Results 1 to 3 of 3
  1. #1
    Join Date
    Apr 2011

    Default Short Sale Seller Will Not Move Out by Closing Date

    My question involves real estate located in the State of: Florida

    I am buying a short sale property and the bank has approved the sale. Approval was given on Mar. 8th. We were supposed to close on Apr. 14th, but the seller asked for an extension because they could not move out by then. The bank approved the extension, and so did I. The new date is Apr. 29th. Two days after both of us signed the extension, their agent contacted mine and said that the seller would once again not be ready to move out by the new date. They have now presented my lawyer with an addendum which states that they want to occupy the unit for 30 days post-closing. They would pay me $2,500 for my expenses during that month and they would deposit $5,000 into an escrow account, so in the event they are not out in 30 days, I could keep the money. They only offered this after I repeatedly refused to let them stay after the closing. I am concerned, because in the beginning of the transaction (8 months ago) they wanted to include in the contract that they could occupy the unit for 30 days post-closing. I said no. They seem to be so eager to want to stay after the closing. I have found out through searching the sellers name on the internet that he is in the real estate business. This concerns me because this seems like odd behavior for someone who is in that business. Is it unwise to sign this addendum? If I don't, what can I do if they don't vacate the property in time for the closing?

  2. #2
    Join Date
    Mar 2011

    Default Re: Short Sale Seller Will Not Move Out by Closing Date

    Perhaps the owner is thinking that if the sale falls through, they want to continue living in the home free of loan payments.

    Although the money might sound good enough for you to consider becoming a short-term landlord, consider what a good landlord would do:

    a) check credit references (aside from blowing his credit rating for the home's loan(s)), and

    b) check personal references, and

    c) fill out a standard renter's application, and

    d) carefully inspect the home, including taking extensive photos, and

    e) getting landlord insurance, and

    f) signing a (one month) rental agreement.

    You should also consider your recourse if the home has some damage hidden by their furniture.

    If you decide to not sign, and they stay, you would file an unlawful detainer motionin court. That starts the eviction process, which may take a few months to complete. You could be awarded damages, which might be more or less than $2,500 per month.

    Keep in mind that you are already know your prospective renters are uncreditworthy, though you don't know how far that unworthiness extends.

  3. #3
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Short Sale Seller Will Not Move Out by Closing Date

    If you want the sale to go through, you may have to agree to these terms. You may want to try for a larger amount to be held in escrow, to be forfeited if the remain past the agreed move-out date or as additional security against damage. You may also want to consult a real estate lawyer before closing, so that you can give proper notice to terminate any tenancy and be prepared to file an eviction lawsuit, if necessary, on the 31st day after closing.

    1. Sponsored Links

Similar Threads

  1. After a Short Sale is the Seller Eligible to Get the Money Left is Escrow
    By ph_dudley in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 01-24-2011, 06:54 AM
  2. Home Seller Filed Bankruptcy With Short Sale Pending
    By cleer98 in forum Buying, Selling and Conveying Real Estate
    Replies: 6
    Last Post: 01-18-2011, 11:56 AM
  3. Legal Remedies for Buyer when Short Sale Seller Not Acting in Good Faith
    By LAhomebuyer in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 12-30-2010, 11:18 AM
  4. Short-Sale Seller Won't Move
    By Wilma in forum Buying, Selling and Conveying Real Estate
    Replies: 5
    Last Post: 07-16-2009, 08:56 PM
  5. Foreclosure: Seller Backing Out of Short Sale
    By elmyra411 in forum Real Estate Finance
    Replies: 2
    Last Post: 07-02-2009, 04:39 PM
Forum Sponsor
Home Sales Contract
Everything you need to buy or sell a house, for all 50 states.

Untitled Document