Thursday, December 30, 2021 / by Client Care Coordinator
75 Things That Can Go Wrong in a Real Estate Sale
When it comes to real estate transaction issues, there is a lot that can happen. We can’t control all of the people or processes involved in a home purchase or home sale, but you can rest easy. Our team has years of experience and it’s our job to address anything that pops up head-on and help coordinate solutions so that your experience remains as positive as possible.
The Lender/Closer/Title Company:
- Fails to notify lender/agents of unsigned or unreturned documents.
- Fails to obtain information from beneficiaries, lien-holders, insurance companies, or lenders in a timely manner.
- Let’s principals leave town without getting all necessary signatures.
- Loses or incorrectly prepares paperwork.
- Does not pass on valuable information quickly enough which delays closing.
- Does not get Closing Disclosure to buyer/seller for review within 3 business days of settlement.
- Errors on Closing Disclosure which delays closing.
- Does not find liens or title problems until the last-minute which requires the seller to go to court.
- Omits important financial information on the application.
- Submits incorrect information to the lender.
- Has recent late payments on the credit report that were not previously disclosed.
- Found out about additional debt after the loan application.
- Borrower loses a job and no longer qualifies to purchase a home.
- Income verification is lower than what was stated on the loan application.
- Overtime income not allowed by an underwriter for qualifying.
- Applicant makes large purchase on credit before closing.
- Illness, injury, divorce or other financial setback during escrow.
- Gift donor changes mind.
- Cannot locate divorce decree.
- Cannot locate petition or discharge of bankruptcy.
- Cannot locate tax returns.
- Cannot locate bank statements.
- Difficulty in obtaining verification of rent.
- Interest rate increases and borrower no longer qualifies.
- Loan programs changes with higher rates, points, and fees.
- Child support not disclosed on application.
- Mortgage payment is double the previous housing payment.
- Borrower/co-borrower does not have steady two-year employment history.
- Borrower switches to job requiring probation period just before closing.
- Borrower switches to job from salary to 100% commission income.
- Borrower or Seller dies.
- Family members or friends do not like the home buyer chooses.
- Buyer is too picky about property in price range they can afford.
- Buyer forgets to get PREPAID INSURANCE BINDER.
- Buyer has spent money needed for down payment/closing costs, comes up short at closing
- Buyer does not properly “paper trail” additional money that comes from gifts, loans, etc.
- Doesn’t bring cashier’s check made out to “self” to the closing for down payment/bank fees.
- Loses motivation to sell because job transfer does not go through.
- Seller reconciles marriage and falls in love with house all over again and decides not to sell.
- Cannot find a suitable replacement property and decide to void the contract.
- Will not allow appraiser and inspector inside home.
- Seller does not get final water/utility readings for closing attorney.
- Removes property from the premises the buyer believed was included with the sale of the house.
- Is unable to clear up liens against their property- short on cash to close.
- Did not own 100% of property as previously disclosed.
- Leaves town without giving anyone Power of Attorney.
- Delays the projected move-out date.
- Did not complete the repairs agreed to in contract.
- Seller’s home goes into foreclosure during under contract period and house is sold at auction.
- Misrepresents information about home and neighborhood to the buyer.
- Does not disclose all hidden or unknown defects and they are subsequently discovered at home inspection.
- Builder miscalculates completion date of new home.
- Buyer finds the seller has not moved out of property within hours of settlement.
- Seller does not appear for closing and won’t sign papers.
- Has poor communication skills and forgets to send all addendum/amendments to the lender and title company.
- Delays access to property for inspection and appraisals.
- Unfamiliar with their client’s financial position- do they have enough equity to sell, etc.
- Inexperienced in this type of property transaction.
- Takes unexpected time off during transaction and can’t be reached.
- Has huge ego that gets in the way of progress.
- Does not do sufficient homework on their clients or the property and the buyers decide the home is not right for them.
- Board of Health will not approve septic system or well.
- Inspection report reveals substantial pest damage and seller is not willing to fix or repair.
- Home is destroyed prior to closing.
- The home inspection reveals the home not structurally sound and will cost thousands to correct.
- Home is uninsurable for homeowners insurance.
- Property incorrectly zoned.
- Portion of home sits on neighbor’s property.
- Is not local and misunderstands the market.
- Is too busy to complete the appraisal on schedule.
- Home was misrepresented as to size and condition and appraised for much less than the sales price.
- Unique home and comparable properties for appraisal difficult to find so the appraiser values home under sales price.
- Makes important mistakes on appraisal and brings in value too low. Seller demands another appraisal be done by another lender which would delay closing.
- Preferred Inspector is not available and the one that completed the walk-through is not experienced in representing accurate condition of property.
- Inspection reports alarm buyer and contract is cancelled.