Home Selling in 05478>Question Details

Disgruntled, Both Buyer and Seller in 05478

what is vermont law regarding a buyers bank to cancel a scheduled closing the morning of the closing? We (the

Asked by Disgruntled, 05478 Sun Jul 5, 2009

what is vermont law regarding a buyers bank to cancel a scheduled closing the morning of the closing? We (the buyers) were told all was good and had the house all loaded on the truck with no place to go!

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Jim Bellville’s answer
Thank you for the update. I just answered your other question as well.

You really need to talk to your attorney. You also really need to talk to your Broker.

There are a few ways to get this fixed, but it looks like it has been over a month since the original issue. I do not know what may have transpired since.

Call your attorney ASAP. They may be the only way of getting this fixed at this point.

Could you send me a message with your Realtor's name?

Good luck.
0 votes Thank Flag Link Fri Aug 21, 2009
I have new information. We have discovered that our realtor is the one who scheduled the closing without receiving a clear to close. She knew the week prior that there were potential issues with our buyer and told noone. Even the attorney who was handling our closing thought it was a done deal. Our realtor/broker has been unresponsive. Our pre-approved buyer was denied suddenly denied financing. Her pre-approval was based on all of her income including bonus pay. Her bank then wouldn't underwrite including bonus pay because her employer wouldn't guarantee it. Now we have received a $900 bill from the attorney for title work, etc AND the seller of the home we wanted is keeping our deposit because we didn't close which I don't think is right. Our PA was contingent on the sale of our home. Please help!
0 votes Thank Flag Link Fri Aug 21, 2009
Please post more info.
Why did the lender fail to close?
Is it a postponement?
Is if a refusal to fund? If so, on what grounds?

Did your financial situation change?
0 votes Thank Flag Link Sun Jul 5, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
If you want to know the law, I would say speak to your attorney. I hope you had one representing you in the transaction. They should be able to advise you as to your next step.

I have to ask some questions:
1. Did you have any real estate agents involved in this transaction?
2. Was the closing cancelled or delayed?

I don't know if you have a full cancellation or if you have a delay due to lender required conditions that can get you a clear to close. Hopefully it is a delay due to an update on a W-2 or maybe a repair on a window or railing that will be remedied pretty quick and get you into your home.

The general rule of thumb for deals I am involved with is to build at least a week's buffer between the financing contingency and the closing date. With the volume that most of the banks in this state are currently doing, I would like to have even more than that. It means a longer timetable to get the deal done, but it protects everyone from having this type of frustration hit them at the last second. That way I know that if there is an issue, I will have at least a conditional commitment from the bank and have time to address any issues. If there is a problem and the bank is not going to lend, it allows me the time to get my Buyers out of the contract without losing their deposit.

One recent commitment letter required about $3K in repairs needing a plumber, contractor, electrician and a mason. We had 10 days built in between the financing and close dates. We pushed the closing a day and then got down to business getting the required repairs done. Everything was done in time to close the original day, but we waited the 24 hours just so everyone could breath before getting to the table.

I would think that tomorrow, you will be on the phone with attorneys, your real estate agent and your lender.

I wish I could help you more. Best of luck!

PS. If you could email me the specifics when it gets sorted out, I would appreciate it. If there is a lender, underwriter or mortgage specialist not getting the job done, I want to make sure that I know it before one of my clients gets into a situation like yours. I also have quite a few friends in that area that are currently looking for homes and/or working as real estate agents. If I can help to protect them, I would appreciate it.
Web Reference: http://www.jimvtre.com
0 votes Thank Flag Link Sun Jul 5, 2009
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