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time for closing, and seller does have enough funds to close

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  • Dec 1st, 2009 4:04 pm
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[OP]
Member
Dec 13, 2005
360 posts
29 upvotes
Mono, Ontario

time for closing, and seller does have enough funds to close

Today was my closing and the seller did not have enough funds on her end to close off her debt on the home,

what can i do in a situation like this
right now im screwed, had to rent truck, move all my furniture to storage
staying at familys house, until the matter is resolved


any suggestions? never seen a situation like this before

whats the worst that could happen
13 replies
Deal Expert
Oct 6, 2005
16527 posts
2228 upvotes
Wow, time to call your lawyer! You better play hardball with this seller!

Just curious, how does the seller not have enough money to close? The money you pay to purchase the house is usually used to cover the seller's debts, lawyer fees, outstanding taxes, etc? Does the seller owe gobs of money?
[OP]
Member
Dec 13, 2005
360 posts
29 upvotes
Mono, Ontario
coolspot wrote: Wow, time to call your lawyer! You better play hardball with this seller!

Just curious, how does the seller not have enough money to close? The money you pay to purchase the house is usually used to cover the seller's debts, lawyer fees, outstanding taxes, etc? Does the seller owe gobs of money?


seller looks like to have taken out some sort of a 2nd mortgage on the house or something of that sort,


the lawyer is informed, any suggestions as to what i should be looking forward to?

what a pissed off day this was today
Deal Addict
User avatar
Sep 5, 2005
1220 posts
82 upvotes
is there an real estate agent involve? He/she didn't qualify the seller properly.
[OP]
Member
Dec 13, 2005
360 posts
29 upvotes
Mono, Ontario
Hot Ice wrote: is there an real estate agent involve? He/she didn't qualify the seller properly.
yeah i got an agent and so does the other party,
i (the buyer)
Sr. Member
Aug 4, 2005
789 posts
8 upvotes
Stouffville
I will echo the other posters, that holy crap I never heard of anything like this before. You will definitely need to talk to your agent and your lawyer! Although I would expect you are entitled to compensation from the seller for violating the contract, it will be like getting blood from a stone.
Deal Fanatic
User avatar
Oct 22, 2007
6110 posts
1073 upvotes
Mississauga
This happened to my Uncle this year and the agent gave him two options.

1. Keep the down payment $5000.00 and relist, in other words....move on.

2. Give the buyer more time to come up with the financing and if they can't then go to #1.
Deal Addict
Feb 5, 2009
2363 posts
331 upvotes
Maymybonneliveforever wrote: This happened to my Uncle this year and the agent gave him two options.

1. Keep the down payment $5000.00 and relist, in other words....move on.

2. Give the buyer more time to come up with the financing and if they can't then go to #1.
Problem is the poster is the BUYER!
Deal Fanatic
User avatar
Oct 22, 2007
6110 posts
1073 upvotes
Mississauga
My appologize, thanks GSRee. I guess I could delete but that's up to the op. As for as I'm concerned your agent should deal with the situation since you're paying them to do so. If the seller signed on the dotted line and there wasn't a clause in place for this situation, then they need to move out imediately. You can always charge them rent to stay in the home as well as a penalty, but if money is an issue then you may never see a penny.

Put pressure on your agent to take control of the situation.
Deal Expert
Oct 6, 2005
16527 posts
2228 upvotes
krossfyah wrote: seller looks like to have taken out some sort of a 2nd mortgage on the house or something of that sort,

the lawyer is informed, any suggestions as to what i should be looking forward to?
Your lawyer really dropped the ball in this case - the lawyer is supposed to dig up all this information prior to the transaction closing! That is afterall why you're paying the lawyer in the first place!
Sr. Member
Mar 27, 2007
942 posts
Toronto
The lawyer supposed to do title and lien checks for you.
[OP]
Member
Dec 13, 2005
360 posts
29 upvotes
Mono, Ontario
branat wrote: The lawyer supposed to do title and lien checks for you.
I believe the title search is done of the day of the closing,
seller told her lawyer she cant come up wiht the balance of the outstanding debt on the house, she needs to work with her bank in getting funds etc.
Newbie
User avatar
Sep 24, 2009
51 posts
1 upvote
Mississauga
The Lawyer is usually given up to a specific date to check on liens and encumbrances this should be stated in your purchase agreement. Check your document it's normally several days before closing to avoid this kind of problem someone dropped the ball on this.
I think you should be entitled to some form a compensation from someone.

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