Selling or buying a home is stressful and when escrow doesn't progress as it should it can be a nightmare.  This question from my weekly Real Estate Q & A pops up frequently: 



We sold our home a month ago and escrow was supposed to be 30 days long.  We just learned that the buyer is not ready to close escrow and still has not secured financing.   We are packed and only waiting on the buyer.  What do we do next?

JC North Hollywood

Dear JC,

In order to close escrow on time, certain events need to occur.  The two primary events are the loan approval and the buyer’s approval of a physical inspection.

When representing the seller, I like to see the following “good faith efforts” take place:

1) Buyer’s deposit is transferred to escrow (and the check clears)
2) Buyer makes loan application with a lender, appraiser contacts the listing agent for access to property to conduct appraisal
3) Buyer pays for and hires a physical inspector and buyer removes inspection contingency in writing

The above steps show the buyer’s seriousness in proceeding with the purchase.  Please talk with your real estate agent and see which of these steps have occurred. 

If all of the above has occurred, perhaps your buyer is simply having difficulty obtaining loan approval.  Most lenders have dramatically changed their underwriting criteria; some lenders are having money troubles and don’t have the funds available to close escrow.  Your Realtor might try contacting the buyer’s agent and lender to determine if the hold up is simply a delay or if there is a problem obtaining the buyer’s requested financing, and if so, what can be done.  Once, the lender has been contacted, you should be able to make a decision as to whether you need to remain patient, or (worse) consider canceling escrow and putting your home back on the market.