So, for the past 2 months, there hasn't been not one deal that I've had close on time (meaning the original closing date on the contract). The problem that I'm seeing is that EVERY SINGLE TIME the buyers don't want to pay the penalties for closing late!!! Just about every bank has it in their addendum/counter offer that if the buyer doesn't close on time, then they have to pay both an extension fee and per diam until they actually close the deal. IT DOESN'T MATTER WHO ON THE BUYER SIDE IS CAUSING THE DELAY. IT CAN BE THE BUYER, BUYER'S AGENT, BUYER'S LENDER, BUYER'S DOG, BUYER'S GRANDMOTHER, BUYER'S ANYTHING. IF THE BUYER'S SIDE IS LATE TO CLOSE, BE PREPARED TO PAY THE PENALTIES!!!
On every deal, there is some excuse as to why they can't close on time. And I'm always hearing from the buyer's agent "Well the buyer feels it's not their fault that the lender can't get docs so they don't want to pay the penalty" Or some other excuse. If you are going with the banks lender then maybe that can be worked out, but if you brought your own lender to the table (even if it was at your agents suggestion) then that is YOUR lender and YOU (as the buyer) are responsible for them not closing on time!!!! If you as the buyer don't want to pay the extension and per diam, then work that out between the lender and your buyer's agent. IT'S NOT THE SELLERS ISSUE.
Well two of my banks have put their "foot down" and we have actually lost two deals this month because the buyer's didn't want to pay the 300 dollar extension fee!!!! This is after the bank WAIVED the per diam and only required the extension fee!! I'm not understanding how you can sign off agreeing to pay the fee in the beginning and when you default, you're talking about "I don't feel I should have to pay!"
It's in BLACK AND WHITE "I will pay the extension fee and per diam if for any reason I don't close on time after my due dillegence period has expired." That why I love the banks because everything is in black and white, not left up to chance.
Moral of the story is, banks are starting to kill deals over the extension fees. So tell your buyer's (IN THE BEGINNING) to be prepared to pay those fees if ANYBODY on their side doesn't close, or face losing the house.
Bryan Knight, REO Specialist in Las Vegas, NV
Follow me at www.twitter.com/KnightREO