Paul S.  Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.)

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Rainmaker
1,520,551
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

That has happened to us one time several years ago and the buyer convinced the furniture company to  cancel the purchase, then the buyer re-purchased the same items after the closing. Very tense situation!

Apr 23, 2019 09:28 AM
Rainmaker
2,970,330
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Oh crap, is right. This one has never happened to me. But I did have a buyer change jobs three weeks before closing once.... thankfully my very pro-active lender got it resolved and done!

Apr 23, 2019 12:14 PM
Rainer
235,532
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Noooooo! That is always a bummer. I tell my LOs to talk with the buyer upfront and all of them do. If the agents as well, that must be why it doesn't happen as often as it used to. 

Apr 23, 2019 09:01 AM
Rainmaker
4,309,073
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Paul,

I think that Sandy Padula and Norm Padula, JD, GRI gave you an excellent suggestion.  We are crossing our toes and fingers and paws hoping this will be a possibility!  A

Apr 23, 2019 10:43 AM
Rainmaker
3,237,902
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Thankfully this hasn't happened tie me either representing buyers or sellers. I let each side know about these kinds of examples. Real life is not always a bed of roses. Stuff happens. Thorns too.

Apr 23, 2019 09:58 AM
Rainmaker
196,542
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

I hate when that happens.

Apr 23, 2019 09:29 AM
Rainmaker
790,971
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

I also mention it to all my buyers; stay away from add'l credit purchases until after closing, no matter how good your credit is.

Apr 23, 2019 09:13 AM
Rainmaker
723,864
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I think this happens all the time... sorry it happened to you Paul.

Apr 23, 2019 08:39 AM
Rainmaker
3,163,676
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

It has not happened to me in many years.

Apr 23, 2019 08:31 AM
Ambassador
3,041,040
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

This is my first in at least 5 years...

Apr 23, 2019 08:25 AM
Rainmaker
95,709
Scott Lawson
America's Home loans - Santa Rosa, Petaluma Mortgage Broker - Santa Rosa, CA
Mortgage Broker FHA, VA, refinance or purchase

There's often a "workaround." Have another loan officer look at the deal for a second opinion...

Apr 23, 2019 12:24 PM
Rainmaker
5,258,694
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

They should have been properly advised.

Apr 23, 2019 12:19 PM
Rainmaker
4,863,977
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

NEVER.... 

I never relied on buyer agents to do anything with my new construction deals.... I have the buyers contact info and bank info...and I read the buyer the riot act about buying a pack of chewing gum prior to closing....

Apr 23, 2019 10:32 AM
Rainmaker
2,422,940
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

They were excited about the purchase, imagined the house full of furniture and then went out and did something about it. Their thinking was sound but the timing was off. As a remedy, someone loan them the amount to pay-off the furniture loan and proceed after that....

Apr 23, 2019 09:57 AM
Rainmaker
1,276,675
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

I always cautioned... no make that threatened buyers against buying ANYTHING on credit before closing. 

Apr 23, 2019 09:46 AM
Rainmaker
1,210,129
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I've not had that happen, thankfully!  Knock on wood!

Apr 23, 2019 09:39 AM
Rainmaker
1,504,160
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

No it does not happen all that much but stuff does happen. Life is not perfect & so neither is credit.

Buyer should loose EM on this one but that won't happen. No recourse for the seller.

Apr 23, 2019 09:39 AM
Rainmaker
392,213
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

Not often but it does happen regardless of what a buyer is told - they forget. And they get excited about the "buy now" come ons that "won't be available" after closing and feel that they just have to have that couch - it matches the new place perfectly. That said often these situations can be remedied should all parties wish it to happen.

If not, may your listing pend again soon.

Apr 23, 2019 09:32 AM
Rainmaker
731,301
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Grrrrr!!!! That is one thing that really pulls my chain. I just had this talk with our youngest son over and over again. 

Apr 24, 2019 05:38 AM
Rainmaker
72,441
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans Jumbo/Conventional/FHA/VA

Thanks for the story, I don't give the talk enough.

Apr 23, 2019 04:03 PM
Rainmaker
1,477,056
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Unfortunately...but try to fix it. Maybe they still can refund whatever they bought?

Apr 23, 2019 01:43 PM
Rainmaker
2,890,027
Richard Weeks
Dallas, TX
REALTOR®, Broker

Detroit, detroit Got a hell of a hockey team Got a left-handed way Of making a man sign up on that Automotive dream - Paul Simon

Apr 23, 2019 01:11 PM
Ambassador
1,610,331
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I wish I had a dime for e very time this happens, I would be rich.

