This one can be tough for the buyer. Unlike most resale purchases, the bank expects you to honor your agreement and close on or before the day agreed upon. I can tell you from experience there are many, many hiccups that can happen along the way but the bank doesn’t care, they want it closed per the agreement. So if your lender is slow to react and respond and doesn’t get the documents to closing on time for instance, there is usually a per diem charge in the contract that the bank will expect you to pay from the agreed upon date through the actual closing date, and this usually is non- negotiable unless it’s the banks own fault.
We recommend only lenders who are well versed in working with these kind of deadlines as well as lenders and repair companies who can accomplish what is needed in a timely fashion.
Chris Farkas is a Realtor with EXIT Realty Associates in beautiful Bellingham, WA
www.RealBellingham.com
www.SoundShortSale.com
www.WhatcomBankOwned.com
www.BellinghamMarketValue.com
This is a great reminder. I had a closing scheduled for Jan. 28, but didn't close until Feb. 27. Thankfully, there was no per diem outlined in the contract.
Chris, what a timely post - but not for me. I've spent the last three hours on the phone with my lender because my buyer's REO is supposed to close on Friday and right now, it's not looking good. Grrrrr.....
Amen. When a buyer comes to us "pre-approved" with an online lender unknown to us, they get a good warning about the contract date matter. We have a lot of foreclosures and in the lower price ranges, foreclosures and short sales are the majority of listings.
I just worked with a buyer where we closed 10 days late due to the bank's response times...lovely deal with Select Services and Aurora...the a cluster you know what working with these guys!
Thanks for sharing. :) PS
Excellent reminder. Goes to show how important it is to read those purchase and sale addendums the banks always throw in there so your client knows what can happen if their lender is not well versed in buying bank owned.