We are seeing a lot of contracts where the closing date has been extended, however there were other contingency time periods that were not extended. This has caused issues for our clients and put escrow at jeopardy.
Whenever you need to extend a closing date, be sure to consider the other contingency due dates, particularly the financing commitment due date. Just because you amend a contract to extend the closing date, the finance commitment is still at the original due date. If the loan commitment time frame needs extended BE SURE to do this at the same time. The last thing we want to do is put the Buyer’s escrow at risk.
This also goes for revising the type of loan. Whenever a loan type changes an amendment needs to be completed because the loan type is a term of the contract. At that point, consider that you may also need to extend the time for closing and the finance commitment due date. If you are moving from conventional to FHA or VA to FHA, etc be sure to include VA / FHA Amendment as well.
Florida Realtors has a Contract Extension Addendum that spells out most of the contingencies. This may be a form you want to consider using because it reminds you of all of the potential consistency time periods that may need to be extended. Extension Addendum to Contract (EA-2)
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