Warning: Lenders Are Backing Out:
A few days ago I wrote an article stating, “If You Were Approved Yesterday You May Not Be Today”. It wasn’t just an attempt to be funny. While on the phone this afternoon with a colleague they had a transaction crash and burn because a lender backed out. The closing was extended for financing reasons, the closing won’t happen at all. The buyers were using 100% financing to make the purchase. The lenders on most 80 - 20 (2 loans) are pulling back.
The sellers have moved out of state, the utilities turned off, the closing was to be today. My colleage, the listing agent was not aware the problem was serious until it was dead.
My daughter just saved a deal with a similar problem. Deals are falling apart all over the place.
If the source of funding dries up, it dries up.
If you are a buyer or a seller, you better make sure your transaction isn’t the next casualty.
Yep… they are changing the rules as they go along right now.
I’ll be blogging about a client who was approved for one program, then the lender changed the terms… not once, but TWICE - the last time the day before closing.
Since my client is A paper, we extended for a week and took our business elsewhere. If all goes as planned, we’ll close on Monday.
I’m not holding my breath.