a fire under the seller.

 

[a742246]

Is the seller located out of the country? If so I would add about 2-4 weeks extra for a sale.

 

[darbry]

Thanks jimia I will do that.
No, the seller is here. I do know that she is widowed so maybe that has something to do with it.

 

[sndral]

Have you searched on the Orange county recorder's site to see whether there is a mortgage associated with your seller's DVC? If there isn't, then the seller shouldn't have to bring money to the table to close. You can also see if the deed is in only one name or if the deceased spouse is on the deed as well. If the later then that may be slowing things down. Amazing the info you can ferret out by looking on line at a recorder's office website.
Sorry for the wait - my slow sellers drove me nuts (hence my recorder web site research - but I did finally see my deed recorded verifying we had finally closed.)

 

[Minniesgal]

It can happen and I have read about it on here but I think it is rare. It does also happen that it takes a seller ages to return docs. I bought VGC in April/May and it took them over a month. They were selling 4 contracts and wanted them motorised all the same day. All you can do is call but you should get all your money back if they do pull out.

 

[VrBchJ]

The buyer on my first BWV contract backed out. I was so disappointed. But as often happens, the contract I eventually closed on was way better than the one that fell thru. Patience.

 

[darbry]

Well, good news. I took your advice and called the broker today which in turn made her call the seller to ask about the hold up and she says she sent it in the mail on the 23 rd. keep your fingers crossed folks. I guess she was upset about some of the costs on her side and wanted explanations.

 

[darbry]

Just got word that it closed. Waiting for deed to be recorded and points added! Yay! And were at Disney right now to boot! Pixie dust!!

 

[JimMIA]

Good! Congratulations!

 

[Poohs Pal]

LOL... This sounds like it could have been me... I had requested docs be sent to me from closing company because I would be on vacation at Disney during the time that I was supposed to be signing papers. Never happened. Arrived at Disney and got the email from closing company Called the closing company and made appointment to drive there and sign papers. We drove to Florida so had car. Easy peesy. A little issue came up after that while I was still in Florida but all was explained and I wasn't required to go back and sign more paperwork. We had 3 people come down with an ugly virus during this time(one ended up in emergency very sick) and I wasn't in the mood for issue's. Apologized to closing agent the next day and all was well... Now just waiting for check so I can buy more BWV points Everyone I worked with during this transaction was very nice to work with.. We had one person get sick on the drive home Got home last Saturday and feel like i need a vacation from vacation.....

 

[darbry]

I don't think it was you poohs pal. Glad everything went well for you!

 

[darbry]

Got my points today and already booked!!! Woohoo!