Several stopgap options for time lags in closings

Q: I’m selling my house and buying a new one. The sellers on my purchase need an extension, but my buyers are ready to close on time, and are going to be kicked out of their rental and need to move in ASAP. What should I do? Where do we go when we close?

A: It’s very common to have a few days when you can’t move into a house when you have multiple closings that depend on each other. In these cases, sellers either lease their house from their buyers for a few days or they move out and stay elsewhere. If your buyers cannot give you an extension or a “lease-back” (after all, it’s not their fault your purchase won’t be ready), then you’ll need to move forward with your closing on your house and find a place to live (often people stay in a hotel for a few days) until you can close on, and move into, your new house. Now, just like your buyers are not at fault and shouldn’t be punished, you are not at fault in your purchase and shouldn’t be punished. But you do have a few options.

Since you’re not the one delaying the process, you might encourage the sellers to move forward with closing on time, let you move into the house and they can go stay in a hotel. After all, why should you be put out instead of them? That said, not everyone is reasonable, especially in these highly stressful situations, so you’ll need some other options just in case.

Another common resolution is to move forward with closing on time on the house you’re buying, but give the sellers a lease-back. You’ll have to stay someplace else, so make sure the “per diem” is large enough to cover your mortgage and to cover the hotel. Let the sellers stay in the house for some of the time and then they can move into a hotel for the rest of the time, and you can move in.

Finally, you can give them an extension while you go stay in a hotel. Perhaps they can give you a credit at closing or some other consideration for the added expense. Remember, as painful as this process is right now, it’s in pursuit of moving forward with the next stage of your life. So, I know it’s frustrating and difficult, but eventually these details will be faded memories as you get to enjoy your new home.