Do you ever have the one transaction that just doesn't close? You set a closing celebration date, then it doesn't happen. Then, you get an extension--and it doesn't happen THEN either. Then, you find yourself getting kinda sick and tired of nursing a broken transaction along and you start praying that it'll finally close?! A closing that gets extended is typically still expected to actually happen, it just means that something (or someTHINGS) went wrong or were delayed, causing a delay in that glorious day when the Buyer obtains a new home and the Seller off-loads the old house. :)
There are a LOT of things that go on behind the scenes in any real estate transaction that the Buyer and Seller may never even know or care about that need to happen and are caused to happen by the various members of the Transaction Team in order for the transaction to take place. What I am referring to in this blog is the many things that can happen with the parties to the transaction, namely the Buyer and Seller, that may delay the closing celebration.
Well, closings that get extended for a period of time get extended for a variety of reasons. Here are a couple of main reasons that the Buyer or Seller cause the closing celebration to be delayed:
Buyer:
1. Hasn't gotten all required paperwork to lender or was slow in doing so
2. Buyer is slow on obtaining homeowner's/hazard insurance or waits until last minute to do so
3. Buyer freaks and changes job or quits job altogether
Seller:
1. Waits until absolutely the last minute to move all personal property out of the house
2. Doesn't complete required repairs as per contractual agreement
3. Gets major repairs that cause a lien to be placed on the property
4. Gets behind on mortgage or Homeowner's Association Fee to the point that clear title cannot be obtained in a timely manner
The main thing to keep in mind when a transaction gets delayed is to remain calm, try not to place blame, try to find a win-win solution to the challenge, be honest with everyone involved, and be respectful of others. I have seen some people get very loud and say things that are not appropriate in business conversation and I have also seen many other people handle uncomfortable situations like the above scenarios in a very professional, workman-like manner and just work to come to a common resolution to whatever problem is at hand.
The above list of obstacles to closing is a very short list that could stand to be expanded-upon. Do you have any really good/interesting challenges to closing to add to the list?
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