I am so frustrated with the lending situation I could scream. What is it with them? We are two weeks late closing today on a sale and there is no reason for it except intentional delay as far as I can see.
Golden Buyers, Golden Home, Just underwriting nightmares? The loan officer for the loan told me today to figure a minimum of 60 days on any closing right now because of the delays in getting anything done.
Are you all having the same problem or is it unique to Arizona?
No, it is not unique to Arizona. I have the same problems. The delay may not be intentional I see two reasons for the delay. One is lack of staffing. When the financial crisis hit lenders let go many processors, underwriters, etc. Each employee left has many more files to work with. Secondly, most loans will sold to the secondary market. The secondary market is gunshy about buying mortgages. Now there is an extra 2 or three layers of quality control and underwriting. The lender wants to be absolutely sure they will not have a mortgage they cannot sell. I only half jokingly tell my borrowers to be prepared to give the lender anything, including DNA samples, SAT scores and 10 years worth of tax returns.
It depends upon the financing. If it is an FHA 203(k) you'll be hanging out there for 60 days. I am getting closed in 40 - 45 days and that is FHA. Alot of it has to do with the Loan Officer and if he is on top of the file or not. When did the file go into the lender? If you are two weeks late, the seller isn't going to hold on forever unless there is a good explanation.
I had an agent tell me yesterday that an attorney is taking 8 months to close files that he can get closed in 6 months. I told him that I see files closing on short sales in under 3 months closer to 2 months.
I'd get on the phone and find out the true status.
I am of the opinion in this case that Paul is probably close to the truth of things. I have a sneaking suspicion that this lender hasn't been able to find an investor who will guarantee that they will buy this loan after closing and they either don't want to get stuck with it or they simply don't have the money themselves to fund it.
Barb, the sellers are very frustrated and so are the buyers. But in this case the sellers would be foolish to let it go at this point unless they have a cash buyer waiting. This is a manufactured home and lending is really getting hard on them. I have had three lenders notify me this week that they won't do ANY existing manufactured homes by Dec. 1 and one that said they would only do new homes after Dec. 1. So, unless this seller has a cash buyer sitting in the wings waiting, they had better wait it out.
I don't sell much residential, but what I have done this year has been difficult in getting closed on time, or at all. It seems the lenders have no respect for the buyer and sellers contractual agreement in respect to time is of the essence. Maybe the lender should be required to put up earnest money if they commit to approval of a loan, and if they don't perform, lose their earnest money for defaulting on the loan funding terms!
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