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Roadblocks to a Successful Closing
By Bev Cowan
The Buyer
- Gets "cold feet" or changes mind.
- Does not give complete and accurate information on the application or provide complete support documents.
- Does not fully document source of downpayment.
- Changes financial
status:
- income: from salary to commission, pay cut, loss of job; change of job.
- assets: bought new car (i.e., adds a new payment.)
- source of downpayment
- liabilities: recent late pays, acquired additional or larger monthly debt payment.
- decides to rent present home instead of sell.
- insufficient funds for closing
- Is not happy with property condition.
- Finds another property that is a better deal.
- Hires attorney to protect interest.
- Does not sign closing documents as scheduled.
- Becomes ill or gets
a divorce.
The Seller
- Decides not to sell.
- Becomes ill, or gets a divorce.
- Is unwilling to make unexpected property repairs (discovered at walk-through, by inspection or by termite inspection).
- Is unwilling to negotiate with buyer regarding personal property remaining with real property.
- Is unable to clear title defects.
- Leaves town before signing all necessary documents.
- Is unwilling to
vacate property in a timely manner.
The Lender
- Determines that the property is not up to quality standards.
- Requires a review appraisal.
- Determines that the documents meeting closing conditions raise additional questions.
- Determines that an incomplete loan package is received.
- Experiences underwriting delays due to volume or market conditions.
- Experiences document preparation delays due to volume.
- Does not receive closing conditions in a timely manner.
- Does not receive
closing package from escrow company in a timely
manner.
The Escrow Company
- Has closing delays due to month end volume.
- Is unable to locate buyers or sellers for signatures.
- Experiences difficulty resolving title insurance requirements.
- Discovers that certified funds are not used for closing.
- Discovers that hazard insurance is not obtained before closing.
- Is missing some required documents, such as termite report, identity statement, inspection report.
- Is unable to record
the same day the documents are signed (if signed
that afternoon).
The Appraiser
- Is experiencing difficulty in gaining access to the property.
- Is delayed due to volume or market conditions.
- Determines that the property's value is less than the sales price
- Is unable to locate comparable sales.
- Is requested to
inspect the new construction home before it is
completed.
- Is requested to
inspect repairs before they are completed.
6 Dumbest Mistakes Smart People Make When
Getting a Loan and how to Avoid Them
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Everything You Ever Wanted to Know About Processing a
Loan But Were Afraid to Ask
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