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Closing an Escrow – Stress Test!

By
Real Estate Broker/Owner with Home Point Real Estate DRE # 01492725

Closing an Escrow – Stress Test!

Closing an Escrow in my opinion can sometime be more stressful than getting married. At least when you are getting married you know what date it is going to happen (generally).

Although there are smooth escrows and a good agent and good lender can ease many of the problems things still come up beyond the control of any of these people. Underwriters need a last minute clarification or documents, or something else goes wrong. Generally the weaker the loan the more likely there is to be a problem. But sometimes even cash offers run into problems.

Be Prepared:

  1. Roll with the punches. When they ask for something (documents and so forth) just get them ASAP.

  2. Be honest up front with your REALTOR and Lender. If there is a problem and we know about it we can often deal with it ahead of time.

  3. Keep cool, 95% of the time things work themselves out.

  4. Keep all the documents you get in on a PDF file so you can send them off at a moments notice. Keep all pay stubs and bank statements.

  5. Don't charge anything. Make large unexplained deposits or move money around, other than directed to close.

  6. When a real problem comes up at the last minute we can often work through it, but it might take some time.

  7. Communication is key, make sure your lender and REALTOR are committed to keeping you in the loop.

 

Don't let the stress of closing escrow eat you alive.

Home Point Real Estate is located in Brentwood Ca and provides service to the East Contra Costa County Communities of Brentwood, Oakley, Discovery Bay, Antioch, Pittsburg and beyond. Give us call regarding Buying a Home, Selling a Home, or Real Estate Investing. Find out more about Home Point Real Estate.

Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Ann - At least you know what the real problem is.  Sounds like it should close at some point.

Jul 24, 2014 02:03 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Gene,

All we can do is wait and comply if asked. I feel the same way with short sales. Even if you have sent it to them 3 times in the past, if they ask for it, just smile and say OK right away and thank you. We work for our clients and we are professionals so we get the job done. Good point about not moving money or spending anything before closing. I always tell my clients not to buy a car or even furniture. Wait and do not open any charge accounts either.

Jul 24, 2014 03:15 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Kristin  - You have a good perspective.  If I let my self get stressed over every sale it would kill me.

Jul 24, 2014 03:22 AM
Anonymous
ED WESTERMAN, Broker,

Gene,

As a representative of my client, I review the file before closing. Hopefully the day or two before. This allows the parties to make corrections or completions on time. The HUD1 is important, but sometimes not as important as the "correct legal description", correct terms of the mortgage, or other items that can go wrong. Preparation and planning is the key.
Timely article, thanks.

Jul 24, 2014 03:36 AM
#35
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Ed - I agree with a lot of what you are saying.  However, some of the last minute lender conditions are unpredictable.  

Jul 24, 2014 04:33 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I have to agree that it's one of the most stressful things & I think that it is getting worse. It seems that lenders, etc just seem to pile on the poor buyers over needless nonsense at the last minute.

Jul 24, 2014 04:34 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Lyn - Lenders are teriffied of the new government regulations and the possibility of having to buy back a loan.

Jul 24, 2014 04:38 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

When I was an agent I always said that finding the buyer and coming to agreement were the easy parts. The real work began then - and kept on until the purchase closed and the loan was funded. 

Jul 24, 2014 05:06 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Marte - The escrow is a lot of work and if and agent thinks getting a signed contract is the end of things they are not serving their client.

Jul 24, 2014 05:25 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

When a buyer seeks financing, the MLO and the RE agent should know whether the buyer might have issues. If so, they should make the buyer aware of any unexpected delays in processing, so it's important to submit a complete loan package initially so if any issues do arise,  it would be known before reaching the closing table. 

Jul 24, 2014 06:30 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Kimo,

That is the way it works in theroy, but the underwriters frequently come up with wild request that are beyond anticipation.  

Jul 24, 2014 06:33 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Certainly can be a wild ride getting to the closing table. Just have to roll with and take it a day at a time. Lately it has been all about the Lenders which is real annoying.

Jul 24, 2014 08:35 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Last minute lender requests/conditions are always stressful for buyers.  Rules and regulations are cumbersome to say the least.

Jul 24, 2014 02:41 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Bill and Sharon - You are both right.  All you can do is hang on and keep working the escrow.

Jul 25, 2014 03:37 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

Gene....so right.

I've had buyers who were also getting married the same month, but that's just messing with fire.

As the agent, my task is to be prepared and to chill everyone down. And chill more.  As prepared as I and the buyers want to be, it's never guaranteed to have something not pop up, but when it does, we deal with it and continue.  And chill.

Jul 27, 2014 11:08 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Claude - Getting married and closing in the same month!  Wow!

Jul 28, 2014 01:05 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Missed this when you first posted it. But now that I've read it, all I can say is that you're so right! We just can't control the closing date!- but if buyer and seller can lean on us to remain cool, calm, and collected, it does usually work out.

Oct 13, 2014 02:24 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

@M.C. Dwyer better late than never.  I appreciate you coming by and your comment.  Keep Cool and keep communicating.  

Oct 13, 2014 02:36 AM
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

I think we have some of the best reads out there on Active Rain. Thanks for sharing

Mar 19, 2015 01:49 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Winston Heverly thanks for stopping by.  

Mar 23, 2015 05:34 AM