Profile picture for ge.apple

How long can we delay beyond the closing date?

I'm buying a property and nearing the closing date.

The mortgage lender is delaying providing the mortgage. So, what rights as a buyer I've if the mortgage lender takes time beyond the agreed closing date.
Normally, how long can the mortgage lender delay before the seller panics?
  • June 11 2009 - US
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Answers (4)

Best Answer

Since there is a settlement date on your purchase contract most lenders will priortize these transactions over refinances to ensure they close on time.  If you go beyond this date, whether because of lender delays or not, there will need to be new date agreed upon in writing and provided to your lender.

Is your rate locked?   When does that expire?

There could be a few reasons for the delay, some legitimate and some not.  Legit reasons could be that they are busy working through their stack of loans or, (if you are working with a bank), they need to sell some loans in order to replentish their credit line so they can fund more loans.  A non-legit reason for the delay could be that (if you locked your loan) they really didn't lock it and now can't deliver the rate promised.

If you can't get a straight answer from your loan officer, go up the ladder to his/her sales manager or supervisor.  You need to be informed as there is a legal contract beteween you and the seller to close by a specific date.  If you are working with a Realtor, ask them for help as well.
  • June 11 2009
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Profile picture for the_country_hick
Jnaris, this is not my area. You would probably do better to ask this question in the buying section. At the top of the page on the right side is the ask a question box. Type your question there and fine tune it on the second page.
  • November 23 2010
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Profile picture for Jnaris
I am in the same boat- the process is taking longer than the closing date.
My realtor is saying that it will go into a second addendum. This will make the seller panic. i have given the lender my SSN card, now they are asking me after many docs back and forth a letter for another SSN verification. Is that normal?

Second, my loan officer is saying that at the economy.Is this true? There is no reason the seller will panic. Although they are basically taken 2 more weeks beyond closing date.
  • November 23 2010
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Profile picture for Ken Kopper
ge.apple, The real problem here might be the the contract did NOT allow enough time for the clear to close on underwriting the file.

I think your loan officer should be well aware that the contract expiration date is looming and be able to communicate with both the buyer's and listing agents that the file is moving forward (not falling apart or moving sideways). I have actually gone as far to speak with the sellers in a purchase transaction and assure them that we will get an approval but that we will need x amount of days extension on the contract in order to deliver loan approval.
  • June 12 2009
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