Home Buying in Philadelphia>Question Details

Chuck Klepcz…, Home Buyer in Philadelphia, PA

Can a VOE hold up my closing date, my buyer side? The conveyor is telling me they have to confirm the VOE the day of closing.

Asked by Chuck Klepczynski, Philadelphia, PA Thu Mar 15, 2012

We originally had a closing set in Jan of this year, but 3 days prior to closing we were told the buyer did not have enough employment history and subsequently we had to push the closing date out by two months. Now we are 10 days from closing and we get another call stating that the bank needs to confirm the VOE 48 hrs before closing and again the day of closing. This is absurd! I've had the house packed for 2 months waiting for this closing and now I'm supposed to load up several moving vans and pray we don't have an issue the morning of closing. Can this be true? Here’s more to the story, we find out last night that the reason for pushing the closing in the first place was that the buyer had enough employment, but was out of work and had a return to work date of March 23rd, which is 3 days prior to closing. This is the reason for the confirmation of the VOE. Apparently, the buyer’s agent, closing agent and lender all knew of this but never told our agent. Any advice?

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Hello,

2 different circumstances. first answer "the generic one" second "your situation"

Unfortunately, yes. the bank has every right to make sure the money it is lending will be repaid.
In the end, no mortgage no deal - usually. Banks rarely check on the day of, for obvious reasons, but ALWAYS verify employment, within 24-72 hours of closing. Smart buyers should make sure their boss or someone is availalbe to verify their employment to forestall easily preventalbe "stress."

YOUR situation. if you can settle as set for the 26th - terrific - do it and be done. if settlement is disrupted - you should talk to a real estate attorney and verify would would seem to be damages to you caused by the buying side.

it seems to me, if the buyers side did not inform you of the buyers inability to close due to unemployment, this is a dangerous - at minimum failure to disclose which might jeapardize their deposit monies. In January, in PA anyway, you could have terminated the agreement and walked away from this buyer - after returning their deposit monies - based on the inability to get a mortgage,

Now, 2 months later, with this information NOT provided, you have lost a lot of time. Preventable loss had you the relevant information.

Seems to me, if you can close 3/26 - do it. but if you cannot.... explore the legal aspect of this.

Finally - bear in mind. Buyer must agree to terminate and release the agreement and deposit. So the listing brokerage cannot release money to you "automatically" just becuase of what (seems) be an obvious buyer default.

Sometimes, even if you are "right" --enforcing that fact is the WRONG thing to do for yourself. If the buyer will not relase you, you will have to sue for default. meanwhile your homesale and future plans may be held up in "lis penens" status by virtue of a dangling court case.

REALLY seek legal counsel if you want to take the nuclear option.

Meanwhile. best wishes for a smooth and FINAL closing 3/26.

john Lonard
Long & Foster
610-742-9389
john.leonard@lnf.com
0 votes Thank Flag Link Thu Mar 15, 2012
Not much you can do at this point, mortgage companies ask for a VOE twice, once in the initial approval process and one prior to closing. Most buyers agents are on top of this because it is their responsibility to guide their buyers to a smooth closing. However if the buyers agent had knowledge that the buyer had lost his job it is his responsibility to disclose that fact.
0 votes Thank Flag Link Thu Mar 15, 2012
Well put anna go to your agent or the broker and have tthem deal with it did you ever. Get a mortgage committment from the buyers lender
0 votes Thank Flag Link Thu Mar 15, 2012
It can hold up closing, but only if buyer's employer does not respond to it in a timely fashion.
however, this is a requirement of buyer lender and absolutely nothing can be done to change this.
I would make sure your agent makes sure that buyer agent and buyer notifies employer that it will be coming thru (and when ) that they need it filled and sent back out immediately.
good luck!
0 votes Thank Flag Link Thu Mar 15, 2012
Unfortunately, you're stuck.

It's a shame that no one communicated to you the real situation, but in order for the buyer to get a loan a valid Verification of Employment must be done to that particular bank's satisfaction. All banks are different, but it sounds like this one is pretty strict.

But again, the biggest issue here is that the buyer and buyer's bank were not honest on what issues were holding up closing. If things get pushed again, you may want to consult your dates per the Agreement of Sale. If the buyer has missed dates, you may be able to cancel the contract and move on to another buyer.

Your best bet is to first consult with your listing agent. Best of luck finishing it up.

Tim

Timothy M. Garrity | REALTOR® & Consultant
U S Spaces, Inc. | #RS314897
215-829-8850 x267 - Office
267-879-2716 - Mobile
PhillyUrbanLiving@gmail.com
PhillyUrbanLiving.com
0 votes Thank Flag Link Thu Mar 15, 2012
The job of your representative is to know and to do everything to create solutions to every and all problems that arise. Rather than a can this happen question, I believe your perspective needs to be
why is my representative not in the loop & what are the best and worst case scenarios and how can we shift the options to create a better outcome for all. Focus on the solution. Get your representative or their broker to get you what you need.

If I were your agent, knowing this had been an issue it would be an area of high focus and control for me as it directly affects the outcome for everyone.

Ana Barlow, Coldwell Banker Preferred, Philadelphia
anabarlow@gmail.com
0 votes Thank Flag Link Thu Mar 15, 2012
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