Closing delayed?

Question

What's the longest an average closing has been delayed?
I THINK they said something about ANOTHER WEEK because of the financing,WHAT about the financing? I am getting really pissed...

It was already delayed because of the inspection,but now they HAVE the report & permit,it MIGHT be because of the "financing,"? WTF? I thought the loan was already approved? What does it mean when they say the loan "funds," I don't understand....we have co-signer,clear title,HAD a closing date,so WTF should I do? Tell them to 4get it or what?

Answer 1

I can only guess how frustrating it must be for you. I know it is hard but think of the good side. It is easier to deny you than it is to approve you. Someone is on your side to keep you in the game. Hang in there, everything will be fine.pp

Answer 2

It really depends on if you went through a broker or a bank. Reason bieng is brokers are bieng given a tough time due to the market in sub prime lending. Without knowing all the details the best scenarios I can describe are below... Good Luck..

Brokers:
In just about all cases brokers deal with a different lenders. Each on of them are assigned an Account Manager or Processor. The processor receives your intial application and issues a conditional approval (this usually doesnt mean much because they condition for everything under the sun), once all of the conditions are in, they forward it to a bank underwriter for the final approval. So at this point your broker and you are under the assumption the loan is approved and your moving a long nicely..unaware the file has not been seen by an underwriter. Once all the conditions or "stips" have been met, both the broker and you are ready to close and start the process. Then the nightmare begins, and unfortunatley all to ofter, the bank comes back with a whole new set of "stips" that were never heard of. So you could be getting delayed here. The other scenario where the bank comes back with more "stips" right before closing is the processor or account manager does send the file back to UW each time a new "stip" comes in. Problem with this is, it will go to a new UW each time and each UW will review the whole file again and create more of a headache. I really feel bad for buyers and brokers in this market, its a real tough time for everyone.

Direct Bank
If you went directly through a bank the above is greatly reduced. Banks usually have certified processors that can sign off on most loans as if they were the Underwriter, underwriters at banks only see select loans. If your first delay was due to a home inspection, most of the time your file is already with the closing department because the certified processor just left instructions for them to obtain an inspection of the property and needing no repairs. If this is the case and the inspection was provided and now the problem is with financing, there was something wrong with the inspection that flagged the closer to take it back to the certified processor or underwriter.

If you went broker, your best bet is just to call the broker and see what is going on. Ask to see the conditional and final approval. If a final approval cannot be provided, one most likely was never made, meaning your loan was not 100% approved yet. If you do have a final approval, work with your broker to get all the additional "stips" into the bank.

If you went through a bank, you should have received a commitment letter in the mail stating you have final approval, make sure you sent them everything. Then call your loan officer or processor to see if there was a problem with the inspection and what you should be doing now.

One final "stip" that always pops up at the end on a purchase that has been delayed- Check the settlement date in the sales contract. If your past that date the bank will want an addendum extending the contract date signed by you and the seller.. If this date has passed, get a hold of your realtor or whomever made the contract and have that drawn up.

It can be very fustrating especially when the bank always has the upper hand, they can and sometimes do come back at the very last second and say no to the whole deal...

Answer 3

It depends on the situation. I'm about to have a closing delay because of problems with the home inspection and TRYING to get contractors out for bids to repair. The loan won't fund until we get these home inspection issues resolved. And buyer and seller cannot negotiate who pays for what without bids.

Eh, contractors.

I suspect at this point, the problem is underwriting. Once all the requirements for the loan are completed, the loan goes to underwriting, this is the point where the decision is made whether the loan funds. Meaning, it goes through. It has become more complex with the subprime debacle.

Answer 4

Could be the lndr thrw out some crazy stips to the broker at the last miute. Sometimes it happens . If you get a denial letter from the lender in the mail then you know your done for. Ask your broker to se the conditional approval. That will list everything the lender has asked for and what they still need. If the reason is not on there then the broker is stalling

Answer 5

All depends on what the delays are. Based on credit? Insufficient documentation? Problem with the property? Did they ever have a real approval before?

Answer 6

Delays are not uncommon, hang in there.