We're first time buyers. We put an offer for a house in Indianapolis which was accepted in mid July, inspection completed by end of July. The seller fixed some issues, and we had a closing date set in beginning of September.
The title company told us the owner has a lot of loans tied to the title including IRS debt, and the closing will be delayed. The owner told us they will resolve everything in about two weeks, but weeks go by and we hear nothing. We reach out, but this time a new story: The owners accountant has filed his tax with the wrong social and they need to work it out (?). They request another two weeks.
Another three weeks go by, but we hear nothing. The government shutdown started, so we knew nothing was going to happen quickly. The owner offers to allow us to move in without closing, they need "just two more weeks" again. We accept this offer, put the utilities on our name and move in thinking since they let us move in, they are probably close to solving their problem.
30 days go by, nothing. We reach out to request to have a direct talk with the owner to ask what is the problem. Our realtor sets up a time with the seller's realtor, but the owner never shows up.
As of today, still no response yet from the seller or their realtor. The house has no appliances, no curtains, and lots of problems during one of the coldest December. The waiting has had a big negative effect on my partner, and they don't want to go through this again with another house.
What do you suggest we do? Are there any agencies we can reach out to get help? Is this a dead end situation and we should move out to rent?
Have possession but sale just won't close, what do we do?
byu/taviso inRealEstate
Posted by taviso
8 Comments
You really should not have taken them up on their offer to move in before closing and your agent should have stopped you from doing so. That just majorly complicated things for you. You should have treated it as a failure to close on the sellers part and gone after them for any expenses you had incurred up to that point then moved on. Now that you are in the house but do not own it, you are tenants.
This is bizarre. Loans and IRS debt can be settled by the title company from the proceeds at the closing.
You’re moved in already??
**HUGE MISTAKE!!**
Get out and start looking for another home
Move oit and cncel the contract. It will take another year to clean things up.
If I were you I would move out and pretend that part never happened.
If you have early occupancy you are renting the house basically. If the seller can’t close on whatever date you agreed to extend to, you could back out and find somewhere else to buy, somewhere else to live. Moving again is inconvenient, but really a much bigger problem for the seller.
There isn’t much you can do about their tax or title issues. If the seller has a problem with the IRS you could tell them to contact their congressperson’s constituent services for help with a federal agency. They don’t actually “do” much, but it can help avoid further delays and get the right people to look into it.
So you are living there, not paying rent and do not have a fridge or stove? Interesting situation.
Are you paying rent? I would be looking for another house quickly and move out on my own accord. Too much happening here.