I submitted an offer a month ago to my seller with the financing terms marked rural development, no big deal. I called the buyers agent and cleared a few things up and advised my seller to take the offer it was 2000.00 below asking price including all allowances, and a pre qualified buyer.
Well the loan wasn't exactly the usual RD it was actually a USDA government loan through our local dept of Agriculture. The buyers agent seemed pretty uneducated as to how it worked and I have never done one.
Paper work was submitted to the local office, contracts, permits etc one month ago. I followed up periodically and when the appraisal was submitted last week I called the person in charge at the dept of Agriculture and asked her if the appraisal came out ok she assured me it did so I asked if we were on target to close the following week as stated in the contract. She laughed out loud and said noooo! It will be at least an additional 30 days?????
So on Monday of the following week I phoned her again and she said she had to order title work! I almost passed out, are you kidding me? order title work on Monday and we close Wednesday? You've had this on your desk for a month and your ordering title work today? No she said I don't know if I have time today, I'm swamped. Title work by the way has been done for two weeks but she has to order it on her forms from the title company which is practically across the street to submit for funding.
So she has funds approved and available, title work is done, appraisal done and she wants a 30 day extension on our real estate contract????
She assured me this process has actually been one of her smoothest and quickest cases. My question was this.... When I submitted the contract with a 30 day closing why did you not tell me or the other agent that there was no way we could close in that amount of time. She never once voiced this to anyone until 3 business days prior to closing and only because of my prodding! So to sum it up the buyers lease is up on his apt and he has to be out and he has no house to move into and he is livid that nobody told him this until the last minute as he should be!
Anyway, if you ever get an offer with an RD loan not through a bank make sure you find out up front a time frame! They don't think what we put on the contract is important I guess.
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