Sold our home…problem with buyer's closing...please read...?

Question

We sold our home last month and went to close on it two days ago in the afternoon. The buyer was going to close the next morning. Our closing went fine. They buyer arrived at his close with his realtor and loan officer. The title company rep asked where his wife was because the loan documents stated he was married. Well, turns out his wife lives in another country and is planning to join him next year with their two kids. His lender knew this but failed to obtain a power of attorney to sign on her behalf. As they sat at the close, they tried to call the consulate of that country to see what they could do but there is a 90 day wait. So now they are going to re-submit the loan application as if he were single. There will be deception on the buyer's part. They think that they can get everything finalized in the next 3 days, but our realtor wants to put our house back on the market. We close on our new house next week and really need for this sale to close. What should we do?

I failed to mention that we are in the state of Texas. I don't know what the laws are in Texas. We are going to wait and see what happens with this buyer but will probably also put our house back on the market and see if there are any backup offers. Thank you all for your comments!

Answer 1

The lender is a total moron. That being said, I'd recommend putting the house back on the market as the realtor indicates. It can't hurt to do so, as you always have the right to accept any forthcoming as secondary to the primary, and you will have a proper back up in place. You don't state what sort of 'deception on the buyer's part' there will be, but I'd venture that the loan agent is now sitting on the hot plate, and someone is turning up the heat control knob rapidly.

If you qualify for same, I would recommend checking into 'bridge financing' so that you can close on your new home if this fiasco fails to come to fruition. Bear in mind, however, that you will be paying interest on two loans until your former house closes successfully.

It is entirely possible that the lender will be able to make this deal happen, since I would think he qualified for the mortgage based upon his own financial situation anyway, since the wife is still elsewhere.

Keep your fingers crossed here, and don't recommend that loan agent to anyone other than your very worst enemies.

Answer 2

I'd give it the 3 days and see what happens. It's going to take a lot longer than 3 days to sell your house again. If the lender thinks they can get the loan through in that amount of time then wait and see what happens. I don't think it's illegal to get a loan in one person's name, even if that person is married. I've heard of couples doing that when one has bad credit. Your Realtor can put the house back in the computer as active so it will be shown but he might want to put a note that there is a buyer but at this point you don't know if the sale will go through so you're looking for backup offers.

Answer 3

It's legal in most states for only one spouse to qualify for the loan. It's done alot when the wife doesn't work. You really have no choice but to give it the 3 days. It's doubtful you'd be able to close on anything else in a week's time anyway. If you want, put it back on the market, but don't accept any offers until after the 3 days have passed.

Answer 4

It's possible as long as the individual qualifies on his own.
Three days is not long to wait to save a deal. I would.
Meanwhile you can take back up offers if you have other buyers.

I don't know what part of the country you live in, but it's a slow market in most places.

Answer 5

Yepper, & what's GW going to do with the ninety 9,000 acres he bought in Paraguay? This has been happening for an prolonged time, it extremely is a cryin' shame. seem what that's like in Russia for the previous 2 days! in the experience that your youngster cries they take it far off from you.

Answer 6

That is loan fraud to resubmit the loan stating he is single.