settlement delay -- HELP NEEDED!

[Anonymous]

My mortgage company was to settle on friday, but got delayed because they didn't sent my title company the loans docs or wire. now everything is re-scheduled for monday afternoon. is this standard? do i have to worry about anything?

here is how it went down: i got in all of my documentation, then the day before, they're waiting on a tax filing from the IRS showing I actually filed for 2008. they said they got delayed, so then i just provided them by official filing from TurboTax and then that was over. then they said they needed an FHA Amended disclosure to be signed by the seller & real estate agent & i also got that done, too. now its the day of the closing & they wanted to do a dry closing, but everyone said "no", so that is why everything got pushed to monday afternoon. if it were a dry closing, the docs would not have gone out until after 4:30pm, not giving the title company enough time to get crap together.

also, before-hand, the mortgage company already got in contact with the real estate agent & title company, exchanging figures, getting me to pay for the home insurance & date it for the 13th of november, & utilities are already in my name. i guess i'm just a worried wart when it comes to these sorts of things, but i also have to give my landlady 2 wks notice to move out so i dont have to pay rent for december.

thoughts?

Message Edited by kenaiyochan on 11-14-2009 08:21 AM

[Anonymous]

*post updated*

[Anonymous]

my bad, guys. i also wanted to ask, if a mortgage company LO, the branch sales manager, & the general manager all put in writing that my loan will close on monday & on time (they stated that the package & wire were sent after-hours for the title company), is there any legal recourse if anything other than the wirtten guarantee happens? im clear to close, etc.; opinions please!

[rockymtngrl]

I am not a lawyer so I can't speak to legal issues but my guess is no. Its very, very common for closing to be delayed for one reason or another.

[Anonymous]

well i did get an email from the branch manager (cc'd to the original LO, the underwriter, & also the mtg company district manager) saying that i satisfied all stipulations for the loan commitment & that the package AND wire were sent late friday (after-hours for the title company), so it looks like it's really gonna happen on monday. my question is, with all of those things now being guaranteed by the mtg company (that info & wire has gone out & that i WILL close monday & that they are sry for the inconvenience), do i have any recourse if they screw up again?

[hawkeye33]

Like rockymtngrl, I'm not a lawyer, but my guess is that the impact to you of a delayed closing (other than annoyance/stress) is probably limited to scheduled moving expenses and time off work, so I would guess the only recourse you would have is to figure any money you lose out of pocket for scheduled moving truck, etc., and possibly unpaid time off of work, and try to initiate a small claims case against them.

However, with closings being so typically subject to time change, it might be tough to make a good case. And, you of course have money you need to pay to file small claims litigation, so it might not be worth the money, time off for the actual small claims hearing, etc.

[Anonymous]

*nods* i guess i need to just chill out & let this process finally finish itself out. it just feel good reading everyone's opinions & thoughts on here; very calasthetic, i guess you could say. thanks, y'all! ^_^

[Lel]

It doesn't sound like your loan officer or branch manager have been acting in bad faith.  Remember, also, that the ultimate decision to fund your loan comes from the lender itself, not from the loan officer.

It also sounds like the LO helped make an exception for getting proof of your income tax filing - not requiring documentation from the IRS, but accepting your TurboTax filing.

As mentioned, it seems that possible damage suffered by you is minimal so far - just a few extra days of baseline utility costs and homeowners insurance.  I suppose if closing is delayed for much longer, then your financial harm will be worse since you may be on the hook for an extra month's rent.  Whether or not you can prove that it was due to negligence on the part of your loan officer is another issue.