We had our house up for sale, we accepted a contract on it saying that the buyer had til on or before 9-29 to close on the home. 9-29 came and went and our realtor said that the loan company was tying up the paperwork. He said he called them directly and they said it was out of "Underwriting" and that he had received a copy of the "commitment letter". Our realtor says he has had the buyers "commitment letter" for one week and a day. As of today we are no closer to closing on the home. They (being my realtor and the title company) keep saying that they are waiting on the mortgage company to finish with it and send them the packet they need to send to the seller to sign off on. What I dont understand is why this has taken over 30 days and why we are no closer to closing this week than last week. Does anyone have any ideas what the problem could be? If you need more info and feel that you can shed some light on this please feel free to email me at bdogz6@yahoo.com
2006-10-05 10:02:18 · 7 answers · asked by susieq 2 in Business & Finance ➔ Renting & Real Estate
A lot of delays can come up when closing on a home purchase, and a 30-day closing is keeping a pretty tight schedule. You're probably not getting the run-around; sounds like the mortgage company dropped the ball somewhere and caused a delay but if there's a commtiment letter, that's a pretty good sign that there will eventually be a closing. You do have grounds to void the sale, but it's up to you if you want to or not--- if you do, you have to get a whole new buyer and that might be a pain. I would recommend you ask your realtor about adding an ammendment to the contract that says if the closing does not happen by 10-15 or something like that, the buyer pays a penalty. That would encourage the buyer to put a little pressure on their mortgage people to pick up the pace.
For what it's worth, when I bought my house my closing was delayed about 5 times. The problems are usually silly little paperwork details, like the person requesting the title search didn't fax the authorization along with the request and stuff like that. Nothing that actually puts the deal in jeopardy, just slows it down a bunch.
2006-10-05 10:10:20 · answer #1 · answered by dcgirl 7 · 0⤊ 0⤋
A commitment letter by the lender says that they are willing to lend the money subject to a few things. They are usually...surveys, home inspections, insurance binders, title insurance and a few things. These are things the lender has to have before they will fund. These are all provided by outside vendors and anyone of these can hold up the funding, not to mention the buyer's ability to get his down payment in order.
Closing thirty days from contract is fine if everything falls in line but it is kind of tight. Forty five days is very reasonable. You may not be that far away. I suggest you ask the agent what exactly is holding it up. From what you have provided, it is hard to advise you. If you found out additional information, put and additional comment to your question and I will try my best to give you an opinion.
2006-10-05 10:22:47 · answer #2 · answered by robert S 4 · 0⤊ 0⤋
I have a few ideas why it's late, but I think it's best that everyone work together to resolve the issues.
My best advice to you is to have your realtor contact the loan officer and ask him/her to be honest with the situation and work things out instead of playing the blaming game. Stay calm and find out exactly where the problem lies. It may not be loan officer's fault and getting angry at him/her will only makes matters worse.
Btw, does the committment letter provide any details? If so, there's generally a list of items needed before the bank can proceed. That can pinpoint the problems right there.
Hope everything works out.
2006-10-05 23:51:24 · answer #3 · answered by xugu 2 · 0⤊ 0⤋
Did you take an earnest money deposit from the buyer? If so, that money is now yours.
There could be several different reasons why your prospective buyer can't close. It happens quite often, unfortunately. The reason they didn't close could be because they weren't qualified in the first place. Pre-approval's are worth less than the paper they are written on. If and when you sell again in the future, make sure your buyer is FULLY approved before you accept their offer.
The average time a purchase transaction should take is 7-21 days.
2006-10-05 10:17:44 · answer #4 · answered by Justin 3 · 0⤊ 0⤋
Tell your Realtor to put your house back on the market today! If and when this buyer get's his act together and still wants to purchase the house, then fine. But right now your Realtor is NOT working in your best interests.
2006-10-05 10:06:30 · answer #5 · answered by Alterfemego 7 · 0⤊ 0⤋
don't blame the lender. Generally speaking it's the mtg broker who is dropping the ball in the process by not having the foresight to have all the documentation together before submitting it to a lender. It also depends on how credit worthy the borrowers are. If they are less than par the process will take longer than 30 days.
2006-10-05 13:44:47 · answer #6 · answered by Nicholas M 3 · 0⤊ 0⤋
everything that you have described happens on almost every real estate deal that i have ever done. i have had my real estate license in tn and in GA bought and sold homes and commercial property. commercial is easier..i don't know what the underwriters really do but they move as slow as molasses... don't worry the house will close and no one is jerking you around..
2006-10-05 10:09:07 · answer #7 · answered by Cheryl E 4 · 0⤊ 0⤋