Things That Can Delay Your Closing
Posted September 27th, 2016 by Clarissa Gregg

Things That Can Delay Your Closing
The big day is here; your home is under contract and ready to close! Everything is going smoothly until you get a call from your agent that the closing has to be delayed. Successfully closing on a home is dependent on many things coming together and sometimes there are bumps in the road, which can add to the overall stress of a home sale. At Moving Station, we have the experience of many different unexpected situations popping up, and have the expertise to help you handle them in the best way possible! Here are a few of the most common snags;
1. The Buyer’s Financing Doesn’t Come Through
Though the buyer may be pre-approved for their loan, occasionally problems can arise. For instance, the buyer could have a major unexpected life event occur, they could make a major purchase impulsively, or the lender could change up the terms on the buyer. This does not mean that closing will not happen! It’s possible the buyer can still work through things with their lender, or if the lender changes the terms and the buyer does not agree to them, they can switch to another lender to secure financing.

2. An Unexpected Lien on the Property
A lien by definition is a right to keep possession of property belonging to another person until a debt owed by that person is discharged. A title search is always conducted during the escrow period, and if a lien is found, the sale will not be able to be completed until the lien has been cleared. Usually this is a matter of going back to the lien-holder to either satisfy the lien or obtain documentation that the lien is already satisfied.

3. Pests in the Home
During the inspection, inspectors will be looking for several issues in the home, but a big issue is termites. Termites can cause substantial damage. Not only can termite damage be a concern for buyers, but it can also be a reason a lender would decline a loan. Before putting your home on the market, consider having a pest inspector assess your home to ensure it is pest free! If termite damage and/or activity are discovered during a buyer’s inspection, you can have a pest company treat for termites, or provide a credit to the buyer to cover the cost of the extermination and repairs.

4. Repairs
Once the inspection is complete, it is possible that other issues could come to light, such as mold, leaks, structural issues, etc. If these larger issues are present and the buyer insists on having them fixed before moving forward, you will either need to agree to complete the repairs or offer a credit for the buyer to have the work completed themselves. If you and your buyer cannot agrees on the inspection items, the contract can be cancelled by either party.

5. Incomplete Paperwork
Sometimes a clerical error can occur when preparing the closing documents and it can delay the closing. Your agent, your attorney (if you have counsel involved), the lender, and the title company should all go over everything with a fine-toothed comb to make sure that everything is correct.

6. The Buyer Backs Out
On occasion, the buyer or seller will decide to back out of the deal. This can be costly for both parties, especially if the process is far enough along. If the buyer backs out, the seller may keep their earnest money. If the seller backs out, they could potentially have to pay the expenses the buyer has incurred.

We have seen all of these situations and likely more than once! We are prepared, along with your agent, to help you through these situations to the best possible outcome for you. Though delays on a closing can be stressful, it’s possible that with the right set of tools, they can be resolved successfully.

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