Mark knows exactly what he wants from his first real estate purchase. After planning and saving to buy a two-bedroom condo on the near south side, he is positive he found the perfect unit in Pilsen.   

He researches neighborhoods and asks friends about their homebuying experiences. He only wants to work with the best, so he scours Google and Yelp to find top-rated real estate brokers, inspectors, and closing attorneys. That’s how he finds us. Our first meeting is on a call scheduled through our website. 

I hear the excitement in his voice as he talks about the property. It’s just off 18th Street. The sellers are a family of four. The space has “good bones” but is overloaded with furniture, clothes, and toys. It appears that the sellers made only basic repairs and no upgrades. The asking price leaves room in his budget for minor touch-ups, but he still needs to save for renovations.  

The next day, Mark hires our firm to represent him. A planner, he appreciates our process with detailed emails, checklists, and timeline reminders. Plus, he and I touch base at every step.  

Everything is on track to close on a Friday morning—just as he planned—a few days before his lease expires on his apartment.  

The Monday before closing. I receive a phone call from the sellers’ attorney. The seller’s loan for their next house is denied, and they can’t move out on Friday. They have nowhere to go. 

Seems the sellers don't have a contingency plan or family in the area. Nor can they afford a hotel and storage. They are applying for a loan with another lender, and asking questions that no one wants to hear this late in the game, “Can we delay the closing or rent-back until we can get a loan?”  

When I break the news to Mark, he’s surprised and disappointed. “But everything is all set for Friday! I have time off work, and I scheduled the movers and cleaners. Even the utilities are set.” Plus, he gave notice to his landlord, who is actively looking for a new tenant. 

Together, we discuss his options: 

No, he does not want to delay the closing—or rent back to the sellers because Mark also has nowhere to go. 

He doesn’t want to sue the sellers for breach of contract, saying “If they can’t afford to move out, they won’t be able to afford the damages. I might never get paid!”  

Legally, he could kill the contract and get his down payment back. But, he decides that he likes the condo and the deal too much to do that. 

So, he agrees to keep thinking through the options and call his landlord to see if he can stay another month. We plan to talk again later that day. 

In the meantime, I call his lender and get more rough news. Mark is locked in a killer, low-interest rate for his mortgage. The rate lock expires Friday, and the rate could go up quite a bit after that. However, the lender would look into extending his rate lock. It’s a glimmer of hope. 

I also call the seller’s new lender to see if they think they can approve what the first lender could not. The new loan officer lays out a reasonable plan to work around the seller’s issues, which gives me more hope.  

Mark’s lender calls back with some good news, Mark’s low rate can be locked in for 30 more days!  

A plan starts to come together. I call the seller’s attorney to discuss a rent-back scenario. The attorney thinks his clients will quickly agree—as their plans are in upheaval, too. 

Later Monday afternoon, Mark and I speak again—he's much calmer now. He tells me his landlord agreed to let him stay for another month for the same rent. I tell him that his lender agreed to lock his low rate for 30 more days.  

So Mark decides to close on Friday as planned and rent back the condo to the sellers for 30 days. It’s not ideal, but the sellers’ rent will cover Mark’s mortgage and more. If the sellers still don’t have a loan in 30 days, they agree that they will find another place to live or be evicted.  

I include a caveat in the negotiations: Mark is allowed to look at other properties. He can cancel the contract with the sellers if he finds a suitable alternative. He gets an immediate release of his earnest money if he cancels.  

Post-closing possession is not an ideal situation, but Mark will get his condo, his low mortgage rate, plus extra funds for all of his trouble. It’s just that it will happen 30 days later than he expected. 

True enough, less than thirty days later, the seller’s loan went through, the sellers moved out, and Mark moved into his new condo with additional money for renovations.

Ready to buy? We can help move you forward.