Is it just me or is this happening to others too? On three of our recent deals, something rather unique has happened that derailed the closing at the last minute.
On all three occasions, sudden conditions miraculously appeared during the final hours before closing. When we asked why these issues suddenly became significant we were given the same explanation:
“The original underwriter went on vacation and when the replacement underwriter looked at the file they discovered the problems.”
What??? One could understand this happening once, but not three separate times over a three week period.
So I’m thinking that there are only two possible explanations for the phenomenon and they both involve billions of taxpayer dollars.
One is that the banks are so flush with cash that they really don’t need to make loans to stay in business. Why would you care about customer service when you can easily get the money for doing nothing?
The other is that they really are spending the money on vacations and the good life. Obviously, they are not using it to make loans.
Whatever the reason, the poor homebuyer is left in the lurch as the “vacation” shuffle continues. It must be nice to have such liberal time off benefits.
In the meantime, loans are lost as contracts expire.
No problem, they know where to get the money.