resale settlement - date passed...no seller paperwork

[Mlissa88]

Has anyone, as a buyer, ever seen their settlement date pass and the seller hasn't even returned the paperwork? I'm so irritated right now. Should have settled on Friday and when I called to see what the status was, I was told that the seller did not return their paperwork.

I know that resales can have problems and delays....I've seen a fair share in the past on the boards and with my own experience (my last one took 90 days ) but seriously? No paperwork? And no phone call from the title co or the broker to see what the hold up is?

Now I understand the beauty of buying direct..... There are points that are going to expire because the seller is not concerned about returning paperwork or responding to phone calls....

Still waiting to hear from the title co on the status....I won't hold my breath.

Thanks for letting me vent...

 

[RobOnDisney]

You'll be fine. I was actually guilty of turning in paperwork the date of settlement when I bought resale. So we were well behind schedule. You're got a contract, things will move forward.

Have you called your Sales Agent or Closing Agent to inquire about status?

 

[wdwnomad]

I hate to be the first to chime in because I think my experience is the worst case scenario. I was in the same boat as you just a couple months ago. I had pasted ROFR and was patiently waiting my closing docs. It was during when everyone was closing on their 3/26 contracts. Everyone kept saying the closing companies were backed up. I was holding off calling anyone because of this. I finally decided to contact my broker and see what the deal was. I was going to put pressure on everyone because I was tired of waiting. The closing date had finally come and gone on my contract and I haven't even gotten my documents yet. The broker called me back and said there is a problem. He said the seller filed for bankrupty and our deal had fallen through.

I was beyond frustrated at that point. However, there is a silver lining in it. I just can't share it yet. Don't want to jinx it.

 

[Mlissa88]

You'll be fine. I was actually guilty of turning in paperwork the date of settlement when I bought resale. So we were well behind schedule. You're got a contract, things will move forward.

Have you called your Sales Agent or Closing Agent to inquire about status?

Thanks. Just a bit frustrated. Yes. I called both - they said they would check into it. One said that last week and I haven't heard anything since. The other replied to me today that the seller didn't return the paperwork (a fact I already knew). I'm just irritated by the process and lack of follow up.

 

[Mlissa88]

I hate to be the first to chime in because I think my experience is the worst case scenario. I was in the same boat as you just a couple months ago. I had pasted ROFR and was patiently waiting my closing docs. It was during when everyone was closing on their 3/26 contracts. Everyone kept saying the closing companies were backed up. I was holding off calling anyone because of this. I finally decided to contact my broker and see what the deal was. I was going to put pressure on everyone because I was tired of waiting. The closing date had finally come and gone on my contract and I haven't even gotten my documents yet. The broker called me back and said there is a problem. He said the seller filed for bankrupty and our deal had fallen through.

I was beyond frustrated at that point. However, there is a silver lining in it. I just can't share it yet. Don't want to jinx it.

Glad you had a silver lining. I'm afraid I'm stuck unless the seller backs out.

 

[JimMIA]

Glad you had a silver lining. I'm afraid I'm stuck unless the seller backs out.

You shouldn't be stuck. Check your sales agreement to see what the wording is, but if the transaction doesn't close by the scheduled closing date through no fault of yours, you should be able to get all your money back and move on.

 

[cvjw]

I had the exact same thing to happen to us. The close by date came and went and the seller hadn't returned their closing papers. In our case, the seller needed to get a copy of a deed, and wouldn't do it. We canceled the contract and got our down payment back. We used the TSS, and they sent our money right back to us. I would just see about canceling the contract and moving on.

 

[Mlissa88]

You shouldn't be stuck. Check your sales agreement to see what the wording is, but if the transaction doesn't close by the scheduled closing date through no fault of yours, you should be able to get all your money back and move on.

This seller has multiple contracts for sale so I'm thinking others will be in the same boat. Mine is just the first scheduled to close. Maybe they are just waiting to send all the paperwork back at once...

