Buyer issues - multiple extensions & down payment delaysMy parents just sold their home recently. Since it is a seller's market, especially in the Silicon Valley, they received multiple offers and the highest offer was $35k over asking. The buyers had a short sale behind them, but their credit has improved and they got the loan without issue. Life should be great, no? Nope. They had a few "ends" to tie up and asked for a 5-10 day extension on escrow. Not a huge deal, but now the extension is nearly up and they are asking for another 2 week extension. To come up with the down payment, buyer needs to transfer his 401k from his old job to his new 401k. Apparently, this needs to be done in snail mail letter form, not by phone/fax/email. He then must request to cash out the current 401k. Why would they have waited until after closing to secure their down payment and how long should it take for him to get the down payment funds? Both parties are thinking it could become a 60+ day escrow. In the meantime, my parents may lose out on the new home they are in contract to purchase if their sellers refuse an extension because of their buyers idiotic, poor planning. It's just crummy all around. Any realtor out there been in a similar situation with down payment issues caused by cashing out a 401k?June 13 - San Jose0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.