Seller Exception

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This topic contains 1 reply, has 2 voices, and was last updated by  TTrumble 5 months, 3 weeks ago.

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  • #42631

    Blessed07
    Member

    Hello!

    I am very hurt and disappointed so if I come across mean forgive me.

    Let me start off by blaming myself for a mistake I made when I accepted a counteroffer. The seller put in their counteroffer that possession was to be 3 days after closing. I accepted the offer not knowing that NACA requires the property to be vacant “24” hours before closing for my walkthrough.

    Since I was none the wiser, I accepted and my realtor sent the signed contract to my MC. I went under contract on June 2nd and my realtor got the ball rolling. I gave my earnest money and had my NACA approved inspection all by June 7th when BOOM! I was told that an addendum needed to made for the 3 days. I was confused and in full panic mode. I asked my MC why the seller couldn’t have the 3 days after closing and if an exception could be made. He stated that he has never seen an exception be made for this rule.

    In the meantime my realtor stated that the seller needed the 3 days because she could not afford to move before settlement. The seller stated she has a lot of heavy equipment and needs to have professional movers. It made sense to me so I decided to share this with my MC by email. He then forwarded my email to his office manager. This was almost two weeks ago by the way. So the email game between me and my MC began (he was very diligent I must say. He is after all listed in the topic on good counselors). It wasn’t until today that the office manager reiterated the property must be vacant.

    I honestly don’t think she even read the emails my MC had sent her or the other email I sent her. I was so disappointed and confused so naturally I went to google. LOL. What I found is that outside of NACA it is common for sellers to need time after closing and it looks like some sellers ask for way more than 3 days.

    Is there anyone I can go to above the office manager? I understand why NACA wants the property vacant but cant they give the seller a break. If the program is built around helping people where is the help? She cant afford to move! It seems harsh to just say oh well. I mean she has been very accommodating to me being a NACA member compared to how other seller/realtors have treated me. Apparently NACA is like the plague here.
    If anything can someone explain what the reason for this rule is. Doesn’t someone from NACA come to the walkthrough we me? They will see that the property is vacant. What is the real issue?

    Sorry so long.

    #42676

    TTrumble
    Member

    Hello Blessed07,

    The reason for the vacancy upon closing rule is based in the requirement that the property be owner occupied and the repairs/rehab that may be funded through the NACA loan.

    Allowing the seller to still be in the home after closing prevents you from actually taking physical possession of the property. But it leaves you on the hook for any liability if the seller has some sort of accident, damage occurs, or the seller should remove appliances, etc. that were supposed to be included with the house. (We’ve seen it happen.) That’s why the property must be vacant and a walk-through done by the member the day before closing.

    Additionally, any repairs or rehab that are funded through the loan cannot be started while the seller is still occupying the property.

    And finally, there’s that guy who tries to pull a fast one by “letting the seller stay a few days” as a smokescreen for their real intent, which is to violate the owner occupancy rules completely and use the house as a rental property. They think if the seller doesn’t move out immediately, nobody will notice when they do leave and the new owners rents it to somebody else.

    By the way, you’ll find that any program that has an owner occupancy requirement will have the same rule that the property be vacant at closing.

    I understand the predicament, but I’m afraid I just don’t have any viable options for you.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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