I just spoke with my agent, who spoke with the buyer's agent and I now have a better understanding of the problem. The issue isn't just a misspelled name. Apparently, many years ago, the buyer changed his middle name. The docs showed his former middle name and he signed with his current middle name. Nobody caught it until the lender was doing the final review of the signed documents. Given this information, I can totally understand the lender wanting to get this straightened out.
Anyway, the buyer has taken the entire day off work and he's ready to sign the docs the moment they arrive. The lender's funds are already at the title office and they are just waiting the lender's authorization to release them to me. Unfortunately, that probably won't come until tomorrow, after the signed docs have been overnighted back. We're hopeful that the lender will accept a faxed version of the documents to release the funds today and they won't require us to wait until tomorrow when they receive the originals.
Possible Delay Again
Well, I just got off the phone with the escrow agent and they still do not have funds yet. Apparently the problem now is that the lender is being a jerk. It seems the loan documents the buyer signed had the buyer's name spelled incorrectly and neither the lender nor the escrow agent caught it. The lender was complaining about this and wanted to get new docs, which means the buyer would have to sign docs again. Given the late hour, that would probably mean another 2 day delay, at least, to overnight the documents back and forth. However, the escrow agent said there is an "errors and omissions" document that was included in the loan package. Since the buyer signed his name spelled correctly on the paperwork, she is pushing to get the lender to correct the issue on their end as per the errors and omissions document and not require the buyer to sign new docs. The loan agent is going back to her boss with this request.
I told the escrow agent that I would give them another day, but she said she wasn't going to tell them that, in order to get some pressure on them to get this resolved.
I'm giving them another day because this delay is purely administrative - the buyer's loan has been approved and there isn't a chance of him being turned down anymore. Now, the lender is just being pretty anal about the issue. (The escrow agent said this is typical behavior for this lender.)
I told the escrow agent that I would give them another day, but she said she wasn't going to tell them that, in order to get some pressure on them to get this resolved.
I'm giving them another day because this delay is purely administrative - the buyer's loan has been approved and there isn't a chance of him being turned down anymore. Now, the lender is just being pretty anal about the issue. (The escrow agent said this is typical behavior for this lender.)
Another 1 Day Delay
I got a voicemail from my agent this afternoon and she told me the buyer signed his loan docs today - which means the loan will not fund until tomorrow, since the docs have to be overnighted back to the bank. But she was also told the bank has ordered the wire for the funds, so it should be all set to close tomorrow. I went ahead and gave them a one day delay. It sounds like things have finally progressed.
Another reason I let the buyer have another day was that today was my first day at my new job. The first day is always pretty hectic, so I didn't want another item to worry about.
Another reason I let the buyer have another day was that today was my first day at my new job. The first day is always pretty hectic, so I didn't want another item to worry about.
Found the HUD error!
As I said before, there is always a mistake on the HUD settlement form - it's just a question of finding it. I originally thought this time was a rare exception, but it turns out I was wrong. There is a mistake.
A friend brought to my attention the fact that the $26 for four days of property taxes figure I gave seemed a bit high. Turns out, he was right and I made a calculation error. The actual amount is about $12 for four days. But in reviewing this, I discovered the HUD statement had me overpaying my taxes by $1. They listed the first half of the year's taxes at $561.31 instead of $560.31. OK, it's only a dollar difference, but still. I can stand by my claim that the HUD statement always contains errors! :-)
A friend brought to my attention the fact that the $26 for four days of property taxes figure I gave seemed a bit high. Turns out, he was right and I made a calculation error. The actual amount is about $12 for four days. But in reviewing this, I discovered the HUD statement had me overpaying my taxes by $1. They listed the first half of the year's taxes at $561.31 instead of $560.31. OK, it's only a dollar difference, but still. I can stand by my claim that the HUD statement always contains errors! :-)
Update On Closing
I got a voicemail from the escrow agent and she told me she received my Cure Notice and has notified the buyer. She also spoke with the lender and he told her the delay was because the buyer's use of the property has changed. Now, I was told he was buying two houses and one was going to be an investment property and the other was to be his residence. He supposedly liked my property the best, so that was going to be his residence. The message the escrow officer left had it the other way around. Whatever the issue, she says we should close early next week. Well, that better mean Monday because that's the day the Cure Notice expires and I will have no qualms about putting this thing back on the market and keeping the guy's earnest money. He had a 30 day escrow period and now an additional week to get his loan situation straightened out. Of course, if it doesn't close and he wants another extension, I might be willing to give the guy another 1 week - but he will find the price of the house will have gone up.
