I wrote a blog a while back that can be found here http://activerain.com/blogsview/234185/Did-I-do-something. Well this person came back to me for financing after the deal fell through with the other lender who was dishonest with my client. My client came back to me and he said that "he should've never left me in the first place". He was crunched for time when he came back to me and he told me what his time constraints were. He was not sure whether or not I could do it for him and he wanted to know for sure before making a firm decision to do business with me. I completely understand why he'd want to make sure after being freshly burned.
When he came back to do business with me it took me a total of 13 days from start to finish to obtain the clear to close. 13 days on a purchase transaction is fast by anyones standards. The fastest loan that I have ever done before this one was 9 days and that was on a refinance. Purchases typically take a bit longer because of all of the details that are involved. It is much more difficult to transfer property to someone than it is to redefine the terms of a loan on a property that someone already owns.
I was under the gun from the sellers side. The listing agent insisted that I needed to have the loan finished and ready to close by a certain date. He called me daily for status updates. I finished well before I needed to. Now that the loan is finished and has been since last week the loan is just sitting stagnant waiting to close. The sellers side is holding things up.
There was a contingency in the contract that the seller was to complete a bunch of work prior to closing. I was told by the listing agent a couple of weeks ago that all of the work on the home was completely finished and that they were waiting on me so that they could schedule this deal to close. I had just gotten the file so I put the pedal down and got it done by the proposed deadline.
Last week I got the CTC and tried to get it scheduled only to find out that the seller did not complete all of the work that he said he had. The upstairs floors were not varnished and the walls were not painted as it stated in the contract that they would be.
My client went for the final walk through this last Sunday to discover that despite what the listing agent had been saying not all of the work had been done. Initially my client was going to ask for a price break of half of the estimated cost of completion. The seller got into a small car accident this morning on his way to meet with his attorney to discuss the price break. The entire credit would be under $1000.00. After the accident the sellers attorney sent a letter to the buyers attorney stating that because the seller sustained minor injuries he will not be able to get into the house to complete the unfinished work and would like an extention. He would like to extend our closing date out to January 15th.
Several problems exist with this proposed extension. I guess the biggest problem is that after going through all of this my client has said that he will take the house as is without any additional credits so the seller does not need to do anything to the house except get his stuff out of there. My client said that he will have the work completed himself, so the seller asking for an extension so that he can finish the work does not make any sense.
Worse than that is that I used a 30 day rate lock because that is where I could get the best pricing and still realistically get the deal closed in time. Now the rate lock is expiring on the 8th of Dec. and will cost thousands of dollars to extend the rate lock till the 15th of January.
My client is willing to close "as is" on the property and the sellers are bucking... does this make sense to any of you? I mean this guy did put his house on the market ... That does generally mean that the person wants to sell their house ...right?
Now I am trying to get this closed right now. I am frantically calling the attorney's to put some pressure on them to set this thing to close. My client has told me that he will not wait until the 15th of January, he said that he will not wait past the time that my rate lock expires. He said that he is so fed up with the listing agent and the seller that if they will not set a closing date that he will just walk from the deal ...I don't blame him, there are plenty of homes on the market right now, no one should have to deal with this kind of ridiculous behavior from the seller's side of things. I just hope that if he walks from the deal that he will go through me for his financing on the next one. But more than that I just hope that this seller can get himself together and get this wrapped up.
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