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.
Long & Foster
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.
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.
Timothy M. Garrity | REALTORÂ® & Consultant
U S Spaces, Inc. | #RS314897
215-829-8850 x267 - Office
267-879-2716 - Mobile
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