BiggerPockets

I am buying a quadruplex that takes in $2400 in rent a month. Original closing was set for the 12th but do to appraisal/inspection delays it has been pushed back to the 20th, maybe 21st.

The closing was pushed back because on the day of the appraisal/inspection (a Friday), the seller's plumber had an emergency and had to cancel the AM appt to put in a new water heater. The seller was slow in getting another plumber out there and needless to say the 10 AM appraisal/inspection was pushed back until 5:30PM... not enough time for the appraiser to get the paperwork in and thus the underwriters didn't get moving until the next monday...

Further delays are due to I don't know what, I am starting to get pissed at my loan officer for not answering my questions as thoroughly as before.

My question is that since I will be credited a prorated rent for the month of June, am I literally losing $80/day ($2400/30days) by having the closing date pushed back? From my calculations, this amounts to as much as $720.

If so, any recourse in getting this credited back to me?

If it's someone on your side of the table (your mortgage broker, for example) that is holding things up, then you need to take it up with him and determine what can be done to reimburse you. The problem there is that it's unlikely anyone will own up to being the roadblock; for example, if the loan is being held up, the broker will likely blame the underwriter. Etc...

If the delay is on the part of the seller, then your recourse becomes available every time you create an amendment to extend the closing date of the deal. In that amendment, you extend the closing date and can change any other terms of the contract that both sides agree on.

So, if you feel the seller is holding things up, you can always ask the seller to reimburse you for the time/money that was lost by extending the closing date. Of course, the seller can refuse, and in that case, it really boils down to which of you is more willing to lose the deal if the other side doesn't give in.

Ultimately, I'd look at it like this: You haven't been earning any money off the property your entire life...what's a few more days? :D

I agree. As long as you know it will eventually close. Dont sweat the small stuff.

So the closing has been delayed again, this time my mortgage broker won't give me a straight answer as to when. My guess is the lenders are sitting on their behinds.

My problem is that I have a flip going on at the same time and my first round of contractors are finishing up this week. I need to finalize my rehab money and I can't apply for anything until I close on this property. I have $5000 tied up in bank accounts that I can't touch because I need that buffer money for closing...

If this week goes by and I can't close I will be forced to pay my contractors with that $5000. Closing after the fact probably won't get my loan approved. What happens if I can't get get financing?

At this point, the flip is more important to me and the delays in this quad deal has put a very sour taste in my mouth. I would not mind sacrificing my $500 EMD and wiping my hands clean.

Let your broker know that you're willing to walk if he can't get the financing in place, and see what he has to say. If he's at risk of losing the deal, perhaps he'll take the initiative to contact the underwriter and get the true story of what's going on...

Thanks for the reply guys.

I talked to my mortgage broker and we are set for Friday at the latest. He gave me the go ahead to tap into the $5000 as well as get my loan under way for the rehab. With that off my shoulders, I can proceed to wait patiently for this quad deal to unfold and it will be winning property on my part.

I'll be able to pocket my housing allowance from the military with this property, can't wait!