We are trying to assume a VA loan, and the packet was sent to the underwriter two days ago. The seller and their agent have been difficult throughout the process, pushing to rush things while not understanding the assumable loan process.
Here’s the issue: The purchase agreement lists a closing date of 12/17 and states the sale is contingent on the approved assumable loan, meaning we won’t have to buy the home without that loan, and the sellers are motivated to cooperate. However, the title company informed us and the lender that they’ve set a closing date of 12/31.
We’ve signed an addendum for the new closing date of 12/31, but the seller hasn’t signed it and now wants to cancel, saying this is dragging on too long. Does the title company’s new date override the original purchase agreement date, given the sale is contingent on the assumable loan?
What’s in the contract is what matters. The title company has to follow the terms of the contract as well. They can suggest a date, but it doesn’t override the agreement unless both parties agree. Unfortunately, if the seller refuses the extension, this might fall apart, and you could lose any money spent on inspections and appraisal.
Does the title company’s suggested closing date of 12/31 override the purchase agreement? No, it doesn’t. The title company is just a service provider and doesn’t have the authority to change the terms of a contract signed by the buyer and seller.
Also, keep in mind that the lender isn’t bound by your purchase contract. The lender’s timeline doesn’t have to align with the dates in your agreement. To check this, look at who actually signed the purchase contract—it’s just you and the seller.