Another house closing question

[Jalapeñomel]

What are the odds of a house not closing? Or better yet, what are some of the reasons, outside of failing to comply with the bank for a house not closing?

I'm trying to prep for all scenarios, so any info is appreciated, even if t seems far-fetched.

[dottyblue]

All I can think of once a contract is in place would be:
1. either party attempting to break contract (we almost walked away from the purchase of our house when the sellers refused to repair something they had agreed to in the contract)
2. the bank not approving the loan (make no large purchases before closing!), or
3. the house not appraising to the sale price and sellers refusing to adjust price.

I'm sure there are other things..

Try not to think about all the what-ifs. You'll drive yourself mad.

[daisybuchannan]

Many things could cause this to happen, but it depends on what your current position is.

Do you have an accepted offer, through inspections and negotiations, and appraisal is complete? At that point unless the mortgage falls through or someone attempts to break the contract, things should be good. At the very beginning there are many more things that could happen.

[Jalapeñomel]

Apr 24, 2017 15:23:06 GMT -5 dottyblue said:

.

I'm sure there are other things..

Try not to think about all the what-ifs. You'll drive yourself mad.

it's like all I can think about, but you are so right.

We are not purchasing anything but food and gas right now just in case. Lol

[oregonpachey]

I have a huge fear of a snafu during underwriting so I am prepping myself for all scenarios. Just don't go opening a new credit card or buy a car and you should be fine.

My realtor assured me it is pretty rare where a loan falls through.

[Jalapeñomel]

Apr 24, 2017 15:26:04 GMT -5 daisybuchannan said:

Many things could cause this to happen, but it depends on what your current position is.

Do you have an accepted offer, through inspections and negotiations, and appraisal is complete? At that point unless the mortgage falls through or someone attempts to break the contract, things should be good. At the very beginning there are many more things that could happen.

All we are waiting for now is the mortgage. We have to fix this annoying thing on our credit, but otherwise, the appraisal, accepted offer, and contracts are signed.

[georgeharrison]

This is funny to me, because I was trying to prepare for all scenarios when our condo was closing and now we are buying and same thing.

It sounds like you have done all you can for your house to close. If you are just waiting on the loan finalization, there and you are fixing the annoying thing on your credit report, I think you are good.

When is your scheduled close date?

[Gato]

I think that if you are on top of things, which you are, you will be good.

[isabel]

You should be fine. Trust your lender and follow their instructions. Also, keep in mind that some companies are better than others at getting you through underwriting quickly. Our first home purchase took forever to get through underwriting because of our lender (nothing to do with us) and I was seriously afraid we weren't going to close on time. Our second purchase was the complete opposite and we were through underwriting the week before our close date. In both cases, we closed on time. One was just more stressful than the other.

Try not to what-if yourself. You'll drive yourself mad.

[pagas]

The house we were under contract on was hit by lightning and the seller tried to hide it from us. We cancelled the contract and got our earnest money back the day before we were supposed to close.

[dottyblue]

Apr 24, 2017 15:53:29 GMT -5 pagas said:

The house we were under contract on was hit by lightning and the seller tried to hide it from us. We cancelled the contract and got our earnest money back the day before we were supposed to close.

How did you find out the house had been hit by lightning?
Save

[pagas]

Apr 24, 2017 16:08:24 GMT -5 dottyblue said:

Apr 24, 2017 15:53:29 GMT -5 pagas said:

The house we were under contract on was hit by lightning and the seller tried to hide it from us. We cancelled the contract and got our earnest money back the day before we were supposed to close.

How did you find out the house had been hit by lightning?
Save

At the final walk through, the pool remote was gone from the wall, there was just exposed wires where it used to be. Our realtor noticed it and after much investigating, we found out about the lightning. We had an electrician come out and inspect it, several fixtures didn't work, the 3rd floor a/c had been fried and the pool heater was dead. We walked.

[Jalapeñomel]

Apr 24, 2017 15:40:13 GMT -5 georgeharrison said:

This is funny to me, because I was trying to prepare for all scenarios when our condo was closing and now we are buying and same thing.

It sounds like you have done all you can for your house to close. If you are just waiting on the loan finalization, there and you are fixing the annoying thing on your credit report, I think you are good.

When is your scheduled close date?

June 1st.  So we still have time, but the waiting is no good for anxiety! 

[samanthamkm]

Make sure you have smoke detectors where they should be. Our first home almost didn't close because no one knew we had to have more detectors installed.

[Jalapeñomel]

Apr 24, 2017 16:18:38 GMT -5 samanthamkm said:

Make sure you have smoke detectors where they should be. Our first home almost didn't close because no one knew we had to have more detectors installed.

We are doing an FHA loan, and I think they check for this in the appraisal.  I'll go look right now. 

[samanthamkm]

Apr 24, 2017 17:45:40 GMT -5 Jalapeñomel said:

Apr 24, 2017 16:18:38 GMT -5 samanthamkm said:

Make sure you have smoke detectors where they should be. Our first home almost didn't close because no one knew we had to have more detectors installed.

We are doing an FHA loan, and I think they check for this in the appraisal.  I'll go look right now. 

We did FHA with our first house. That was in 2009. Had the sellers(a real estate agent's own home) not known the inspector we wouldn't have closed. He installed the detectors after the inspectors last walk through.

[oregonpachey]

Our closing was just pushed out a week due to a ln issue with the buyer's appraisal. Ugh.

