Home Selling in Denver>Question Details

dgebelhardt, Home Owner in Denver, CO

Loan Objection Deadline

Asked by dgebelhardt, Denver, CO Mon Apr 28, 2014

I'm selling my house FSBO and everything has gone smoothly until recently, when we had to amend the closing date. The buyer’s original loan objection date has passed and the agent did not request a change to the Loan Objection Deadline when he submitted the “amend-extend” for the closing date change. Now the agent is telling me that the buyer’s lender is making him re-apply for the loan because his CHFA rate lock expires before the new closing date, and he needs to change the loan objection deadline to 29 May (3 days prior to closing vs. the 2 weeks in the original contract). I told the agent that I need an updated preapproval letter, and that the loan deadline will be no less than 2-weeks before closing. The agent said that he cannot guarantee an approval will be completed by that time frame. This doesn't sound right, and I believe the buyer may just want to have an option to terminate the contract without any recourse. Is his request legitimate?

Help the community by answering this question:



This is one of the many things that need to be monitored by a professional. I have often seen deals fall apart with FSBO's. In this market, even we as professionals have to dig deep to advise sellers in making the right decisions. I rarely see loan approvals 2 weeks before closing these days unless the closing date is 45 to 60 days out or more. If all you wind up with is sleepless nights and much anxiety, you can feel blessed. Hopefully this FSBO decision does not cost you time, $1000's of dollars, mitigation or a law suit dragging out for months to come. Always use a professional. The old legal saying applies here as well - 'He that represents himself in court has a fool for an attorney'. Always use a professional. It is well worth it for many reasons. All the best.

0 votes Thank Flag Link Sat May 10, 2014
say professional again.
Flag Mon Feb 8, 2016
The other agents have given sound advice/comments below. I would only add... continue to market your property for sale and try to get a back up offer.
0 votes Thank Flag Link Thu May 8, 2014
I guess the big question is how long have they been under contract? With me for a CHFA loan we typically are looking at a 30 day close from date contract was accepted and set the loan objection for the same day as closing, the reason we do this is because the day before closing we do a "soft pull" on credit to see if they opened any new credit accounts during the process because those can kill the deal. I am however conused as to why he has to reapply for the loan, because if the lock expires prior to closing they should just extend the lock not have to reapply for the loan that is how CHFA does it, so my guess is that the lender may be lying about that as far as reasoning to why they need the extension so you may want to ask about that prior to accepting the amend to extend. I hope this helps and feel free to call with any questions/concerns you may have.
0 votes Thank Flag Link Tue Apr 29, 2014
If you are dealing with a CHFA loan, then yes for sure it could take longer. These are the types of things that a professional listing broker would be helpful with, vetting out the lender and keeping your dates on track (including calling the broker when the loan objection date passed). If it has passed then you could possibly keep the Earnest Money and sell to someone else, but if this buyer is still wanting to buy it might be best to stay the course. Best of luck.
0 votes Thank Flag Link Mon Apr 28, 2014
How can we know? It could be legit, it could be a stall, it could be that they are scrambling to get approved and don't really stand a chance. Delays happen all the time, but without someone knowledgeable on your side of the transaction to ask the right questions, and read between some lines, it's just not possible for anyone here to know.
Why are they not approved by the original date? What issues are causing the delay? Can they satisfy the lenders concerns or are they starting over with another lender, or loan type or are they just throwing a hail mary pass hoping something comes together?
Part of an agent's job is to vet the pre-approval letter, the lender, the buyer's qualification and capacity. Taking your home off the market for an extended period can cost you a real buyer. If the market changes while your tied up with someone who won't qualify, you may lose value due to less interest or higher rates or changes in the local economy.
Even the best agents run into similar troubles, but they have experience to help them sort it out quickly and advise the seller's what would be in their best interest.
Let us know how it turns out.
0 votes Thank Flag Link Mon Apr 28, 2014
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer