It’s a lot of work for sellers to get their home ready to sell, and it seems like a done deal once a Buyer has made an offer and all contract elements are agreed upon. Of course, you have seen a pre-qualification letter from a reputable Lender and are comfortable with that Buyer’s ability to obtain financing. Away we go!
The Buyer does inspections and you make requested repairs. The Appraiser has additional requirements and you take care of those too. We’re ready to go to the closing table – when you get that dreaded call.
There is a glitch that the first tier of Underwriters did not catch. The Buyer pays child support through payroll deduction and the TYPE of loan he is taking out does not allow any late payments for one full year. This file was randomly selected to be audited, and a 2nd tier Underwriter caught a missed child support payment.
Of course, there is a reasonable explanation for the missed payment, but the red tape to clarify and satisfy the Underwriter is not going to be easy. Is there another loan the Buyer could use? What is Plan B? Would you close escrow on your home faster if you stuck it out with this Buyer or is it time to put your home back on the market?
And at this point, the home Seller is thinking, “Why Me?” I did everything my Realtor asked and the Lender said all was good. The Appraiser said all is good. Now, delay after delay.
And the truth of the matter is that we never really know how qualified your home buyer may be. The best we can hope for is that the Buyer is using a seasoned, reputable local Lender who will find out any disqualifying factors early in the transaction.
I think we are all lured in to a false sense of security because we have all signed a legal document – an executable contract with all the legal implications that go along with the word “contract.” In reality, nothing is a done deal until we are at the closing table – and even there, things can go awry.
A home Seller can not tell a Buyer which Lender to use, but a Seller does have the right to ask a Buyer to get qualified through a Lender of their choosing. Just as a Buyer has the right to ask the Seller to leave the refrigerator, the Seller has the right to ask the Buyer to get qualified through a particular Lender.
Obviously this issue only comes up when the Buyer runs in to problems, and sometimes it’s not possible to work out or recover.
In real estate, we do the best that we can and say a lot of prayers. We can be as cautious and proactive as possible, and things may still not work out.
But at least choose a Realtor who knows what pit falls to look for, one that can recognize red flags and most importantly, choose a Realtor who is a problem solver.
If you would like a Realtor with all of the above qualities to sell your home, please do call me. 918-852-5036
Content written and published by Lori Cain.