[nsl]

We had to close a month late on our last home due to a freak hailstorm that damaged the roof, window glazing, and shed. That 's not really normal, though.

[my3boyz]

I won't answer your question with the many examples I have, all different from each other. It's enough to seriously stress you out. Most of the time the common denominator is a shitty loan officer. The underwriter waits until the last minute to review the file, then when they need something there's not enough time to turn it around. Most of the time if there's an issue it's a delay vs. it all falling apart.

[Deleted]

When we were buying our condo we discovered that it was actually two tax parcels, not one.  We got a letter from the city saying they would combine the two but the bank walked away.  We had to find another bank.  It was stressful but we eventually closed.  Good luck!

[Jalapeñomel]

Apr 24, 2017 20:29:03 GMT -5 my3boyz said:

I won't answer your question with the many examples I have, all different from each other. It's enough to seriously stress you out. Most of the time the common denominator is a shitty loan officer. The underwriter waits until the last minute to review the file, then when they need something there's not enough time to turn it around. Most of the time if there's an issue it's a delay vs. it all falling apart.

I do worry about this a lot, and my lender has said about 100 times that FHA loans get such a bad rap, because lenders don't actually know how to process them or wait until the last minute.  He assure me that this will not happen with our loan, but I still have that in the back of my mind.  I also think that maybe the issue will be with the seller, and in that case, we are screwed, because nothing can be done about it. 

[mrs.jacinthe]

Around here, the most common issues are mortgage or insurance related (I.e. the buyer can't find an insurance company to cover the property at a reasonable cost). Occasionally, we'll have a late title issue as well.

However, this stuff is rare and as long as you're moving steadily along and don't do something dumb like buying a new car, continue to think good thoughts.

[my3boyz]

Apr 24, 2017 20:39:26 GMT -5 Jalapeñomel said:

Apr 24, 2017 20:29:03 GMT -5 my3boyz said:

I won't answer your question with the many examples I have, all different from each other. It's enough to seriously stress you out. Most of the time the common denominator is a shitty loan officer. The underwriter waits until the last minute to review the file, then when they need something there's not enough time to turn it around. Most of the time if there's an issue it's a delay vs. it all falling apart.

I do worry about this a lot, and my lender has said about 100 times that FHA loans get such a bad rap, because lenders don't actually know how to process them or wait until the last minute.  He assure me that this will not happen with our loan, but I still have that in the back of my mind.  I also think that maybe the issue will be with the seller, and in that case, we are screwed, because nothing can be done about it. 

I have never had a deal fall apart because of the seller. I've had sellers not finish all their inspection items in time and everyone was scrambling to find a solution but the buyers didn't lose the house. As long as you are staying on top of the lender and there is action and communication every few days you will probably be just fine.

[Jalapeñomel]

Apr 24, 2017 20:55:45 GMT -5 mrs.jacinthe said:

Around here, the most common issues are mortgage or insurance related (I.e. the buyer can't find an insurance company to cover the property at a reasonable cost). Occasionally, we'll have a late title issue as well.

However, this stuff is rare and as long as you're moving steadily along and don't do something dumb like buying a new car, continue to think good thoughts.

Thankfully, I have insurance already!

[FastHands]

Apr 24, 2017 16:18:22 GMT -5 Jalapeñomel said:

Apr 24, 2017 15:40:13 GMT -5 georgeharrison said:

This is funny to me, because I was trying to prepare for all scenarios when our condo was closing and now we are buying and same thing.

It sounds like you have done all you can for your house to close. If you are just waiting on the loan finalization, there and you are fixing the annoying thing on your credit report, I think you are good.

When is your scheduled close date?

June 1st.  So we still have time, but the waiting is no good for anxiety! 

I didn't realize you were under contract! Congrats!!

Our underwriting process is taking forever and driving us crazy. They said we qualified with no problem, they gave us points down for free.. but it seems like we are forever resending them new bank statements and random documents. OMG, just stamp the thing! We've been under contract for 4 weeks!

[polarbearfans]

All I can say is make sure to get your documents ahead of time to read over.

[grover]

Our closing was postponed almost four full weeks and was the longest most infuriating process ever, but we still closed. Luckily​didn't lose out on the house we were buying as a result .

[sunshine608]

We had major title issues but we were buying a foreclosure from the VA.

THe title had not cleared the VA's process and we were just waiting and waiting. Finally I did some googling and found other VA real estate listings that specifically had the procedure for closing with the VA when the title was not ready on their end. I sent it to my lender/REA and we closed a week later.

[texasharleygirl]

We are in the house buying process at the moment. The close date is 5/12, and we have had such an issue with our mortgage company/bank and the underwriter. Waiting until late on a Friday to request documents; ask for the stupidest things and then wait another week to ask for more stuff. It got so bad today, I broke out in hives from the stress!!

But I have been told we are okay and should close early , but damn. I am sick of this.

[july]

This was very rare, but we had a survey problem. We bought a home from a builder on a corner lot. The city has a building line in their codes. The original survey and inspections passed. When we went to sell, it was slightly over in a corner. Everyone was cool with it but the buyer. Supposedly she was scared by it. Our buyer wanted us to bring money to closing to pay for a variance from the city the day before closing. There were concerns she was going to walk.
Less than 18 hours before closing, I countered 1/3 of the cost of the variance and asked our realtor if we could walk if we didn't close tomorrow. She accepted. It was so stupid because it was such a small amount and caused a major headache for everyone to redo documents.