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  Closing drama's you know of or have experienced...
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Closing drama's you know of or have experienced... Sign In/Join 
Picture of CJO
posted
with me:...

'Buyer' called night before and said 'sorry', they changed their minds.

Buyer said at closing table "I didn't know the taxes were so much!" We did close tho.

Buyer brought large amount of cash to closing and the agency feared it was money laundering!!!! We did get it all worked out...he had to go get a cashiers check!!!

'Buyers' disappeared a week before supposed closing week ... deciding they would just move on!!!!!

Buyers didn't show up for closing due to money didn't come thru///TWIceeeeee!!!! Did finally close.


JUST Wonderinggggg...what is the percentage of closing that go smoothly???!!!???
 
Posts: 2866 | Registered: Oct 19, 2003Reply With QuoteReport This Post
Picture of Jewel
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With most closings, I think there's always some element of uncertainty/concern.

When we sold our first home, our buyer was selling his home to his friend. About 3 weeks before our closing, we asked our realtor for assurances that the buyer's buyer had qualified for a loan and was doing all the things he was supposed to do so that he could close on that house on time. He had been dragging his feet, but fortunately pulled it together.

The house we were buying at that time was a challenge. We submitted our bid while the house was in foreclosure. The lender didn't respond to our bid and sold it on the courthouse steps instead. We put in a new bid with the investor who bought it. Another party submitted an identical bid to ours except that the closing on the house they were selling was a few days after our scheduled closing. I guess the extra few days earlier we could close was motivating for the seller as our bid was accepted.
 
