What proof is needed for escrow if you get laid off of work?

Asked by Covar833, 91745 Wed Jun 29, 2011

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John Arendsen’s answer
John Arendsen, Agent, Leucadia, CA
Thu Jun 30, 2011
You need to explain this to you RE agent. But I do have a question. Are you wanting to continue on with the escrow and are afraid that if the lender finds out you lost your job they'll stop the loan proceedings? Or do you want to cancel the escrow because you lost your job?. If it's the latter I can't think of any reason why anyone involved in this transaction would want to move forward.
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Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Thu Jun 30, 2011
Wow! You are now the second person I have knowledge of that has lost their job while in escrow. The buyer on our listing had been 9 years with the same company and still got cut in their 2nd quarter layoffs. I discussed this with my seller and he was not willing to even attempt to keep her deposit. He said, bad enough she lost her job. We did not need any proof, because she was clearly upset about losing both her job and the opportunity to become a homeowner.

Experience shows that most sellers will do the right thing in this situation, even without a note from your employer. However, if you are dealing with a seller who is demanding proof, your layoff notice from work should suffice.

Good luck in finding a new job, regaining your stability and re-entering the housing market. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
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RE/MAX Palos Verdes Realty
424-2HELP12 (424-243-5712)
0 votes
Sally Grenier, Agent, Boulder, CO
Wed Jun 29, 2011
Not sure what your question is exactly.
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Sinead McAll…, Agent, Oceanside, CA
Wed Jun 29, 2011
Hi Covar,
First of all I am sorry you lost your job. That is truly horrible and I hope you find another soon. As far as escrow is concerned, as someone who has 7 years experience as an escrow officer I can say that we never verify employment. If you are looking to cancel escrow due to job loss, I would talk to my real e3state agent about what the contractual consequences would be at this point. If you need any further assistance, feel free to contact me directly.
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Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Wed Jun 29, 2011
Are you saying that you are buying a home, you are in escrow, but all of a sudden you have lost your job?

Well if you were using financing, and still have your financing contingency, and you needed your employment in order to qualify, then you will not be approved for the loan and you can back out of the contract because of that reason and still be able to get your earnest money back.

If it's past that point, you've already removed your financing contingency, the seller may be understanding anyway as losing your job would be pretty disappointing if you were in the middle of buying a home (disappointing, but fortunate you found out before you bought the home/got stuck with a mortgage payment for 30-years). I would discuss with your real estate agent how this change in your purchase contract.

As far as proof that you got laid off of work, your employer should be able to write a letter stating the information, as well as your mortgage loan officer can contact them and ask if you work there and they'll confirm when your last day was/will be.
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