How was it discovered ? is it in the contract, one instance is one to many.

Is this a bank or secondary lender playing games

( sounds like secondary lender) that owns home to me

I have seen $125 per day fee being charged, but when the closing is delayed because of the lender a few days that's ok...

We had a complete condo conversion this way 284 units !!! they said it was the attorneys fee that was charged back to the developers yea right.

It was a bunch of Bull because most if not all used the developers lender...and....attorneys included....

Sharron, my foreclosures typically charge $50 per diem. It may be a way to keep everyone on track. The one I just closed on was that way so I stretched closing out a little past 30 days to make sure buyer wasn't going to have to pay it in case the lender or underwriter drug their feet.

It does not make sense to me because the buyers are seldom dragging their feet it is on the lending side, but that is considered the buyers problem as it is their lender. Just do an email or phone campaign to constantly check to make sure everyone is on schedule. Crack the whip.

Sharron,

I sell a lot of REO's and that is standard practice.  Just make sure that you have ample time for closing before you sign the contract.  

Another problem you will run into is the bank might take a week or two to get you the signed purchase agreement back to you.  This will slow the process.  Just tell the buyers lender to proceed as if they have the signed docs.  You can send them the agreement that is signed by the buyer to get started.

More than likely you will find that it is going to be the sellers (the bank) that is dragging their feet and will take closing out past the agreed upon date.  Unfortunatly this is little you can do about that.  I always say I am going to write in the other provisions that if the seller does not close on the closing date that we will charge them a $100 per day per diem.  Haven't done it yet, but my guess is they wont accept it.

A HUGE concern from reading your post.  You state that it needs new furnace and CA.  Is it currently functional?  Is it even in the home??   If the buyers lender does not deem the house as livable, they will not lend on it!  So if there is not any kitchen cabinets, bathrooms, furnace/ca or any other serious damage to the home, they might not lend on the home.  If the furnace/ca is just old but still functional (or at least in the home) then you should be fine.  I would run it past the buyers lender first.

When you get this put together, get the title company info from the selling agent and follow up with them on a regular basis.  You have to babysit these people to make sure they do the search in a timely manor.  Also check to see if they have the Sheriffs deed back from the Sheriffs office.  I have had that hold up closings many times.

Hope this helps

Joe Real Estate

Sharron, yes from AZ as well. I've seen it at 50 and 100 per day.

I've been told and seen that if the bank and buyer's lender are the same, such as Wells for instance, if the lender delays the close, they usually will waive the per diem.

Always get ample closing time and it's a good idea to inspect that property thoroughly and make sure lender has underwriter on speed dial and underwriter is not going on vacation etc.  :)

I had it happen once. As it was the lending bank's problem - they didn't get the loan processed fast enough, and not because there was anything wrong with the buyers, their credit scores, their bank accounts, or anything else - the bank picked up the tab. I also had a private seller try to do it to me a few months back. We knew he wanted to close quickly, so we put a 4 week close date but said we could probably close in about two weeks if we had to. He came back with a two week close date and wanted to levy a $100 penalty for every day beyond that date we didn't close. Needless to say he didn't get it. In fact, we decided we didn't want to work with him after all, and withdrew the offer. I hope we're not about to see a trend.

Yes It is standard ,it can be waived but only for a good reason , The information on Per Diem  charges can be found in the information ,addendums etc that the buyers have to sign when making the offer.

Everything is Negotiable , there is no such thing as standard in this business...

No bank or mortgage company even a REO  wants to blow up a deal.

You represent the buyers then the buyers agent can make any modification to there request it part of being a buyers agent..

Vance