The WTF House just got WTF-ier…
If you’re not familiar with the back-story, read this first…
Yesterday (Friday) was closing day. The bank had made it clear that if we didn’t close by yesterday, the deal was off and the sale was no longer approved. And if the deal fell through, the sellers would lose their $20,000, likely get foreclosed on, likely owe the bank money for the foreclosure and then get their credit destroyed. Basically, all they had to do to get their $20,000 and avoid all that bad stuff was to be out of the house by yesterday afternoon and then show up to sign the closing documents. They couldn’t do either.
Closing was scheduled for noon. My wife showed up at the house at 11:00am to verify that the sellers had moved out –- they hadn’t moved a thing. When my wife asked why not, they said, “Oh, we’ll be out by later tonight.” My wife explained that they needed to be out before the closing, which was just an hour away. (For reference, we weren’t going to give them extra time, as they clearly didn’t want to move and if we let them stay for a few extra hours, we risked having them squat in the house for much longer and having to jump through hoops to evict them).
After many discussions between my wife, the seller’s agent and the sellers, it became clear that the sellers didn’t quite comprehend that they’d lose everything if we didn’t get this closed by the end of the day, and that we weren’t going to close if they weren’t out of the house. Finally, by noon yesterday, the sellers seemed to get the message and agreed to move by 4pm, at which time every one would convene at the seller’s house and we’d close there.
Of course, 4pm comes around, and the house is still 80% full of stuff. The sellers aren’t even around when my wife, the closing attorney and the seller’s agent shows up to sign the docs. My wife then had to listen to the sellers tell her how unreasonable WE were being by forcing them out of the house on such short notice (they knew literally a month ago that we needed to close by yesterday, they just chose to ignore the information). My wife offered one final concession -– she said that we would sign an agreement that said we’d close immediately, the sellers $20,000 moving bonus would go into escrow, and we’d give the sellers 24 more hours to get their stuff out of the house; if they didn’t have their stuff out within 24 hours, we were entitled to $2500 from escrow to cover the cost of having their stuff hauled away and disposed of.
Finally, at 4:45pm, 15 minutes before the deadline (the closing attorney would have to wire the funds to the lender by 5:00pm), the sellers agreed to the deal. The closing attorney rushed to the bank to get the funds wired, but the husband – who needed to sign the docs – still hadn’t shown up to sign. The attorney called the husband to tell him to come directly to the bank in hopes they could get everything done in the final 5 minutes before the bank closed.
And…of course…the husband didn’t make it in time. He showed up at 5:00pm and signed the docs, but by the time they were done, the bank was closed, and the funds couldn’t be wired to the lender. This creates a very interesting situation — while all the closing docs are signed and we’ve transferred cash to the closing attorney to pay for the house, technically the house isn’t sold unless the lender agrees. And the lender had made it clear that if they didn’t get their money by yesterday, the short sale approval was no longer good.
I guess this means we wait until Tuesday to see if the bank accepts the payoff — if they do, we own the house…if they don’t, either the sale will fall through or we’ll have to start the short sale process over. The funniest part about the whole thing is that the sellers and the seller’s agent believe the house is 100% closed — they couldn’t grasp the concept that the approval expired, so now the bank may turn down the sale and refuse to pay the sellers their $20,000 (and refuse to pay the agent her commission)…
I’m very curious to see what happens. More on Tuesday!