Selling my house. Real Estate questions?

[stephen4785]

So this has turned into a colossal pita. I evicted my renters back in Sept 2017. Fixed the house up and put it on the market. neighbors sister wants to buy the house but cant close until Dec 19th. So we let her rent the house until closing. She pays in full. Dec 18th she has to extend her closing date because apparently she hasn't worked enough hours at her new job. I confirm this with her mortgage broker. I say ok but warn her if the house doesn't close on the new Jan 19th closing date to pack her shit and go. Low and behold, she cant close on the 19th because she started another new job in the meantime and her mortgage broker said they need 1 pay stub on before she can close. They say she can get her first pay stub on the 26th. So at this point Im not sure wtf is going on. She claims her mortgage broker told her starting a new job wouldn't hurt anything and her broker says he never said that. According to my real estate agent I cant evict her on the 19th and she can just extend the closing date and not loose her ernst money. I want to tell her to gtfo and relist the house. Which he says I can do but she gets to keep the ernst money and since theres an FHA appraisal on the property the FHA wont lend anyone a larger amount for 120 days because theyve already appraised it.
From my understanding, if you put up ernst money and cant get your loan by the closing date you loose your ernst money? now, Im stuck with this lady in the house that basically doesnt have to pay rent for the next month, I cant relist the price of the house higher if someone has an FHA loan, and Id have to evict her. What are my options?

[sc281]

Why doesn't she have to pay rent?

As long as she does, what's the problem?

[Ruffdaddy]

Ernest money is a waste of time. It's a fucking scam...we went through this shit.

Just about all real estate contracts are contingent on financing going through so she at least has a right to say she won't release it...and that's where the shitty part is. She has to sign off on releasing it. Even if she's in the wrong you've basically got to use the legal system to get them out.

You also can't sell it until the contract is off. Otherwise they can come after you legally.

[Ruffdaddy]

And I have no doubt her mortgage broker told her that...most of them are just a massive liability.

But You can get a mortgage when changing jobs if it's in the same field. I've done it twice now...the broker probably just didn't verify anything or know the details to begin with.

[LANTIRN]

Have you tried hitting her?

But seriously is there a way to fire the agent and start over? Sounds like some of this is bullshit. If she couldn't secure the loan on the agreed by date I don't see how you are forced to keep the buyer under contract or in the house. She violated her end of the deal. Contact a real estate attorney. Sounds like both the buyer and agent are not telling the truth.

[Chili]

What does the contract say? That's what really matters.

As to her renting, she's month to month, right? I would go ahead and just give her 30 days notice now so you're not waiting around any longer than you have to.

[Broncojohnny]

You need to read the contract. And as Ruffdaddy said, most of them have financing contingencies. You have to negotiate contingencies away up front if you don't want them to have that option. A good way to play it is to give them a certain number of extensions on their time to close but make the earnest money become your money at some point in that timeline. That is how we do it on the commercial side, ie they have 30 or 60 days of due diligence but once they proceed after that point, their deposit becomes non refundable and they have a certain number of days, usually 15 to close. If they don't close the contract terminates and both parties can walk away but we keep the money.

[stephen4785]

You need to read the contract. And as Ruffdaddy said, most of them have financing contingencies. You have to negotiate contingencies away up front if you don't want them to have that option. A good way to play it is to give them a certain number of extensions on their time to close but make the earnest money become your money at some point in that timeline. That is how we do it on the commercial side, ie they have 30 or 60 days of due diligence but once they proceed after that point, their deposit becomes non refundable and they have a certain number of days, usually 15 to close. If they don't close the contract terminates and both parties can walk away but we keep the money.

Sounds like good advice. Wish I wouldve known about the ernst money deal before.

[GE]

This will not end well. This chick can't afford the house and isn't ever gonna qualify.

[BradM]

If the realtor drew up the contract where you can't recover the earnest money, you may be fucked out of that. If she is paying adequate rent, I would let her stay until the appraisal is out dated, then boot her out. If she is paying low rent pending purchase, get her out now and take your chances.

[Chili]

If the realtor drew up the contract where you can't recover the earnest money, you may be fucked out of that. If she is paying adequate rent, I would let her stay until the appraisal is out dated, then boot her out. If she is paying low rent pending purchase, get her out now and take your chances.

I would generally agree but I get he impression he doesn't want to keep the rental, hence the sale. It's just one more opportunity for someone to trash the place, which he will then have to fix before selling.

Hopefully you got a deposit for the 'rental' piece.

[akfodysvn]

Your realtor sucks if you don't keep earnest money after contingency period.

Also, this person is month to month lease. They don't get to live rent free. Rent should not be prorated for any month. She pays rent or you evict her and ruin her financially

[Baron Von Crowder]

look at it this way, it's going to be another month to get someone else closed too, so is it worth losing the buyer on the hook?

[stephen4785]

I would generally agree but I get he impression he doesn't want to keep the rental, hence the sale. It's just one more opportunity for someone to trash the place, which he will then have to fix before selling.

Hopefully you got a deposit for the 'rental' piece.

I did get a deposit. If she leaves without buying I can keep the deposit if there's damage. If she buys the house she gets her deposit back regardless.
This is what happend last time I rented the house. https://www.youtube.com/edit?o=U&video_id=i94Fq68fQFY
As a back story-we were selling the house and the bands management company contacted our realtor with an offer. $1000 deposit, $1900 a month, and all paid up front. So we accepted. The home repairs didnt get close to the amount of profit we made. So it was still a good deal in my opinion. But the band wasnt supposed to allow anyone else to live in the house and once their member/manager moved out he took the management company with him so they werent going to pay for the house a second year. I have zero interest in being a landlord. If the house was completely paid for then sure. but Im still making the mortgage payments on the house while I have tenants. The profit is only $200 a month

[lowthreeohz]

$200/mo plus the equity they're paying into for you.