Posts: 8200 | Registered: Sep 18, 2002Reply With QuoteReport This Post
Picture of real estate lady
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Buyer client saw hurt animal on side of road on way to showing her houses. Spent all afternoon at vet. Vet says much surgery was needed. Eventually found buyer a home. Cat lived, buyer no where to be found day of closing. Found her at vet feeding cat chicken from KFC.
~~~~~~~
Another buyer came to closing with briefcase full of cash at closing handcuffed to his wrist.
This was in the 1970's. He was wearing a black suit, black shirt and white tie. No comment.
~~~~
Buyers and sellers at closing table. Buyer stopped suddenly signing closing documents. Head hung. Wife says just give him a minute..his pacemaker will kick in..and it did and he continued to sign documents like nothing had happened.
~~~~~~~~
Sold a house to a guy who wanted lots of shelves for his collection... of skulls. Found him the perfect house once I found out he didn't want mine ..and was talking about animal skulls. Brought him an alligator
skull for a closing gift. We closed Friday the 13. Freaky Friday.



Ooohhh... I love my life.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9261 | Registered: Aug 14, 2007Reply With QuoteReport This Post
Picture of CJO
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Ohhhhhhh myyyyyyyy word!!!! Thanks for sharing!!!
 
Posts: 2866 | Registered: Oct 19, 2003Reply With QuoteReport This Post
Picture of Gwenda
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Two stand out--our recent closing less than a month ago when we closed but mortgage compny refused to release money because of some small discrepancies with first bushes and then the water situation. Took a week but we finally resolved the issues. (See my posting titled Closed but Not for the whole drama in another of the real estate topics.)

Many years ago selling first ever owned house. As I was packing for the move, the buyers of our home decided to back out because they couldn't come up with $400. (We loaned them the money at no interest for 4 years to close the deal. It really burned me that they managed to purchase a decent sized boat and who knows what else after that and yet when our no interest loan came due we had to go after them to get our money.) Just days later as we loaded the last things on the truck, our realtor in the new town called to say the sellers of our next house were not going through with the deal because the job they were moving for had fallen through. We put things in storage and rented an apartment and started the search over and found a house pretty promptly. The sellers who had reneged on the first house paid for our storage and apartment rent.


Life isn't about how to survive the storm, but how to dance in the rain.
 
Posts: 1171 | Location: DFW Metroplex | Registered: Sep 19, 2002Reply With QuoteReport This Post
Picture of CJO
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Gwenda...did they pay those costs out of the goodness of their own hearts???
 
Posts: 2866 | Registered: Oct 19, 2003Reply With QuoteReport This Post
Picture of Gwenda
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Actually they did with a bit of gentle encouragement of our realtor.
 
Posts: 1171 | Location: DFW Metroplex | Registered: Sep 19, 2002Reply With QuoteReport This Post
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Although people probably provide the most amusing stories re closing day disasters, the ones that always makes me laugh is the discovery ON DAY OF CLOSING that the title isn't clear! Sudden realization that the purported seller doesn't have the authority to sell - usually a surviving spouse situation or children who just "assumed they had inherited the property" but neglected to actually complete a probate and the transfer of title! Eek

Makes me wonder where the title officers, title/escrow company, underwriters and real estate professionals were during the process? So, word to the wise, when either selling or buying, order a preliminary title report to make sure the title is clear. If you don't have the experience to know, make sure you have the professionals on your team that do! Cool

PS. Most times the problem is "solved" with expediated action by a hard-working attorney and staff working over-time as the buyers are brought to a stand-still and sellers are trying to decide whether to keep loading the pods or start unloading them! Don't let this happen to you! Smile
 
Posts: 6492 | Registered: Jan 01, 2008Reply With QuoteReport This Post
Picture of real estate lady
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I assure you there is nothing amusing about problems on closing day.

If there is a title problem we usually know days before closing, and if documents, the problems seem to be associated with the loan underwriting..verifications of re-inspections of credit, VA or FHA verifications of completed repair(s). Problems with health of the buyer or seller or death, accidents, mother in labor, are other surprises.


I once lost a sale years ago because the buyer decided to take her family to a reunion out of the country during loan processing. Just before closing they pulled her credit again (as the lender underwriter is required to do) and discoverd this fact. The buyer was denied closing.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9261 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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A couple come to mind. The night before a closing I was notified that the buyer had passed away and since it was an income property only his name was on the contract. Another time, at the title office waiting for close to begin, my buyer told me he had lost his job the day before but wanted to go ahead because he had another job lined up. He kept silent when title officer asked if all the info on the application was the same as stated at time of application.
Once had a buyer buying a $200k home with only $500 down- he kept finding issues and threatening to not close right up to day before close. Was pleasantly surprised to find him waiting for me at title office and he closed. That guy is probably the only customer I ever dealt with in almost 30yrs in business who I wish I had never met.
 
Posts: 3131 | Location: Michigan and sw Florida | Registered: May 16, 2007Reply With QuoteReport This Post
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Our house was going on the market starting on a Saturday but the pictures and the details came out early about the house going on the market. We got a offer after the first couple looked at it on Monday but had clause about them selling their house. We sent it back saying we couldn't take it so they removed the clause then added some of our furniture to be included. We excepted the offer. All was going as planned with inspections and all other financials. Week of closing DH was flying to met movers on Tues and closing was to be on Thurs. Buyers agent called our agent on Tuesday to say they had to sell their house before they could buy our house. They wanted us to release their earnest money right away. I refused to give it up until the 30 day period was up. We lost 2 months of prime summer months and a 1% bonus DH's company gives for selling your house in the fist 60 days of listing. We lost about $20k when we finally sold to another buyer. Nothing we could do to buyers for not disclosing information since they said loan was approved with them knowing they had a house to sell. Underwriters turned them down.

Loves Tx

This message has been edited. Last edited by: Loves Texas,
 
Posts: 1260 | Registered: Dec 07, 2003Reply With QuoteReport This Post
Picture of Jewel
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From what I've read here, your buyers used a trick that's becoming more and more common. They had nothing to lose by removing the contingency that they sell their house first because they knew they could always get out of the closing via the financing contingency (since it remains in place until closing). For that reason, I would be leary of accepting a modified offer where the buyer originally included the contingency of selling their home.

Even if a seller/seller agent insists on proof of the buyer's loan approval during the pending period between offer acceptance and closing, the buyer can easily cause underwriters to reject the loan at the 11th hour by taking on other debts or making their savings/downpayment "disappear". I guess that's where trust in the integrity of the buying party comes into play despite the existence of a contract.

When we bought our house, our builder's rep told us about buyers they had for another house that failed to close because they had spent all their downpayment money on new furniture for it.
 
Posts: 8200 | Registered: Sep 18, 2002Reply With QuoteReport This Post
Picture of real estate lady
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Since my experience re my previous post of buyer taking family on reunion during loan processing..I am quick to remind buyers not to make major purchases. Believe me, it's more of a speech than a reminder.

