What are your thoughts? A question of legality versus morality is amongst us. In the current real estate environment, per diem charges of approximately $100 are being assessed for each day an escrow is closed beyond the contracted date. With the Federal Reserve closed due to Hurricane Sandy, loans cannot fund today. Even if the market re-opens tomorrow and the mortgage loans in connection with these escrows do actually fund tomorrow, many Counties do not "record special" (thus pushing back the scheduled closings for October purely out of logistics).
This poses the question: Should the per diem be assessed anyway? Is there a provision in the purchase contract that states (or implies) that a natural disaster is a suitable and justifiable reason to push back penalties? Assuming there are no legal or implied provisions, do we morally have a duty to look beyond what is contractually agreed upon and allow common sense to prevail given the "bigger picture" circumstances?
I completely understand and respect the potential damages of local Homeowners who are prepped to sell their home, with boxes packed and moving trucks scheduled. That said, the same people who work on Wall Street (and the anciliary and related industries) are being forced to stay indoors and protect their families due to a natural disaster. These fellow human beings have much more pressing priorities to re-assess than the inconvenience of rescheduling their moving trucks (or living out of boxes for one more day).
This post is intended to take a neutral stance on this matter, yet seek out the opinions of fellow industry professionals. What are your thoughts?
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