Legal Question in Real Estate Law in Pennsylvania

We are due to make settlement on our new home tomorrow. Unfortunately, the underwriter for the Mortgage Insurance company is dragging her feet. All of our paperwork is very detailed, we have the appropriate funds, make good money and show we can afford the house and we both have 790 credit scores. Our agreement of sale states that the seller (bank owned) has the right to cancel the sale if the closing date is not met. It also states we can ask for an extension but needs to be at least 7 days notice. We did not request an extension because no one expected it not to get done. We have tried pushing our mortgage broker and he in turn has contacted the lender's account rep who all claim they are "bending over backwards" to get this done. We feel that we are just being pacified at this point and really do not know what will happen. What are our options???? Any advice will be greatly appreciated.


Asked on 10/25/12, 10:09 am

1 Answer from Attorneys
Miriam Jacobson Retired from practice of law

Is it the mortgage insurance company that is dragging its feet, or your lender, or a title insurance company?

Without knowing details of your matter [and not wanting to receive them], I would suggest you contact the bank seller directly in writing to explain the issue and ask for the extension. There's nothing that prohibits you from asking for the extension.

If you have any written emails or letters from the party who is delaying your settlement, include those with you request for an extension of the settlement date.

Banks generally do not want to hold on to properties and are interested and motivated to complete settlement.

THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

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Answered on 10/25/12, 1:13 pm


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