I am a merchant marine and I am trying to but a home and I won't be at home when the the mortgage company wants to close on the home,I have not signed anything but they are saying that if I don't close on a specified day that I will be charged $100 a day until I close on the home,is this a legal practice?Can you help me?They knew my situation from the beginning and it doesn't seem fair.

Is the mortgage company making you pay this $100? or the seller of the property? The only extra fees that I can think of that you might would have to pay your mortgage company if you do not close on the property is maybe a lock extension fee or if you closed a certain time of the month your pre-paid interest could be higher than expected. I have seen where several sellers (mainly foreclosures) do charge a per diem for closing after a certain date. If you have a real estate agent involved I would contact them.

Is this the mortgage company/broker charging you? Or are they saying that in the contract the sellers are charging? If the latter, its legit as some sellers will allow beyond a set closing date provided a per diem daily charge is applied. If the mortgage company/broker is saying you have to pay them (as in the mortgage company, not the seller) then that doesn't sound right.

The Seller may be a RELO company that charges a per diem if the closing does not occur as per purchase agreement.  You should get your Realtor involved, assuming you had one that acted as your buyer's agent on your behalf.

It is very common for short sales and bank owned properties to carry per diem charges. I have seen that in almost every ratified contract lately. I think all auction properties have per diem too. I have never seen this on the purchase money side though.

Getting in contact with the real estate agent is going to be your best bet.  They should be able to plead your case as to why you are not able to get home in time for the closing and get your contract closing date extended with out the per diem charges.  Make sure the date that you radify your contract to that you will for sure be home to sign or else they may start to charge the per diem charge to you.

Mike,

The first problem is that you said you didn't sign anything. If that's the case you're not going to be charged $100 a day by anyone. If you have signed anything, and as mentioned in previous answers, the sales contract may hold a clause that requires a daily per diem until closing if the contract closing date isn't met. This is very common in real estate sales contracts to encourage buyers to move through the purchase process as agreed and also works for the buyer if the seller holds up the closing.

I hope you're not sailing anywhere near Somali these days. Sounds odd to say it but watch out for pirates!

I would agree with the prior posts.  I would add a comment.

You do not have to be physically present at the location of the closing agent.  The closing documents can be emailed to almost anywhere in the world, signed in front of a notary and returned overnight (FedEx, UPS, DHL, etc.) to the closing agent.

Also being your a Merchant Marine, you may be able to close w/ a power of attorney assigned to a family member to close if your place.  Possible option to check out, to help. 

That is a good point Adam. I closed a refi for a married couple that were both in the Army and the husband was in Iraq at the time settlement. The Army has a specific power of attorney that is actually recorded in property records so either spouse can sign on behalf of the other when actively serving. My borrowers already had it recorded from the purchase of their home so it was a piece of cake to settle the refi.