Apr 23, 2019 12:56 PM
Rainmaker
438,522
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

This most likely was a no interest and no payments for a certain amount of time. The borrowers could have thought that the loan wouldn't show up on credit until the payments were to start. But, the inquiry into credit by the furniture store was probably what triggered the denial. The furniture store most likely still has the furniture, "to be delivered after closing". So, cancel the purchase and get something from the furniture store on letterhead to sho wit has been cancelled.     

Apr 23, 2019 10:01 AM
Rainmaker
613,777
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

People are people and sometimes they just dont listen... I liked Norms response very creative and sound! 

Apr 24, 2019 01:28 AM
Ambassador
4,049,623
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Have not had it happen yet, either they return the furniture, or become the subject of a story you will write about as a warning to the next buyers who ignore your direction.

Apr 23, 2019 07:29 PM
Rainer
409,113
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Not a lot but yes it happens.   No Matter how much you school some, they think they are invincible.  

Apr 23, 2019 07:03 PM
Rainmaker
1,816,801
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Mortgaging their future on toys !

Apr 23, 2019 05:57 PM
Rainmaker
2,700,574
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Paul S. Henderson, REALTOR®, CRS I always tell buyers avoid using credit cards.

Apr 23, 2019 03:31 PM
Ambassador
2,800,009
Anna Banana Kruchten CRB, CRS 602-380-4886
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana!

Sorry to hear Paul. How many times have we all been very clear with our buyers - do not buy ANYTHING on credit or credit cards. You can buy whatever you want after closing BUT NOT BEFORE!

Apr 23, 2019 02:51 PM
Rainmaker
1,023,712
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I always have that talk with my buyers before writing an offer. 

It happened to me early on in my career. The wife when out and purchased a bunch of furniture without telling her husband, it all came out in the open at the closing table.  It was not a pleasant conversation between husband and wife in front of sellers, attorney, and lender.  

The closing was postponed and all the charges had to be credited back to the credit card. 

Apr 24, 2019 05:55 PM
Rainmaker
2,939,731
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I have this talk with my buyers on day 1, also when we put the home under contract and alos sgare storied like this of failed buyers to get my point across

Apr 24, 2019 05:22 AM
Rainmaker
2,824,561
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Only once

Apr 24, 2019 04:37 AM
Ambassador
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Yes, I had a delayed transaction once because the seller was addicted to TV home shopping. Happened not just once but twice with that particular person despite both lender and I talking to her about it. She finally stopped when the seller (REO) added per diem charges for any delays and the transaction went through. 

Apr 24, 2019 04:27 AM
Rainmaker
742,762
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Hmm, and this buyer will be let off the hook because they were unable to secure financing, as a result of their action.

And the seller and everyone else involved takes the 'hit."

It is my hope the seller is able to cash the check for the 'non-refundable' part of the deposit.  The seller did get one of those...right?

Apr 23, 2019 09:30 AM
Rainmaker
1,019,177
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

No, most of buyers in our area a cash buyers.

Jun 07, 2019 05:09 AM
Rainer
51,313
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

Being in the Mortgage Business 50 years I have seen this happen several times. I always tell my borrowers "Do not change your financial picture until after you close." One young couple went out a purchase a new car at $560. a month. At application they have no car payments. Loan was declined. I hope they liked sleeping in their car

 

 

 

 

Apr 29, 2019 09:02 PM
Rainmaker
649,956
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Yes, we have had a similar experience. Fortunately, the loan officer found another lender who would do the loan. Close call!

Yes, we always have the talk. DON"T BUY ANYTHING ON CREDIT UNTIL AFTER ESCROW CLOSES.

Apr 25, 2019 07:50 PM
Rainer
221,731
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

TELL THEM TO RETURN THE FURNITURE AND GET A CREDIT. Even if the store promised no interest no payments all of  it must go back, this solves the mistake.

 

I have a check list of what to do and not do:

1. leave all your money in the bank

2. Don't move money around

3. Don't buy furniture, a car, clothing or luxuries until I say you are clear

4. Don't loan money to anyone

5. Don't quit your job or make your boss mad

6. Do open your email every day and respond

7. Do call me as much as you want, when you want

8. Do ask for help

Apr 24, 2019 04:17 PM
Rainmaker
2,762,662
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Oh, Crap is right. I advise my clients not to buy a pack of gum ... to keep their spending status quo until the loan funds and escrow closes and they have the keys to their new home.

Apr 24, 2019 08:04 AM