Kentucky buyers pay $134 a day to keep mortgage rate on home they can't yet purchase

A Kentucky couple hoping to purchase a home have been facing an unexpected hurdle after an heir challenged the sale, leaving them paying $134 a day to keep their mortgage rate locked. Although they still wanted to purchase the roughly $670,000 home, the buyers have been unable to complete the purchase after the lawsuit was filed the day before closing.

Here's what to know

Inspections, financing, and an appraisal were all in place for an early November closing, the original poster wrote on Reddit's r/LegalAdvice. They had been under contract since late August.

However, a 30-day objection window applied to the probate court's approval of the estate sale, giving interested parties an opportunity to contest the purchase. That was when the heir stepped in. 

According to the OP, the heir objected to both the purchase price and the administrator's handling of the transaction. The adult child of one of the deceased owners, the heir filed their complaint before the objection period expired, arguing that the estate had agreed to sell the property for too little money.

The heir based their argument on an agent's market comparison. By contrast, the OP said their lender's independent appraisal had pegged the property value at approximately $679,000 — about $9,000 more than the agreed-upon price.

More background

According to the OP's understanding, the estate's administrator was the objector's grandfather, who had helped finance the home's construction and still wanted the sale to proceed. He was reportedly listed on the deed along with the previous owners, a married couple who had both died.

When asked in the comments about the property's exact ownership, the OP explained that the property was vacant and that the apparent grandfather was the administrator of the estate. At the time of the post, the OP had not been formally served, though the purchasing couple were named as defendants in the lawsuit.

Overall, the OP's biggest concern was the daily fee they were paying their mortgage company as the process played out. They wrote, "The current issue daily is holding my rate lock. Which is .02%, $134 a day to extend."

What can be done?

For help understanding their options, the OP was looking for legal expertise spanning both probate disputes and real estate in the state of Kentucky. 

Among their questions were how the grandfather's place on the deed might affect the challenge and whether an expedited hearing could be arranged. They also asked whether the lender's appraisal could help support the agreed-upon purchase price.

Commenters were divided over whether the purchase was worth pursuing. One suggested the buyers could wait if they could afford their ongoing housing expenses, while others urged them to walk away rather than face an uncertain legal fight.

"Walk away from this," advised one commenter who said they had experience working in real estate and title services. "You want this house, but there are other houses. Cut off your emotions."

Where can I learn more?

Seller disputes and financing hurdles have put other homebuyers' closing plans in doubt, too. The following stories take a closer look at other dilemmas that can hit homebuyers at the worst possible time.  

• Homebuyers gave notice on their apartment before their Montenegro seller refused to close.

• A condo buyer's deal collapsed when inadequate HOA reserves pushed financing costs near 10%.

• A first-time buyer locked in 6.375%, but the lender balked at an old electrical panel before closing.

• A homebuyer who used Affirm before closing worried about mortgage approval despite paying it off.

• A buyer learned property taxes would double days before closing, raising the mortgage payment 10%.

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