I'm giving it another 5 days....then I'll see what my options are. My sales agent is very nice. I know it's not her fault but I'd like to get this over with....

 

[JimMIA]

My sales agent is very nice. I know it's not her fault but I'd like to get this over with....

We don't know which broker you're using, although I'm sure many of us can guess.

One thing you should keep in mind is that your "nice" agent is getting paid a 10% commission for handling the transaction. And although that commission is disbursed from the seller's proceeds at closing, the truth is YOU are the person sending the cash to pay that commission.

There's no excuse for a contract arriving at the "close by" date and the paperwork not being in. It's not like there is a 3-day lead time -- there's AMPLE time to get everytning done.

Somebody -- either the broker, the closing agent, or both -- is not doing their job.

Also, a normal seller would not delay in sending their paperwork in. The problem might be the seller CAN'T close. Could be due to legal issues, could be they're under water and don't have the cash required to put IN to close, could be a lot of things.

You have every right to know the reason for the delay. If your broker can't, or won't, tell you what the problem is, I'd RUN, not walk, away from that deal.

 

[TisBit]

Has anyone, as a buyer, ever seen their settlement date pass and the seller hasn't even returned the paperwork? I'm so irritated right now. Should have settled on Friday and when I called to see what the status was, I was told that the seller did not return their paperwork.

I know that resales can have problems and delays....I've seen a fair share in the past on the boards and with my own experience (my last one took 90 days ) but seriously? No paperwork? And no phone call from the title co or the broker to see what the hold up is?

Now I understand the beauty of buying direct..... There are points that are going to expire because the seller is not concerned about returning paperwork or responding to phone calls....

Still waiting to hear from the title co on the status....I won't hold my breath.

Thanks for letting me vent...

The buyer is usually in a much bigger hurry than the seller. Many sellers are either resentful or sad that they are selling (there are some that look at it differently, but those are fewer and further between). I think if someone is selling out of hardship, they may even intentionally let deadlines pass, etc just to be a pain.

 

[Mlissa88]

We don't know which broker you're using, although I'm sure many of us can guess.

One thing you should keep in mind is that your "nice" agent is getting paid a 10% commission for handling the transaction. And although that commission is disbursed from the seller's proceeds at closing, the truth is YOU are the person sending the cash to pay that commission.

There's no excuse for a contract arriving at the "close by" date and the paperwork not being in. It's not like there is a 3-day lead time -- there's AMPLE time to get everytning done.

Somebody -- either the broker, the closing agent, or both -- is not doing their job.

Also, a normal seller would not delay in sending their paperwork in. The problem might be the seller CAN'T close. Could be due to legal issues, could be they're under water and don't have the cash required to put IN to close, could be a lot of things.

You have every right to know the reason for the delay. If your broker can't, or won't, tell you what the problem is, I'd RUN, not walk, away from that deal.

I've never been a seller so I'm not sure what they need for closing. What cash is required to close on the seller's end? I'm paying the closing costs - so couldn't everything else come out of the money from the sale?

 

[Mlissa88]

The buyer is usually in a much bigger hurry than the seller. Many sellers are either resentful or sad that they are selling (there are some that look at it differently, but those are fewer and further between). I think if someone is selling out of hardship, they may even intentionally let deadlines pass, etc just to be a pain.

That's understandable. And I get that it's summer and possibly they are on vacation but like Jim said, it's not like they got notice overnight about the closing.

 

[Sandisw]

I've never been a seller so I'm not sure what they need for closing. What cash is required to close on the seller's end? I'm paying the closing costs - so couldn't everything else come out of the money from the sale?

Yes, the costs will be deducted from the seller's proceeds. We are in the process of both buying and selling right now and that is what we are told.

I do know that seller's have to see a notary and that could also be a hold up. However, I think giving them a few extra time is understandable but beyond that, I would also be frustrated.

