Ditech's Chapter 11 can cause unexpected closing delays.

By now you probably have heard that Ditech Financial Filed for Chapter 11 Bankruptcy protection.  While this is not a blog about Ditech it is an example of things to look out for in your day to day Real Estate transactions.

If you have a listing that has a Ditech mortgage- Make sure the settlement agent orders the pay off early. There can be delays.

Here is an email I was forwarded this morning for a deal with a contract date of Friday the 21st, and moved to Monday:

Still no payoff and I'm still on the phone for another half hour trying to get it. Remember, Ditech is in Ch. 11 Bankruptcy. They keep bouncing me back and forth from different departments. No, you can't just punch the payoff request in over the phone (I tried) 

While this is typically not a big concern for most transactions, it is a good lesson for all of us.  As the buyer's "Mortgage Guy" there isn't much we can do since we are so far removed from the seller, but it explains the silence we have experienced over the past week trying to get this one to close.

Lesson 2: Communication.  A dozen emails and a few phone calls  later (not to mention a panicked email from me at midnight to be sure we addressed this first thing this morning) I finally have an answer. Keep the lines of communication open for all involved, pretty please.

Lesson 3: It feels like no one is paying attention to contract dates but me.