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Are we not going to close?

Hi, my husband and I are selling are home to a couple who are approved for a VA loan. Inspection, appraisal and termite inspection were fine and we all signed off on the addendum at which time the lender change are closing day from Oct. 10th to the 15th, that was over 3 weeks ago. Our agent called last Tuesday to let me know that the lender said we should be good to close on the 15th and that they will give the agent and update on Friday. Friday both agents emailed and called the lender and nothing. Today is Columbus Day and VA is closed if that's what they are waiting on and our agent called to say that we will not be closing tomorrow as scheduled, everything is in storage and we have closing on our new house Friday morning. I am sooooo stressed at this point, Is this deal dead at this point?
  • October 14 2013 - US
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Answers (18)

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Here is an update, the seller of the house we are buying offered us to move in at $30 per night so since we had to extend both contracts until the end of this month and all of our belongings were over and hour anyway we decided to pay the $420. until the end of the month and if we close early we would get the unused portion back from seller. Well we now have 6 business days until the end of the month and no word on the closing, I contacted our realtor and she tells me that she has heard nothing and I emailed her again today explaining what a nightmare this is and how over this we are. If the buyers do not get a clear to close by the end of the month we are done and we will not rent a place when are house in Farmington Hills is paid for in full. I wish she would just say yes we are closing or no we are not so we can either unpack or move our things back to our house!

  • October 23 2013
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Safest bet - if the delays continue, issue the extension with a time of the essence. If they continue to delay and you're subject to the delays - at least you'll have an exit strategy in the event they do not come through. 

Tough position you're in as the seller here... cooler heads prevail and try to remove as much emotion as possible when making your decision. Easier said then done, I know! 

Best of luck to you and your husband... Side note - you can run into the same issues whether the buyer was going VA, FHA or Conventional.  don't be discouraged by the type of financing! 

Michael 
  • October 17 2013
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I would recommend reaching out to the President of the bank directly. I had a similar situation happen to clients and that seemed to get things moving on the lender side. I personally called the President of the bank, explained the situation, and they had the VP personally working on the file to get it closed properly.
  • October 17 2013
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I received word last night that we will need to ask our seller for and extension because the lender is hoping to close in a week. So this morning I contacted our agent to let her know that before we sign anything we need something more concrete to go off and that she will have to call the lender or buyers agent to get the truth of what's really happening. Here is what she sent me:
Following is the update that I just received from the lender.
 
I spoke to VA directly and per my conversation our file that was delivered to the mail room takes 2-3 days to be delivered over the 31 floors of offices.  Then once delivered the the Team leader, he or she will deliver the file to the underwriter and that underwriter has up to 5 days to complete the file and return it to the team leader.  I asked how I can track the file and I was told I can be given an underwriting updated once the Team leader delivers to the underwriter.  They told me to call back in 2 days.   
I did email the friend I know to beg for help. (no response back yet)  I will call again tomorrow pm in hopes that it will be deliver to an underwriter by then, but can not guarantee.  

Once I have an underwriter name and number I will call daily. 


  • October 17 2013
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The issue is still the same but you are being told closing will need to be delayed until end of the month.  Unfortunately, you have no assurance 2 weeks will make a difference. VA loans are one of the simplest loans to do, and qualifying issues are fairly limited. My advice would be to for you to insist thru your Agent that borrower speak with another lender to review loan. If there is a problem with loan, they should be able to discern issue(s) and if fixable.
I only do loans in TX but hopefully a loan officer on Zillow in Michigan will offer to assist sellling agents borrower by reviewing details.
I know you are justifiably frustrated but "how can lenders get away with this"? is an example that all lenders are not equally proficient, and only those that are deserve consumer and agents business/referrals. Performance matters.
  • October 16 2013
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The lender is not a party to the contract and therefore they're not "getting away" with anything.

Its possible the loan officer is incompetent, even probable; however its also possible that the LO is being ignored which also happens; example:

I tell the buyer and his agent at the time of application that I need until the 30th; agent ignores me because he's a "p***y" and asks the other agent for "a few more days", such as from the 10th to the 15th; agents then spend the next two weeks "blaming the lender" whereas the lender is working to meeting the date  (30th) he gave all along. It happens like that more than you know.


