I am sure that many of you have encountered the dreaded delayed closing! It has become more of a norm these days and I am finding that the issues that are causing this are many times from someone dropping the ball in some way! So when this occurs, who pays?
The buyer can be out financially as they may be in a temporary living situation. Finding out that their closing may be delayed can cause them to have to make arrangements to extend a lease, pay additional days of rent or have to incur another interim move.
The seller may be in the same situation as the buyer with their new home. The old domino effect is now in play. Everyone along the chain is affected.
I have a first-time home buyer in this situation currently with a newly constructed home. He was originally supposed to move in mid-October and the date is now set for December 30th! Fortunately, his apartment company has agreed to extend his lease again and again but the rate has increased for him with each extension.
Going to bat for this young man, the new home company has agreed to increase the amount they were putting in towards his closing costs. Additionally they have agreed to pay for the extra expense of paying additional costs of having the inspector have to come out again. This doesn't always happen.
When the Lender/Underwriter delays however, I have yet to see anyone being compensated for their out of pocket expenses due to their delay. Many times, the deal is just dead after delays such as this.
So who pays for the delay? Sadly what I have seen is that the consumer is the one who ultimately loses out when there are closing delays. It is an unfortunate event!
Having a real estate agent represent you is so important. Being able to intervene on your clients behalf when a delay happens can help a lot. We may not be able to prevent the delay but you can bet that we are going to do our dead level best to get to a solution to assist the client.
Make sure that you are fully represented in all real estate transaction by a licensed real estate agent! We are your advocates and will be with you throughout the process. Delays do happen so being prepared just in case is not a bad thing!