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My condo was set to close tomorrow (6/10) but the title company is dragging their feet and it looks like it may not close until next week. I have not made this month's payment or HOA payment since neither would be considered "late" by the date of sale. If the closing is pushed back anytime after next Friday, they will both be considered late. I really don't want to pay another dime on this place.....what will happen if I don't? Would this affect the sale from occuring or will the bank just take their money at the closing? I am pretty clueless on this....any help or advice is appreciated.
Assuming your contract is pretty standard, the title company will prorate your HOA payments so you will pay for the time you are actually own the property and the buyer will credit back any unused payments to you. Find out from your title company first if you should make the payments--just in case they will be ready close in a very short time. The same goes for your bank payment. They will give the title agent a payoff based on your last payment but check first.
First that June payment is for the month of May. It's a matter of paying now or having your proceeds reduced. Unfortunately, by delaying, you have left yourself open to both. You need to do everything possible to make sure BOTH payments clear quickly or it could result in your lender collecting the June payment, but not reflecting it in their payoff. This means you could very easily pay the payment, but the title company would be unable to verify it's posted to the payoff (doesn't happen until the funds have cleared). So, you are stuck at settlement with a higher payoff and now you have to wait for the refund for over-payment from the mortgage company - which is usually received around 30 days after payoff.
The other reason, a mortgage history with a late fee is not something you want on your transaction history, especially if you are moving on to buy something else. No, it won't be reported to the bureaus as a 30 day late, but it may not be considered as a "paid as agreed." And, albeit an exellent reason (even if a 30 day late), it could stop you from receiving a mortgage loan.
Anyone that told you to wait to make your payment in this market is a wuss for telling you what you wanted to hear, not what you needed to hear, if they didn't explain the possibility of over-payment. We are seeing a record of serious delays in closings (for reasons never before imagined), I'd say we are at a 50% to 70% on time.........that's too wide of a gap to tell someone they don't have to make their payment because of the closing date.
smartmoney...thanks for the response and explanation. i did end up paying the june payment after getting nervous it could interfere with the closing....ontime and everything. have not paid the HOA dues though and don't plan on it.....hopefully that wont be a big deal. our HOA has let some owners neglect to pay for over 2 years without any consequence, so hopefully half a month wont matter too much.
Check what's in your P&S agreement because in mine it says all taxes and HOA have to be current on date of closing and I am not closing if they are not.
I need to speak to a real estate Attorney I feel like my present Mortgage Company set us up for failure. I have only been in my home for a little over 3 years, but only after 1 yr and a half my husband got layed off so my mortgage Company put us in forbearance and took there time I mean months to make decision bottom line I had to force them to take my payments. They refused to a few times leaving my account to get further and futher behind to the point I will never get caught up. In the mean time they are ruining my credit they have caused my credit to take a big hit. I didnt get y dream I got a nightmare. Now I have decided to put the house on the market. I just don't want a short sale or foreclosure. I need to speak to someone. I feel they set me up to fail. They denied the loan modification after waiting 5 months where they refused to take my money that would of prevented some of the past due. They messed me up big time. Now I am afraid if I do sell the house and pay in full that I wont be able to buy a more affordable home. Well my husband is back to work which is great. But it may be to late please help
I need to speak to a real estate Attorney I feel like my present Mortgage Company set us up for failure. I have only been in my home for a little over 3 years, but only after 1 yr and a half my husband got layed off so my mortgage Company put us in forbearance and took there time I mean months to make decision bottom line I had to force them to take my payments. They refused to a few times leaving my account to get further and futher behind to the point I will never get caught up. In the mean time they are ruining my credit they have caused my credit to take a big hit. I didnt get y dream I got a nightmare. Now I have decided to put the house on the market. I just don't want a short sale or foreclosure. I need to speak to someone. I feel they set me up to fail. They denied the loan modification after waiting 5 months where they refused to take my money that would of prevented some of the past due. They messed me up big time. Now I am afraid if I do sell the house and pay in full that I wont be able to buy a more affordable home. Well my husband is back to work which is great. But it may be to late please help
To be in forbearance, you had to have stopped making payments and on the verge of foreclosure.
I’m selling my home and I am 2 months behind. Close on Friday the 14th. Do I need to catch up on my payments before closing?
The escrow company will take it out of the proceeds of the sale and send it to the mtg co. before you get paid.
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