FHA Loans - Possible Loan Delays

Did you know that a typical Real Estate Transaction involves the timely cooperation of up to 53 different parties? Due to the number of people involved, there can be problems…

Since no escrow is closed until it is closed, the following items are potential roadblocks. We have placed a time delay of closing estimate next to each problem and the ones with asterisks (*) are potential transaction killers.
The Investor     

Typical Time Delay

* Decides last minute they don't like information provided



2 weeks or *

* Decides last minute they don't like the property



2 weeks or *

* Wants property repaired/cleaned prior to close



1 to 3 weeks

* Borrower does not qualify because of a late addition of information



2 weeks or *

* Requires at last minute a re-appraisal



2 weeks or *

* Investor loses file



1 to 3 weeks

* The Investor asks for additional information (these are called Conditions) from the buyer



1 week or *

* Investor too busy



1 to 3 weeks

* Investor waits to verify all income information with IRS



1 week or *
The Real Estate Agents     

Typical Time Delay

* Does not get all documents signed promptly



1 to 3 weeks

* Did not structure the transaction properly



1 week or *

* Did not pre-qualify the client for motivation



2 weeks or *

* Misunderstands-understands or lacks real estate experience



1 week or *

* Won't return phone calls



1 to 3 weeks

* Transfers to another office



1 week

* Goes on vacation leaving no one to handle file



1 to 4 weeks

* Has poor people skills with client



1 to 3 weeks

* Gets client(s) upset over minor points



1 to 3 weeks

* Does not communicate with their client(s)



1 to 4 weeks
The Escrow Company     

Typical Time Delay

* Fails to notify agents of unsigned or unreturned documents so that the agents can cure the problems



1 week or *

* Fails to obtain information from beneficiaries, lien holders, title companies, insurance companies, or lenders in a timely manner.



1 week or *

* Incorrectly prepares paperwork



1 to 3 weeks

* Incorrect at interpreting or assuming aspects of the transaction and then passing these items on to related parties



1 week or *

* Lets principals leave town without getting all necessary signatures



1 to 2 weeks

* Too busy



1 to 3 weeks

* Loses paperwork



1 to 3 weeks

* Does not pass on valuable information fast enough



1 to 4 weeks

* Does not coordinate well so that many items can be done simultaneously.



1 to 4 weeks
The Seller     

Typical Time Delay

* Loses motivation (i.e. lost job transfer, etc)



1 week or *

* Nets less money from sale than originally believed



1 week or *

* Cannot find another home to purchase



1 week or *

* Illness, divorce, etc



1 week or *

* Unknown defects are discovered



1 week or *

* Home inspection reveals average amount of small defects that seller is unwilling-willing to repair



1 week or *

* Removes property from the premises that the buyer believed was included



1 to 3 weeks

* Is unable to clear up problems or liens



1 week or *

* Last minute solvable liens are discovered



1 to 3 weeks

* Did not own 100% of property as disclosed



1 week or *

* Seller thought partners signatures were "no problem" but they were!



1 week or *

* Leaves town without giving power of attorney



1 to 4 weeks

* The notary did not make a clear stamp when
* notarizing the seller's signatures



3 days - 1 wk

* Seller delays the projected move-out date.



1 day or *
Acts Of God:     

Typical Time Delay

* Earthquake, fire, rain, etc.



1 week or *
The Inspection Company     

Typical Time Delay

* Too picky.



1 day or *

* Infuriates seller.



1 week or *

* Makes mistakes.



1 to 3 weeks

* Delays completing report



1 week or *
The Title Company     

Typical Time Delay

* Takes extended amount of time to deliver Pre-lims



1 to 2 weeks

* Does not find liens or problems until last minute



1 week or *

* Does not "bend the rules" on small problems



1 to 3 weeks

* Poor service



1 to 3 weeks

* Loses paperwork



1 to 2 weeks

We appreciate the time you have spent to understand the challenges between contract acceptance and the close of escrow.

We want you to understand the loan process as to understand the importance of getting preapproved for your mortgage before starting your home buying process.

 

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