Lender is going bankrupt on closing day!

[borreman]

What is the name of your state? CA

Here is a tricky situation I hope someone can help me with.
A buyer has agreed to purchase my home. 45 days ago, we agreed on a price, a 3% money was secured with escrow, and we agreed on a 45 days closing period, which ended last Friday.

The contigency period has been removed, the buyer has peformed all his duties, I performed all my duties, and now, after 44 days, the lending company announced they bankrupted! Bad luck I guess! The escrow company has already re-submitted the whole loan to a new lender, but in the meantime, I am losing money everyday, and I have a mortgage to pay.

I talked to the buyer's broker, and he told me the buyer still wants to go through, but I dont want to waste more time and money on this. I feel a per diem amount shoud be negotiated, but since it is not really the buyer's fault, I am sure the buyer will not agree.

If I decided to cancel the deal, am I at fault or would it be the buyer's fault? Would I get the earnest money as compensation? The contingency has been removed, but I wonder what arbitration would say. I feel like I am stuck waiting forever for a new loan to go through and thus losing more money (i have a mortgage to pay!), or cancel the deal and wait even longer for a possible money deposit.

Any help appreciated!

Thanks!

 

[HomeGuru]

What is the name of your state? CA

Here is a tricky situation I hope someone can help me with.
A buyer has agreed to purchase my home. 45 days ago, we agreed on a price, a 3% money was secured with escrow, and we agreed on a 45 days closing period, which ended last Friday.

The contigency period has been removed, the buyer has peformed all his duties, I performed all my duties, and now, after 44 days, the lending company announced they bankrupted! Bad luck I guess! The escrow company has already re-submitted the whole loan to a new lender, but in the meantime, I am losing money everyday, and I have a mortgage to pay.

I talked to the buyer's broker, and he told me the buyer still wants to go through, but I dont want to waste more time and money on this. I feel a per diem amount shoud be negotiated, but since it is not really the buyer's fault, I am sure the buyer will not agree.

If I decided to cancel the deal, am I at fault or would it be the buyer's fault? Would I get the earnest money as compensation? The contingency has been removed, but I wonder what arbitration would say. I feel like I am stuck waiting forever for a new loan to go through and thus losing more money (i have a mortgage to pay!), or cancel the deal and wait even longer for a possible money deposit.

Any help appreciated!

Thanks!

**A: why is escrow involved in submitting the loan papers to a new lender? In any case, terminate the contract but read your contract first.

 

[borreman]

Well, that didnt answer my question. If I terminate the contract, then what? Do I get the earnest money deposit because the buyer didnt perform? I feel he is not at fault either. What would arbitration say?

 

[HomeGuru]

Well, that didnt answer my question. If I terminate the contract, then what? Do I get the earnest money deposit because the buyer didnt perform? I feel he is not at fault either. What would arbitration say?

**A: you did not answer my escrow question so we're even.

 

[nextwife]

The buyers performed in accordance with their contract. You stated they DID obtain a loan commitment to purchase and close on this property. They were ready, willing and able to close in accordance with the contract. They cannot be faulted for the lender's sudden unforeseeable bankruptcy nor did their offer state they'd pay cash if their lender went belly up..

 

[borreman]

Thank you for your help.

 

[HomeGuru]

The buyers performed in accordance with their contract. You stated they DID obtain a loan commitment to purchase and close on this property. They were ready, willing and able to close in accordance with the contract. They cannot be faulted for the lender's sudden unforeseeable bankruptcy nor did their offer state they'd pay cash if their lender went belly up..

**A: yes so in this case the financing contingency in the contract prevails.