Like the others though, I'm stumped on the Washington thing. Lenders do have the option of having the VA file underwritten directly by VA but its rare and probably done only by small lenders that might only do 1 or 2 VA loans  a year but it would still go to the appropriate regional office..
  • October 16 2013
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Well, I our agent just called after speaking with the lender and she said that we will need a extension until the end of the month. WOW, what a JOKE!!!! How can lenders get away with this? All of our belongings are in storage over an hour away and we are sitting and sleeping on the floor and the guy we are buying our new house from has moved all of his things to storage until his closing date. I'm all but pulling my hair out at this point.
  • October 16 2013
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First of all I would like to say thank everyone for trying to help with answers. The property is located in Farmington Hills Michigan.
-Chantel
  • October 15 2013
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What state is property located? VA has Regional offices and unless your property is in  District of Columbia , paperwork would not go to "Washington" office. That is not an answer I was hoping to hear, as Direct VA lenders don't get "paper(s) signed by VA doing loan processing.
Unfortunately, you are at the mercy of the lender at this late date, but insist your agent dig deeper to find out specifically what "paper(s)" lender is missing.  The buyer has a vested interest in the outcome, and if their agent selected the lender, it is time for them to get some straight talk from their lender. Agents need to get to the bottom of reason for delay.
  • October 15 2013
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"Our agent spoke with the lender today and they told her that there was a ppaper(s) that has not been signed by VA and that they were over knighting the paper work to Washington and that they knew someone there that can hopefully get it signed right away"  All the VA paperwork should be signed in the initial loan application.  The lender definitely dropped the ball on this one.  Most of the VA needed items are automated, so when the lender says they "know someone in Washington" it sounds like they are trying to cover up the fact that they dropped the ball.
  • October 15 2013
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The deal shouldn't be dead unless the lender or your agent has told you it is dead. Most likely there is some delay of sorts and I would request a more detailed update from your agent to put your mind at ease. I know it can be super stressful, especially towards the end - hang in there!
  • October 15 2013
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Our agent spoke with the lender today and they told her that there was a ppaper(s) that has not been signed by VA and that they were over knighting the paper work to Washington and that they knew someone there that can hopefully get it signed right away. She said that she would call us tomorrow to let us know more.
  • October 15 2013
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I would suggest that your real estate agent reach out to the buyer's real estate agent for the answer.
That buyer's real estate agent should be in constant contact with the loan officer.  He or she can then relay the information to your agent, who in turn can let you know.

Unfortunately the lender/bank cannot communicate directly with the seller.

Good luck. 


  • October 14 2013
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Most lenders cannot give the seller too much information due to the privacy policy, however your agent should be able to call and ask some general questions.  But remember almost all of us are on 100% commission so if the communication slows down there is usually a reason for it.  Maybe a call into the loan officers manager will get you some clarity, that's what I would do.
  • October 14 2013
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This is hard for us to answer because there is a lot that we do not know about your situation. I recommend trying to contact the lender directly to discuss the situation so you can be enlightened of what's going on. This would be the best way to figure things out. I hope this helps and good luck with the closing of your house!
  • October 14 2013
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Your agent needs to contact the loan officer or branch manager and state " my seller is closing on their house on Friday, and is there any reason you won't be able to close their buyer by Thursday?  The longer the person takes to answer the question, the more likely there may be issues. Hopefully the answer will be "no, everything is ready on our end"  If not rep needs to be pressed for honest direct communications, as time for "lip service" has passed.
Let us know outcome.
  • October 14 2013
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Only the loan originator at the buyers lender would be able to answer your question.    There are hundreds of things that can cause delay that range from harmless to deal breakers.   
  • October 14 2013
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Understand that the loan comes from the bank/mortgage company and it is backed by the VA.  Does not matter that it is a holiday and that the VA is closed.  That being said the lender should be in better communication with the agents and his/her client, your buyers.  I know I am working today as are most loan officers so there is no reason why your agent can not get an update from them today.
  • October 14 2013
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