I had a closing yesterday.
That is definitely something to celebrate!!
But it ALMOST didn't happen.
I was representing the buyer and we negotiated an aggressive, but fair offer. The seller's agent prepared a net sheet for the seller and he was going to have to bring close to 15K to closing. He went to the bank and borrowed the money to come to closing. This was not an easy feat during the state of the economy 2 weeks ago, but he found the money.
The day before closing, the attorney prepared the HUD statement and the seller was STILL $3,000 short. What happened??? The seller had neglected to mention to his agent that he had stopped making payments on the house. The agent had figured his estimated funds to close sheet off of his unpaid balance at the time she listed the house. The seller at the last minute couldn't find anyone to lend him the extra 3 grand - banks or relatives. What a day!!!!
My buyers were left with 3 options: pony up the extra $3,000, wait 2-6 months to see if the seller's bank would approve a short sale, wait for the bank to foreclose which COULD have been an option somewhere down the road, or walk from the house that they had already moved into (in their minds of course).
My buyers felt confident that they had another 3K worth of value in the house and were given an opportunity to be gracious to the seller who was doing the best he could in a bad situation, but not all buyers could or would be willing to take that action at the last minute.
Best to ask, "You haven't missed any mortgage payments since we listed the house, have you?"