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Valued Member
Kristina89
Posts: 31
Registered: ‎01-07-2012
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Clear to close but can't close?

We were cleared to close on wed..FHA short sale...my lender didn't meet the closing date of 9/17 and my realtor says he's never not closed a short sale on time...and we need to resubmit a HUD...I'm not very optimistic about this house after allllllll the stress if going through the loan process ...😢
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StartingOver10
Posts: 4,395
Registered: ‎03-06-2010
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Re: Clear to close but can't close?


Kristina89 wrote:
We were cleared to close on wed..FHA short sale...my lender didn't meet the closing date of 9/17 and my realtor says he's never not closed a short sale on time...and we need to resubmit a HUD...I'm not very optimistic about this house after allllllll the stress if going through the loan process ...😢

When you were asking about the HUD before, I didn't realize you were talking about a short sale.

If your lender missed the date that the short sale lender alloted for closing then an extension has to be applied for by the seller's short sale representative (attorney/title rep or agent). An extension is signed by both the buyer and the seller and a new HUD is prepared showing the net. Sometimes the short sale lender will extend and sometimes they don't extend. If your date to close was supposed to be Sept 17 - (the date the short sale lender approved) - that means you would have had to close before that date in order to get the funds to the short sale lender on or before the 17th. When the short sale lender gives a date, they are giving the date by which they have to be funded and completely closed.

 

There have been short sale closings that had to be reversed because the lender didn't receive the funds by the due date and the lender literally refused the sale.

Hopefully your seller's lender will be more cooperative. Did you tell your lender the deal was a short sale? They know that those closing dates are more difficult to extend.

Valued Member
Kristina89
Posts: 31
Registered: ‎01-07-2012
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Re: Clear to close but can't close?

My realtor never had us sign an extension and now he's saying we have to wait for BOA to give us a new approval...how long does that usually take?
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Senior Contributor
StartingOver10
Posts: 4,395
Registered: ‎03-06-2010
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Re: Clear to close but can't close?

Normally if I have to get an extension from BOA they want to see a written extension signed by the parties and a loan commitment showing you can close. Otherwise they won't extend.

 

Do you have a loan commitment? Especially since your lender was not able to perform before -it is extremely important to show that they can close now.

Valued Member
Kristina89
Posts: 31
Registered: ‎01-07-2012
0

Re: Clear to close but can't close?

Yeah we have a commitment that is good until the end of October, but if they take to long with there new approval then I'm not too sure how this transaction is even possible?

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