Wednesday, February 19, 2014

My Closing Has Been Delayed, What Are My Options

Q: I was supposed to close on the house that I am selling in exactly one week. The people who are buying my house have to close on their house first. Their closing got pushed back at least 45 days which pushes my closing back which also means I can’t close on my new house. My husband got a VA Loan and I was wondering if I have any other options to close on my new house? 
–Ash, Illinois
A: In your question you state that “The people who are buying my house have to close on their house first.” This tells me that the funds required to close on the sale of your home are contingent upon the sale of your buyer’s home and you require the proceeds of your home’s sale to buy a new one. Do I have that correct?
Unless you have the funds in hand to proceed with closing on your new home you are stuck. One option however would be to seek owner financing on the funds you need from the owner of your new home. Maybe the seller is willing to do a short term note with you to close quickly.
The other alternative would be to obtain a short term bridge loan from a bank or other lender that would be paid off when escrow closes on the sale of your current home.
Either of these options will probably require the approval of your new lender so tread carefully and make sure everyone is onboard if you attempt to modify the terms of your deal. Full Article 

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