If the sellers keep money in escrow can you still go to closing? The bank was ready to close next week but the seller's still need to get 2 co's and they need to fill the underground oil tanks (which they are scheduled for in 2 weeks and the bank doesn't know about). So if the bank was ready to close are we able to if the co's are delayed longer? Our committment expires 4/28 and we're only locked in for our interest rate until 5/3. TIA!
ThongLori
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Re: Can you still close if the CO's are delayed?
I think COs are necessary to close. We could not close without it.
thiadora
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Re: Can you still close if the CO's are delayed?
As long as the bank approves the conditions, then yes. I have seen deals close where money is held in escrow in order to clear up CO issues or Violations. (But not every bank will agree to this.)
The bank might require that their attorney hold the escrow (instead of the seller's attorney- the sellers themselves will not hold the escrow.) The parties will enter into an escrow agreement which will outline what needs to be completed before the money will be released.
As far as the oil tanks, your attorney and the seller's attorney might do an adjustment if you close before the delivery. (You would get a credit for the amount that you'll pay to fill the tanks and then make the payments yourselves.)
julz33
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Re: Can you still close if the CO's are delayed?
FM laughinlala. She had major problems with COs. Her clsoing has been delayed for months .
NPbride
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Re: Can you still close if the CO's are delayed?
Posted by julz33
FM laughinlala. She had major problems with COs. Her clsoing has been delayed for months .
Oh no! So not what I wanted to hear! But thanks, I will FM her.
julz33
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Re: Can you still close if the CO's are delayed?
I sent you FM.
06NovBride
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Re: Can you still close if the CO's are delayed?
I work for a mortgage company and sometimes we close with something called a survey endorsement...this just means the sellers/buyers agree that all adjustments on the house they know about. It means that we don't have to have COs for everything. You might want to look into that...but I'm not sure if every bank will let you close with one.
thiadora
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Re: Can you still close if the CO's are delayed?
Posted by merri221
I work for a mortgage company and sometimes we close with something called a survey endorsement...this just means the sellers/buyers agree that all adjustments on the house they know about. It means that we don't have to have COs for everything. You might want to look into that...but I'm not sure if every bank will let you close with one.
Survey Endorsements are given on refinances where a survey already exists and there is no change in ownership, they are rarely for purchases (but yes, sometimes they are when there isn't enough time to obtain new survey). It doesn't cover co issues. It is a part of the bank's Mortgage Policy. It would offer no coverage to the purchaser. (I work at a title company.)
Niecey
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Re: Can you still close if the CO's are delayed?
When we were dealing with this we were told some banks will approve with a pending CO and some won't. I think if you get the mortgage with it - you can have seller put money in escrow or something like that until it is done. We made out seller get it as a condition upon closing. They got their very fast - they were very anxious to close!
corinne7477
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Re: Can you still close if the CO's are delayed?
our co was for hand rails on the deck we had the mortgage company state proceed without c/o and we closed on time. We fixed this after we moved in.
