Should a buyer allow a seller to remain in the home after the closing?
Usually not a good idea.
The parties enter into what is known as a “Holdover agreement” or “Post-closing possession agreement.” We don’t normally recommend these agreements, but they are sometimes necessary. Hopefully, the following will provide you with some insight as to why these agreements are not normally recommended by our firm:
- The deal gets done sooner rather than later.
- The buyer leaves a hefty sum in escrow to cover “rent” and property damage.
- The seller needs more time to move or refuses to leave as scheduled.
- The escrow money is not enough.
- The seller causes serious damage to the property.
- Legal action is required to recover possession of the premises.
- Legal action is required to resolve a dispute over the escrow funds.
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to speak with a real estate attorney.
Some of your options:
1. Do something:
-Call your lender and try to arrange a Loan Modification, Refinance, short sale, or Deed-in-Lieu of foreclosure.
-Loan Modification- A Loan Modification is a permanent/temporary change in one or more of the terms of your mortgage loan. Ideally, this will result in a payment you can afford. (You might able to do this yourself).
-Short Sale- A sale of a house for less money than is owed to the lender. Ideally, the lender agrees to accept the proceeds of a short sale and forgives the rest of what is owed. Some lenders are offering a cash incentive to homeowners if they are willing to short sale their home. You will likely need the help of a R.E. Broker & a Real Estate Attorney.
-Deed-in-lieu of Foreclosure- (May only be available after a failed Short Sale attempt). Ideally, the lender accepts ownership of the property in place of the money owed on the mortgage. You will likely need the help of a Real Estate Attorney.
-Consult with an attorney regarding:
-Foreclosure Defenses- Such as a Lack of standing, TILA violations, RESPA violations etc.
-Bankruptcy- Such as Chapter 13- which is a type of “reorganization” used by individuals to pay all or a portion of their debts over a period of years using their current income. The most important thing about a chapter 13 case is that it may allow you to keep your home if you can make the payments which the bankruptcy law requires to be made to your creditors.
-Deficiency Judgments- Generally, a judgment for the amount a homeowner owes the lender after a house is foreclosed upon and sold by the creditor for less than the actual amount still owed.
-Watch this New York State Bar Association video: http://220.127.116.11/peopleslaw/SaveYourHome.htm
2. Do nothing:
-Walk away (OR)
-Stay in your home until you get evicted.
-Pay or go calculator: http://www.payorgo.com/
We believe most people should consider contesting the foreclosure of their home. We were recently successful in getting a foreclosure action stayed. We hope to get it dismissed, or force the lender to do a loan modification.
Mineola Foreclosure Attorneys
Call The Law Firm of Vaughn, Weber & Prakope, PLLC, at 516-858-2620 to speak with a foreclosure defense attorney and/or a bankruptcy lawyer.