60 days purchase contracts should be mandatory

[Anonymous]

During the time when I was purchasing a home, I had to get the contract extended twice.   Not knowing whether or not the Seller would grant the extension or if they would impose  the  $100 per diem can be very stressfull.   Having a mandatory minimum  60 days contract even if the loan can close in less than 60 days will save people a lot of stress.     

[Anonymous]

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@Anonymous wrote:

During the time when I was purchasing a home, I had to get the contract extended twice.   Not knowing whether or not the Seller would grant the extension or if they would impose  the  $100 per diem can be very stressfull.   Having a mandatory minimum  60 days contract even if the loan can close in less than 60 days will save people a lot of stress.     

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With TRID coming up, closings may take an extra week or two now... but this is the importance of finding a good lender who does their due diligence upfront before a pre-approval to make sure all potential issues are evaluated. Sometimes a lender who can close escrow in 30 days can be the difference in an offer getting accepted by the seller, and more times than not 30 days is a realistic number. The lender and the buyer's agent should have open and honest communication before an offer is submitted to establish a realistic COE timeframe. Very, very rarely should it ever take more than 45 days - even with some bumps in the road or when using a downpayment assistance program.

[StartingOver10]

Agree with dpeezy.

Most of my buyers can close in 30 days - easily. There are very few times a contract needs an extension.

OP, didn't you buy a foreclosure? That type of purchase is a totally different type of purchase and the contract terms offered need to reflect the type of property, type of loan and issues that may be present between the parties that may or may not be present in similar types of purchases.

REO properties take longer generally due to title issues and some condition issues (depending upon the buyer and loan type).

Short sales take longer.

Now that TRID is upon us as of October 3rd, you can bet your bottom dollar that the big box banks will need more time to close anything - 45 days minimum.

However, a regular correspondent lender can still operate efficiently and close in 30 days. I would think that these next couple of months will need more time just to get the new TRID system up and running properly (between title co's and lenders) but once the routine is in place - I bet we see 30 to 40 day closings completed on a routine basis. The next couple of months should be interesting ...

[DallasLoanGuy]

am asking my realtors for 45 day contracts until we get a few TRID files under our belts.... just to be safe.

we should be able to do 30 day deals again though. as i only see a 3 day waiting period to cure the inevitable screwup

[happy0510]

But i'm a seller right now and I love my 30 day closing time frame! It is going so smoothly and it's great! The lender is going to have the clear to close in a few days which is only 14 days in!