I took a sellers home to market the last week in August. This was the kind of listing, or more to the point, seller, whose home is always "staged", staged on steroids. It showed so well that I looked them both in the eyes and said my guess is 3 buyer viewings max, and I would have them an offer.
The first buyers to view the property immediately brought us a very clean offer.
My sellers had just broke ground and were building a brand new home up north, and with this offer, they would be able to take their Olympia equity and make the new home purchase that much easier for their retirement.
They are chasing/following grandbabies. This is quite the niche market I'm finding. Grandchildren chasers.
The buyers came with a pre~approval letter, that to read from their lender was stellar. So everyone signs the contract and we are off to an October 5th closing.
I got to my office to submit the offer and in organizing the paperwork I read the pre~approval a little closer at the bottom, the address was Arizona.
Out of state lending puts a bit of a knot in my stomach. There is not alot I like about a lender being in another state to make a loan in Olympia Washington.
I share my concern with the seller and remind them they are paying me to track the loan and being in Arizona we all agreed I should probably introduce myself to this lender and make a weekly progress call. So I did.
I also shared my concerns with the other agent and wanted him to let me know all he could about the buyers and had he talked to the lender ?
It turns out the buyer had somehow made contact with this lender and felt he was their guy to make this loan for my "staged on steroids" listing. The other agent was concerned himself, so we agreed to stay on this lender more than either of us would probably do with a local reputable lender.
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| the mantle was a carpenter referral I provided to the seller, back when they bought 10 years ago |
The inspection was spotless and the appraisal done, as we're getting closer to October 5th, the lender was not returning calls and I wasn't getting information from the other agent either. So we both started pestering the lender for updates.
It turns out there were credit issues with the buyer and the lender needed more time.
How much time ? ~ 30 more days should do it.
The sellers grant a 30 day extension and we took the $1,000 RE-Fundable earnest money and made it NON Re-Fundable.
The day I went over to have the seller sign the extension was the same day the movers were there to load the furniture. Buh Bye awesome staged on steroids furnishings. A slight knot in my stomach seeing the home now vacant, unfurnished.
So off we go to the end of October and the communication again breaks down from the lender. Finally we all hear, the credit issues are a bigger problem than we all had thought. We need more time.
How much more time ?
We all agree on Novemer 23rd. The day after Thanksgiving.
We ask the buyer to put up an additional $1,000 to be paid directly to the seller, Non Re-Fundable. The buyer agrees.
So the holidays are nearing and the real estate market can shift or just stop around Thanksgiving and stay very slow through the holidays until sometimes out near the end of January or the super bowl.
The monday morning of Thanksgiving week my sellers let me know they are not going to grant another extension. They don't think this loan nearing 90 days is ever going to happen. I was more optimistic but let all parties know that no extensions would be granted.
So Wednesday the day before turkey, the lender informed us he was not going to be able to make this loan.
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| my seller chose marble counters instead of granite |
The sellers new home is scheduled to close Monday December 10th.
It is such a shame and such a ripple effect when an out of state lender will give first time homebuyers a pre-approval letter and lead us all to believe that everyone will live happily ever after.
The buyer is now out $2,000. That is alot of money. What would you do with $2,000 this time of year, or anytime ? As much money as $2,000 is to most of us, including these buyers, the $2,000 my sellers received in my opinion, is not nearly enough to compensate for the loss of time.
Have you seen us at http://www.thurstonliving.com/
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