Home Buying in 91354>Question Details

Mystery, Home Buyer in 91354

Need info re: signing docs to close escrow.

Asked by Mystery, 91354 Fri Jan 29, 2010

We are very interested in a house that already has a buyer. If this buyer is not able to close escrow, we are next in line to get the house. Anyways, these buyers have been really slow to perform, and finally today they are supposed to sign all their docs. I am wondering if they DO sign their docs today, is the close of escrow pretty much a done deal and we should just forget about the house? If the do NOT sign the docs today, then what happens? Thanks for any insight.

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7
Hello Mystery,

Great question. Once they sign their loan docs it's pretty much a done deal. I think if they don't the seller could still cancel escrow. If they signed there docs I'd say it's about 99.9% chance it will close. If you are next in line you are the back up buyer (provided the seller signed your offer as a back up). Even if they don't sign their docs, the fact that the docs are prepared indicates to me that they pretty much want the house and it may be time to start looking at other options. I have seen a lot of people get properties as a back up offer. Sometimes it works and sometimes it doesn't. You were smart to give it a shot.

Best,

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
Web Reference: http://www.thecarrabba.com
0 votes Thank Flag Link Sat Jan 30, 2010
It is my wish for you that you are working with a Realtor! You should have been looking at homes right up until the day your offer is accepted by the seller and, if a short sale, chosen to be presented to the lender for approval. If it was a short sale you would want to be looking at homes until the short sale lender approved the sale.

The process is that once loan docs are ready to be signed the buyer will meet with the doc signer and review the loan docs. They will sign them if correct then they will be sent back to the lender for review. The buyer will be instructed to give the funds needed to close escrow in the form of a cashiers check to escrow. Once the loan is acceptable to the lender it will be approved for funding. The loan will fund the next business day and the home will record in the buyers name the following business day.

You should know if this process is moving along by knowing if the buyer signed the loan docs. This call to action will surely let all concerned know if there is going to be a problem. Should the buyer sign the loan docs it is just about a done deal. There are very few reasons that the home would not close escrow.

Reasons it could fall out after signing loan docs include:
1- Home is damaged before recording (earthquake, fire, flood etc.)
2- Lender finds out that buyer lost their income.
3- Litigation against the home

Very seldom will the home not close.

Respectfully,
Tony Lewis
RE/MAX of Valencia
Realtor in the Santa Clarita Valley - Learn more about our community at http://www.TonyLewis.com
Web Reference: http://www.TonyLewis.com
0 votes Thank Flag Link Fri Jan 29, 2010
I really hope this works out for you:-)
0 votes Thank Flag Link Fri Jan 29, 2010
Thanks everyone. Yes, we are the only backup offer. If the current buyers cannot close the deal, then we're next to get the house. I really want the house, and only have a small glimmer of hope left it seems. My agent is in very close contact with the sellers agent. We are both hoping that the scale tips in our favor, and we get the house. My fingers, toes, ears and eyes are crossed.
0 votes Thank Flag Link Fri Jan 29, 2010
In this market, I would not consider a house sold until the sale has been recorded. Sounds like the buyers are about to sign loan docs. Those docs will then be returned to the lender for funding, however, there may be "prior to funding" conditions that have to be met before the loan can be funded and the sale recorded. I recommend you have your agent keep in close contact with the listing agent for a current status.
0 votes Thank Flag Link Fri Jan 29, 2010
Home Buyer,
Yes, if they sign the docs in escrow they are proceeding forward . However the one thing that will blow an escrow up is the buyer's financing, this is where deals fall apart at the last minute. Until escrow truely closes you will not know. Were you the only back up offer on this listing?
0 votes Thank Flag Link Fri Jan 29, 2010
Totally depends on how the seller wants to proceed. They can cancel but it really doesn't make sense to do so. If the docs are signed it is a very good sign the deal is done.
Web Reference: http://www.tedcanto.com
0 votes Thank Flag Link Fri Jan 29, 2010
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