The Buyer’s agent asked to extend the mortgage commitment date.... I'm not exactly sure what this means....

Asked by Beanner1, New Jersey Mon Nov 29, 2010

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5
Jeanne Feeni…, Agent, Basking Ridge, NJ
Mon Nov 29, 2010
Hi there Beanner - by asking for the mortgage commitment date be extended, the buyer's agent is asking for more time to secure it. This may simply be due to a delay on the part of the bank in processing paperwork - they are certainly in deep right now with refi activity on top of new loans, or it could signal a delay on the part of the buyer in getting in their application and other paperwork. It could also be a delay in receipt of the appraisal. Whatever the delay, it should be explainable and so I concur that asking the agent why the extension is needed is a good idea. It is not uncommon, but it is very smart to stay on top of the details, just in case the problem is more serious. If you are uneasy about the delay - and your agent and attorney will be able to advise you here - we do have status in the MLS now that allows you to indicate that a property is under contract but that you are still showing (UCS)...not a bad idea if after doing your due diligence you are uneasy.

Best of luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
3 votes
Edith Karoli…, Agent, Winnetka, IL
Tue Nov 30, 2010
Hi, there is usually a time frame in the real estate sales contract that indicates a date when the loan commitment from the lender is due for the buyer, if for any reasons the lender needs additional paperwork, or the time frame was set very short, it is not unusual for the buying side to request and extension which is usually granted, since one really wants to get the buyer to get the loan..... It usually is extended for a relatively short period of time.... See what influence that may have on the closing date.... as sometimes the closing date then consequently also will be delayed, unless the loan commitment was due much before the closing date.

Discuss with your Realtor and or your Real Estate attorney....
But it happens quite a bit!
Take care and good luck to you
Edith YourRealtor4Life & Chicago Connection
Working always in the very BEST interest of her clients
EdithSellsHomes@gmail.com
Web Reference:  http://tinyurl.com/MeetEdith
0 votes
Dan Tabit, Agent, Issaquah, WA
Mon Nov 29, 2010
Beanner1,
Your agent has your contract and should be your first stop with questions like this. As Dave & Lisa indicate this is not uncommon, but it may also mean your home is off the market longer if they don't get approved for a mortgage.
If I were your agent I would be asking a lot of questions about what the problems seem to be and if I had a doubt about them qualifying, I might request part of the earnest money be released to you in exchange for extending the mortgage commitment date. In the event they don't get approved you get something, if they do get approved it's still applied toward their purchase.
This isn't to be tried lightly. Discuss it in detail with your agent and understand it may get them to just terminate as well.
0 votes
Dave Griswol…, Agent, Bridgewater, NJ
Mon Nov 29, 2010
HI Bean, often times especially during the mortgage crisis, the banks are taking extra steps to ensure all information is correct and in order. Don't overly worry about an extension it's happening alot.
Moving forward is the key to closing. It can go wrong as it sometimes does but at this point we suggest you keep in contact with your realtor and lawyer for your updates..
All the Best
Dave & Lisa
Web Reference:  http://www.urhomerealty.net
0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Mon Nov 29, 2010
could mean they dont actually qualify for mortgage. Speak with attorney , if you are not showing for back up offers you may want to consider this.
0 votes
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