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Short-term rental is seller’s best option until closing is completed

Talia Freedman/Real Estate

Q: I was supposed to close on the sale of my house a week ago, but the buyer’s lender keeps having delays. What am I supposed to do? I’m waiting to close on a new house, too! I have to start a job in my new city. Should I try to get the seller of my new house to let me move in early?

A: This is a tough situation, though not an uncommon one. There are many reasons for delays in a loan and all of them are out of the seller’s hands.

In terms of moving into the new house before closing on either, that honestly complicates the situation and creates unnecessary risk for all parties. The worst-case scenario is the buyer of your house cannot move forward due to a rejection from the lender, and you are unable to sell your house at all. You would hate to have moved into a house you can no longer buy.

Even if you don’t try to move into the new house early, you may want to find out why there are delays on your buyer’s loan so you have a better sense of the situation and the likelihood of its actually closing. After all, the final approval on a loan comes rather close to the closing, and, if something goes wrong with your buyer’s finances or work status, they might not be able to move forward. But that doesn’t help you get moved in time to start your job.

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I would suggest a short-term rental until the house situation resolves itself. Ultimately, there’s nothing to really do but wait for the closing on your house, so you can complete the purchase on the new house. In the meantime, get moved into something temporary, and just see what happens. If the buyer can’t get their loan, you’ll need to find a new buyer for your house. I know this is a tough time, but, right now, all you can do is wait and see.

Talia Freedman is the owner of Talia Freedman and Co.

 


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