 

[Mlissa88]

Yes, the costs will be deducted from the seller's proceeds. We are in the process of both buying and selling right now and that is what we are told.

I do know that seller's have to see a notary and that could also be a hold up. However, I think giving them a few extra time is understandable but beyond that, I would also be frustrated.

BTW - was excited to read that you found the contract you were hoping for! I'm excited for you!

 

[Sandisw]

BTW - was excited to read that you found the contract you were hoping for! I'm excited for you!

Thank you!! And, now that we passed ROFR, hopefully, we will be BWV owners within the next month!

 

[Mlissa88]

Thank you!! And, now that we passed ROFR, hopefully, we will be BWV owners within the next month!

LOL...and hopefully mine will have closed by then. Or that I'm on to hunt a different contract.

 

[JimMIA]

I've never been a seller so I'm not sure what they need for closing. What cash is required to close on the seller's end? I'm paying the closing costs - so couldn't everything else come out of the money from the sale?

There are some minor fees that the seller pays, in addition of course to the commission.

The bigger problems come up whenever one (or more) of several conditions are present:

• Mortgage payoff -- if the seller financed their DVC and they owe more on the mortgage than their selling price is going to give them, that can be a BIG problem.
  
  Before the deal can close, the dues have to be paid, the mortgage has to be paid off, and the commissions, closing costs, and other fees have to be paid. If the sales proceeds are not enough to pay everything, the SELLER has to bring cash to closing.
  
  If people are in financial distress to begin with, they may not have the money. And a lot of DVC owners who financed and are in trouble may not even know they need to pay IN to close until they get their closing statements.
  
  
• Divorce -- if the owners are in the process of a divorce, the DVC sale can become just one more weapon in somebody's arsenal. Obviously, both sellers would have to sign off on the sale, and if one wants to be difficult for any reason, you've got trouble.
  
  
• Bankruptcy -- if the sellers are in, or going into, bankruptcy, that can really complicate things. Often bankruptcy issues get resolved quickly to permit the sale, but not always.
  
  
• Probate -- if an owner passed away, delays can come from the probate process.

 

[Mlissa88]

There are some minor fees that the seller pays, in addition of course to the commission.

The bigger problems come up whenever one (or more) of several conditions are present:

• Mortgage payoff -- if the seller financed their DVC and they owe more on the mortgage than their selling price is going to give them, that can be a BIG problem.
  
  Before the deal can close, the dues have to be paid, the mortgage has to be paid off, and the commissions, closing costs, and other fees have to be paid. If the sales proceeds are not enough to pay everything, the SELLER has to bring cash to closing.
  
  If people are in financial distress to begin with, they may not have the money. And a lot of DVC owners who financed and are in trouble may not even know they need to pay IN to close until they get their closing statements.
  
  
• Divorce -- if the owners are in the process of a divorce, the DVC sale can become just one more weapon in somebody's arsenal. Obviously, both sellers would have to sign off on the sale, and if one wants to be difficult for any reason, you've got trouble.
  
  
• Bankruptcy -- if the sellers are in, or going into, bankruptcy, that can really complicate things. Often bankruptcy issues get resolved quickly to permit the sale, but not always.
  
  
• Probate -- if an owner passed away, delays can come from the probate process.

Thanks Jim! It makes sense now....I can guess it's one of the above listed problems.

 

[katieandemismom]

Our purchase fell through today. I called to prod about the three weeks with no points only to find out my sellers were divorcing and declaring bankruptcy. Back to the drawing board I guess.

 

[JimMIA]

Thanks Jim! It makes sense now....I can guess it's one of the above listed problems.

I'd try to find out which one(s). If it's an upside-down mortgage or divorce situation, those could be permanent impediments to them ever closing.

If it's just a delay, that's workable. But I'd hate to see you hang on, hoping against hope, and then have the whole thing cave in. Better to have a horrible ending than a never-ending horror.