Home Seller’s – The life of a shaky escrow
After a month of showings, the price was reduced and offers came; one was accepted and we entered into a 30 day escrow. The buyer conducted her physical inspection and requested only that the seller supply additional smoke detectors and shampoo the carpets. This was an easy request and the seller gladly complied; escrow proceeded.
This buyer's FICO scores were low, down payment was minimal and lender's qualifying standards have recently changed. We knew we were on a rocky road; the lender was on the "watch list" (the lender could go under in the middle of escrow which could mean that either the buyer would need to find another lender that would give her a loan or if the buyer could not find another lender to provide financing the buyer would be unable to close escrow and under the terms of the contract the buyer's earnest money deposit would be refunded and we would need to find another buyer).
We waited over a week for the loan documents to arrive at escrow and both seller and I "breathed easier". Documents were signed; the buyer's down payment money wired to escrow and the seller contacted the mover.
This buyer's FICO scores were low, down payment was minimal and lender's qualifying standards have recently changed. We knew we were on a rocky road; the lender was on the "watch list" (the lender could go under in the middle of escrow which could mean that either the buyer would need to find another lender that would give her a loan or if the buyer could not find another lender to provide financing the buyer would be unable to close escrow and under the terms of the contract the buyer's earnest money deposit would be refunded and we would need to find another buyer).
We waited over a week for the loan documents to arrive at escrow and both seller and I "breathed easier". Documents were signed; the buyer's down payment money wired to escrow and the seller contacted the mover.
During a troubled escrow, it is VERY difficult for the seller; the seller hopes they are moving but packing must be very carefully considered as there is a strong possibility that the property can go back on the market at any time. Because this lender was on the watch list, up until the time the lender funded (wrote the check) we were not assured that this escrow would close as this lender could go under at any moment and the loan commitment probably not honored. We were in a very precarious and stressful position; a year ago this buyer would not have had a chance entering into escrow (today, well qualified buyers are more difficult to find). Home sellers last year could pick and choose through multiple offers and had the opportunity to select one offer from numerous well qualified buyers.
The loan funded yesterday, we will record (close) today.
Posted by Phyllis Harb at 9/26/2007 6:38 AM 
Categories: In a Realtor's Week, Lenders, A Seller's Perspective
Categories: In a Realtor's Week, Lenders, A Seller's Perspective
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5/17/2008 6:53 AM
Los Angeles Real Estate Blog wrote:
When I represent the seller, my job as their listing agent, is to follow up on all aspects of the transaction. In the meantime; I love a paper trail – I am trying to get the status of the buyer's loan - my client, the seller would like to start packing, etc. ________________________________________From: phyllisharb [mailtophyllis@realtorharb.com] Sent: Friday, May 16, 2008 3:08 PMTo: Kristen Hartwick - (escrow officer) Cc: buyer’s RealtorSubject: xxxxx - buyer's loan I did happen to “catch” MC, Loan Processor/Underwriter. She is both processor and underwriter. She thinks she has everything; she needs time to put ... -
5/17/2008 6:57 AM
Los Angeles Real Estate Blog wrote:
When I represent the seller, my job as their listing agent, is to follow up on all aspects of the transaction. In the meantime; I love a paper trail – I am trying to get the status of the buyer's loan - my client, the seller would like to start packing, etc. ________________________________________From: phyllisharb [mailtophyllis@realtorharb.com] Sent: Friday, May 16, 2008 3:08 PMTo: Kristen Hartwick - (escrow officer) Cc: buyer’s RealtorSubject: xxxxx - buyer's loan I did happen to “catch” MC, Loan Processor/Underwriter. She is both processor and underwriter. She thinks she has everything; she needs time to put ... -
5/17/2008 6:59 AM
Los Angeles Real Estate Blog wrote:
When I represent the seller, my job as their listing agent, is to follow up on all aspects of the transaction. In the meantime; I love a paper trail – I am trying to get the status of the buyer's loan - my client, the seller would like to start packing, etc. ________________________________________From: phyllisharb [mailtophyllis@realtorharb.com] Sent: Friday, May 16, 2008 3:08 PMTo: Kristen Hartwick - (escrow officer) Cc: buyer’s RealtorSubject: xxxxx - buyer's loan I did happen to “catch” MC, Loan Processor/Underwriter. She is both processor and underwriter. She thinks she has everything; she needs time to put ...
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