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.
The Carrabba Group
Keller Williams Hollywood Hills
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.
RE/MAX of Valencia
Realtor in the Santa Clarita Valley - Learn more about our community at http://www.TonyLewis.com
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?