A buyer in contract is a precious commodity to a seller in the current real estate market. Look at the calendar, read the news. This is July 2008 not March 2005. If I had a seller client in your situation, I would be advising patience and wisdom. Despite the uptick in the number of sales, and decrease in inventory, values and prices are not going up any time soon. A buyer who is only one week from being able to close is better than no buyer. I think you just have typical late escrow jitters. (also known as buyers remorse or sellers remorse) Almost all sellers and buyers get the jitters.

Take a deep breath, clear your head, and think about where you want to be in ten days:
Back on the market with your property? or with a closed escrow in your immediate past.?

Mon Jul 14 2008, 12:27

Jennifer,
Do you have representation? In answer to your question, the date that you submitted on your 24 hours to perform certainly gives you the right to cancel the escrow if the Buyers do not release their loan contingency. It has nothing to do with conditional or non-conditional.

In this real estate market unless you have a willing and able buyer standing in the wings that you have verified their ability to perform, I would continue with the current home buyer instead of having to go through all the contingency periods again. Just my suggestion...

Wishing you all the best,

Gena Riede, Real Estate Broker
Remax Gold

Mon Jul 14 2008, 08:12

Whether the buyer’s loan approval contains conditions is insignificant in most cases because almost all loan approvals contain conditions. It could be something simple such as signing the loan application or more complicated such as verifying the source of bank deposits. What’s important is that the buyer release the loan contingency within the specified time period. Because if the buyer can’t perform after that, you may be entitled to the buyer’s earnest money deposit and the Liquidated Damages clause in the contract applies.

Typically, if you’ve given the buyer a Request to Perform, specified the response time and the performance is not met, most sellers then issue a cancellation of contract. When I represent the seller, I obtain a Request to Perform in advance and send it on the date the contingencies are to be removed, regardless of whether I believe the buyer will perform because it protects my sellers.

The question I have for you, if I’m allowed to pry, is why do you want to cancel the contract? Why not ride it out, especially since you’ve come this far? Do you have a better offer waiting in the wings?

Mon Jul 14 2008, 07:29

The clock is ticking, and you need profesional assistance. get to a RE attorney today, and get that assistance. Best of Luck! The Coach

Mon Jul 14 2008, 06:46

Hi Jennifer:

What does your Realtor say about the whole situation?

Not knowing all the details, I have to say that it's up to you to decide what risk you want to take.

No, you don't have to accept any conditional approval, you already gave 24 houses notice and it has passed now. You can cancel anytime.

If not and if he removes loan contingency, he should increase the deposit, and hopefully the deposit is decent.

A few things - First, 26 days for loan contingency removal is long. 2nd, the guys switched lender so close to close of escrow, why? third, is his pre approval on Monday really valid? Will this change the close of escrow day? How long do you have to wait for close of escrow now?

Are you willing to wait for him to perform and find out how solid he really is (and i am not saying step at a time, but really close escrow - your ultimate goal) or are you willing to lose this possible buyer and try to get another one.

These are details and decisions we don't know as a 'casual' replier on Trulia - I say 'casual' because we are not really intimately involved in the transaction and don't know the details.

I am sure your Realtor should be able to explain all this in detail. If you don't have one, you really should get one. There is just so many things that's not black and white in real estate.

Good luck and let us know how it went.

Sylvia .

Mon Jul 14 2008, 06:35

Jennifer
Are you using a Realtor or selling without professional representation? Sounds like the latter to me.

If you have a Realtor, then they should be answering this for you.

If you are not, then you are using some off the shelf forms that we do not have any knowledge. So, for one, we should not advise you. You need legal advice from an attorney.

Second, there is a principle in real estate "time is of the essence". Timely action is critical because there are deadlines that, once passed, are worthless. Particularly with purchases, financing is a real issue right now. Even qualified buyers are having problems getting loans.

The key to closing escrow on time is to be PROACTIVE. Most sharp REaltors do not wait until the contingency date to follow up on financing, they are asking the buyer's Realtor:
1. With the offer we want a Pre-approval, not a Pre Qualification letter, a Pre-approval letter.
Proof of funds, and a FICO score
2. I call the REaltor and get the name of the lender , then I call the lender and talk with them directly asking "If we go into escrow is this buyer going to get approved" and if I have ANY question I require the buyer to co-app with a lender whom I know personally, and we dual track the app process so the back pu lender can jump in.

3. The contingency removal statement says that if you do not have loan approval, then I am cancelling the contract. That also goes for appraisal and numerous other steps. What concerns me is that if you missed this deadline and crtical point, what else are you missing?

Mon Jul 14 2008, 06:19