A Closing Delayed — as Usual

I had a home scheduled to close on Friday, April 24.


 It did not close because of last-second paperwork but will likely close Monday.


You might think that banks would not be so busy these days, and might be able to get their loans funded in a timely manner…but my 32 years in this business have told me that lenders are the World’s Worst Money Managers. (I don’t think that needs to be explained further considering the recent events…)


If there is going to be a problem in closing a home in a timely manner, it is seldom a real estate agent, an appraiser, a title company, or an escrow company. It is invariably a problem with the Lender – and at the last second, what are you going to do? Getting a new Lender would take weeks and new paperwork, so there is nothing for a Buyer to do but grin and bear it.


Lenders know that also.


Do you think that MegaBank, Inc. gives a damn if you are angry? Do they care if your moving van is sitting in your driveway, motor and meter clicking away? Do they care that someone in Austin, Texas is sitting with a Mayflower Van in their driveway just waiting to move to the home you are vacating, or that there is a Bekins Van sitting in a driveway in New Orleans waiting to take a family to Austin, or…


Real estate agents regularly work nights and weekends, and I can actually get appraisers and Title Reps at home on weekends. Escrow companies are a bit more “corporate” but I have had them stay late, work early and on weekends.


Lenders? No way. It was them that the term “Bankers Hours” was coined, but I think the reason is that some of those who are willing to work nights and weekends are paid on commission and have an incentive to complete the job.


Others, like Title and Escrow may not be on commission, but are locally selected by those on commissions. If they are not immediately responsive, the agents will not use them next time.


But Lenders are usually the choice of the Buyer, as it should be. The problem is that the Buyer will not know that there is a problem until less than a week before the scheduled closing – at which time it is too late to change Lenders.


I have no idea why the sale did not close as scheduled on Friday. I only know that the Lender did not fund as scheduled and there was some kerfuffle between the Lender and some insurance paper that had not been transmitted.


This time we are fortunate: The Buyer is a renter. There are not five or ten homes in a sales line awaiting this closing but when there are the phone calls between sales in various cities becomes frantic.


Now we will see if this sale closes on Monday. I had warned my Seller for weeks that closings often are delayed so they were prepared.


It is just frustrating to have everything completed by agents, escrow, title – and get stopped so often at the last moment by lenders.








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