Recently had the misfortune of having a closing that didn’t close because the lender did not fund the loan after all the documents had been signed by the buyer. Taylor Bean & Whitacker was the lender and the day of the closing was banned from making any Fha loans not to long after that Taylor Bean ceased operations and closed down their doors leaving my client along with many others high and dry.
The closing was extended several times because of the lender and was a very stressful experience for my buyer who did everything she was suppose to and handle everything in a graceful manner a lot better than I would have. I can’t even imagine her emotions thinking you have a home after signing the documents and the next day finding out the home never funded and the home was not going to be hers.
She was leaving the next day going out of the country so she decided to put everything on hold until she comes back. I hope we are able to get this home for her with another lender because she so deserves it. This is a first for us in Real Estate where we had a closing that didn’t fund I can almost say I have seen it all but I am sure there are a lot wackier things in today’s Real Estate market we have yet to discover.
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We’re seeing that all over up here in Virginia. It’s nuts. To protect some buyers, we’re even trying to put in liability limitations in case this sort of thing happens.
I feel so bad for you! I am running into lending issues all the time.
Ugh…your preaching to the choir. It really is starting to get old, isn’t it?
Its kind of bad, I was facing the same issues couple of months ago, But Thank god! Now everything is smooth. I can give you one advice just be patient and hope for the best.
I can imagine your client’s emotional stress in addition to regular problems with new home buying. Did she lose the deposit?
back in early 2008, I had one of the first cases of the failed lender problem – Bear Stearns was the lender and just before closing they went out of business. We were already 40 days into a 45 day escrow when we had to cancel on our buyer. It took us another 40 days to close. Hard to believe that is more than a year and a half ago.
I guess Bear Stearns wasn’t too big to fail…
That’s a shame for the buyer. We had a lot of that going on in the Austin area a 12-18 months ago, but we generally haven’t seen lenders closing lately.
Oh! it hurts a for you and especially your buyer, that she is expecting to have a new home and knowing the next day that it couldn’t be happen because the lender didn’t fund it.
But hoping and wishing you both the best that this problem of yours will be resolve. And that result will be positive that can make you two happy.
I have had this happen once or twice. But in one of my cases they title company shut the doors before we could fund. We had to wait for a new title company to take over the file. The client moved in becasie the old title company gave her the keys.
lots of crazy stuff going on these days. it’s important as a realtor to stay focused and calm and continue to help our clients through these tough and strange times. it’s a good learning experience too, think of it that way!
I had the same thing happen with the lender in one of my escrows. They claimed to be a “direct lender”, but were getting their money from an investor, not a bank. The house was a short sale about to foreclose and we were given a time limit to get the deal sealed, however the lender couldn’t convince the investor to give the new buyer the loan. We finally got it closed right before time ran out. Just hang in there. It may work out for you yet.
What a horrible situation for your clients. I couldn’t imagine having to tell some of my clients that they lost the house just days before closing. How did you handle their questions and overwhelming amount of dissappointment?
I have seen a lot of weirder things as of late, but this is totally bizarre. It must have been stressful for everyone involved.
When a business goes under it usually has a lot of collateral damage and I’m sorry your buyer got caught up in this.
This is unfortunately becoming all to common in this economy. Just reiterates the importance of finding quality clients that will be able to afford the home and receive a line of credit from lenders.
Yikes! I can say that must be just a little nerve racking. I once had a deal not close because the landlord of the small business I sold decided to back out of the lease agreement he had signed just a week prior.
I am in a 2nd home market and loans fall through all the time when the underwriter does a search for the condo name and find that it has rental properties in it. As a result, cash buyers have a huge advantage in negotiations.
As an Interior Decorator and home stager, I work with lots of realtors. Their stories are just heartbreaking. So sad for these clients. And, can only imagine how difficult it is to provide good sales support when so much is out of your hands!
Best of luck to you. Things WILL turn around, the always do!
That’s awful. I haven’t had that happen with any of my clients yet. I guess, in this market, you really have to research the lender you’re using and make sure it’s not on the verge of bankruptcy. As a listing agent, it will make me make sure any potential buyer has done the due diligence on the lender.