I recently sold my home in Newbury Park, CA. The closing was delayed by the seller from May 28, 2013 until the home closed on June 6, 2013. When I contacted my Mortgagee about the disbursement of our escrow account. I was notified that because of the delay of the closing from the end of May to June 6th we were required to pay the FHA loan interest for the month of June along with the PMI for the month of June. If we had closed prior to June 1, 2013 we would have been returned approximately $1,750.00 from the escrow account. Does still sound accurate and do my wife and I have any recourse available to us. I know $1,750 is not a large sum of money and may not be worth the hassel of pursuing. Please let me know your opionion and guidance in this matter. Thank you.
2 Answers from Attorneys
Your post is confusing, because you first state that you sold your home, and then say the closing was delayed by the seller. If you sold your home, you are the seller, and if you caused the delay I don't understand your desire for recourse.
If you meant that the delay was caused by the buyer, then the first question I have is what did your purchase and sale contract state about time being of the essence? The second question I would have is why were their delays? An attorney would want to review the entire purchase and sale contract/ joint escrow instructions to advise you properly.
It would depend upon the terms of the contract and what other facts there may be. Did you sign an agreement to extend? Did your representative advise y of the ramifications of this? Was this a rental property or were you still living in in? There are many other questions. Seems like due to the amount involved you may want to go to small claims court. You may want to pay for an attorneys time to review this matter and advise you as to who you may have a claim against. If you would like me to do so, i can for a small fee, my office number is 818 345-0123
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