I wish that closing delays were very uncommon, but they are not. I have seen wires delayed for several hours due to technical issues, personnel issues, homeland security issues, or whatever. I have come to the conclusion that these delays are more for the benefit of the funding company holding onto money longer than they need to to save a few dollars of interest by not drawing on their warehouse line until the last possible moment.
I have never seen the delay go past a full business day either, though. A full week could open the offending lender up to an investigation.
Thank you all for your advice. If it is more of the same tomorrow and nothing happens, I will contact the Bureau of Real Estate (BRE) and Dept. of Corporations as suggested.
I will provide an update tomorrow for those of you interested in the outcome.
Rick Otto and Associates
Real Estate Sales and Property Management
Have they said anything about their solution? Or are they just letting the deal die?
A mortgage banker funds their loans with their own funds or a warehouse line (a large equity line). These funds/lines are paid back as the loans are sold to investors.
If you lender has a pipeline that has exhausted their funds or equity line, you may, likely be waiting for them to replenish their ability to fund.
This is a clear example of keeping lines of communication open. The lender should be telling you all what is exactly going on and why the wait.
Demand an answer. It may not change the situation, but, at least you will know what is the real story.
As others noted, sounds fishy. Seems lenders always make up ridiculous stories to cover themselves.
I have never heard "the system is down" so often in any other industry.
I hope it pans out for you.
Mario Pinedo, CCIM
BRE Broker 01118365