Disqualifying yourself from a mortgage "can" cause consequences, if proven.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9261 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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The sad thing is the buyers had pre-approval letter from lender so we tried to cover all our bases but underwriters said they needed to sell first. I think their realtor knew about the need to sell but could never prove anything. Called her broker and complained. They insisted they were out a lot of money on inspections and other fees. We changed realtors after this but lost most of the summer selling months. Our realtor paid the survey fee we were to have to pay. I think in the end the realtor was glad to be out of selling our house since my DH was not nice to them when we found out both were from Century 21 but from different offices. Can't tell me they both didn't know about the house needing to be sold.

Loves Tx
 
Posts: 1260 | Registered: Dec 07, 2003Reply With QuoteReport This Post
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When the buyer came back with the offer I would have removed the financing contingency based on the approval...another words after inspection if they fail to close for any reason they forfeit their deposit.

Century 21 is a franchise company meaning it is very very likely that those agents did not have the same broker and no access to personal information of the other's client.

One of the worst moments at a closing was immediately after the sellers signed their docs and before the buyers signed theirs a call came in....the house was on fire and it burned to the ground. It was an awful time for both families.
 
Posts: 519 | Location: mi, usa | Registered: Apr 10, 2003Reply With QuoteReport This Post
Picture of Sunny Daze
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Our Buyers offered "all cash" in the initial offer, BUT at my attorneys office a mortgage contingency was in the contract, but with proof if the mortgage did not go thru, they would pay cash.

On behalf of the bank an appraiser was sent to our home and then he went to the town clerk to see what CO's we had on our house. He told the clerk that we had a "home gym" so she opened a building permit in my name without me knowing this. Then here along comes the title company who picked up on an open building permit which is how we found out.

In the meantime we moved out of state and our fabulous realtor did battle with the clerk as we had a weight machine and stationary bike in the basement at the time of the inspection that once it was removed the space is an open basement - I can't even begin to tell you the hassle this caused. It actually held us up for two weeks as the clerk needed to see the space. She was on some sort of ego boost along with the buyers realtor who was a complete ***

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Posts: 2544 | Location: usa | Registered: Sep 28, 2002Reply With QuoteReport This Post
Picture of DebiinFL
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This isn't as exciting as the others, but when I sold my first home, I had a closing for the one I was buying the same day (about 3 hours later). When I arrived at the first closing, the buyer said they wanted to go back and check the house again (the pre-check), and THEIR realtor told them that the had the opportunity to do that earlier, and that they couldn't hold up the proceedings any more. It was their understanding that they had all day to run around and check things, which was odd, because their realtor had given them - in writing - the schedule of what happened when. I know this because he brought out the letter and reminded them that they had agreed to this. Evidently, they had been quite problematic to deal with and he had resorted to putting everything in writing and having them sign it. BUT - we closed on time, and I had time to get to my second closing..... They then showed up at the house 3 hours earlier than agreed with 6 children (family friends as well as their own kids) while the movers were trying to get my furniture out of the house. It was quite the day!!!!
 
Posts: 144 | Registered: May 08, 2012Reply With QuoteReport This Post
Picture of Belstone
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DD recently sold her house to a first time buyer. Listing agreement was, of course, in black and white detailing all that stayed with the house...offer to purchase, black and white, no special contingencies or requests. 10pm, night before closing, DD gets a call from the realtor...buyer is upset because the curtains are gone, porch swing is gone, some pool furniture is gone...remember, none of these were listed or requested...buyer won't close unless they are returned! Because of the pending offer on DD's new house, she felt compelled to replace the items. Can't even describe the nightmare of finding all the items in storage! Here's the good part...listing agent advised DD what should be left (not window treatments), buyer's agent advised client what he should demand...BOTH agents work from the same office under the same broker. This is possibly the most unethical group I've ever encountered.


**Life isn't about waiting for the storm to pass...it's about learning to dance in the rain**
 
Posts: 3652 | Location: Here, by the grace of God... | Registered: Jan 24, 2006Reply With QuoteReport This Post
Picture of Charming
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The worst was a buyer who was "trying" to get a loan from his pension but was supposedly having difficulty because he did not get a release during the divorce. Big mess, didn't close.

Another agent in the office is dealing with a problem now - her buyers received a large cash settlement. She went through the usual warning with them - they blew the majority of it on stuff. Now the closing is in doubt.


Fun and Info
 
Posts: 3533 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of Charming
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quote:
Originally posted by Belstone:
DD recently sold her house to a first time buyer. Listing agreement was, of course, in black and white detailing all that stayed with the house...offer to purchase, black and white, no special contingencies or requests. 10pm, night before closing, DD gets a call from the realtor...buyer is upset because the curtains are gone, porch swing is gone, some pool furniture is gone...remember, none of these were listed or requested...buyer won't close unless they are returned! Because of the pending offer on DD's new house, she felt compelled to replace the items. Can't even describe the nightmare of finding all the items in storage! Here's the good part...listing agent advised DD what should be left (not window treatments), buyer's agent advised client what he should demand...BOTH agents work from the same office under the same broker. This is possibly the most unethical group I've ever encountered.


I don't know which state your DD is in but here both parties would have had to agree to the same broker representing both parties in the transaction. In addition if it is a Designated Agency arrangement the 2 agents can not discuss the transaction - everything must go through the broker.

With that said - the buyer's agent should have counselled the buyer about what stays and what goes. The listing should have the items listed that stays if it is not bolted down. If the buyer's agent knew the buyer was interested in these things it was his responsibility to make the buyer aware that they were not included on the listing and they need to make a separate offer.

I don't see the agents as unethical, just not very good.


Fun and Info
 
Posts: 3533 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of DebiinFL
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I have seen several that couldn't close because the people spent a ton of money on stuff for the new house and then couldn't qualify due to debt. Just plain sad.........
 
Posts: 144 | Registered: May 08, 2012Reply With QuoteReport This Post
Picture of Belstone
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quote:
I don't see the agents as unethical, just not very good.


Oh, there was lots more I didn't relate...believe me, they all acted unethically. You would not believe some of the "advice" that was given...like they had to wait 10 days after the offer was accepted to move forward with inspections, etc. I've bought and sold lots of real estate in this state and have never encountered this little "rule".


**Life isn't about waiting for the storm to pass...it's about learning to dance in the rain**
 
Posts: 3652 | Location: Here, by the grace of God... | Registered: Jan 24, 2006Reply With QuoteReport This Post
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I have never had a problem closing ever, 5/5 times for me.

It would have been hillarious to have seen the client turn up the agency with a bag full of cash! What was he thinking? Did he not consider how that would look?

I would probably do the same if I had that much cash lying about though Big Grin
 
Posts: 12 | Registered: Aug 29, 2013Reply With QuoteReport This Post
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Any business person cheating on the rules of a message board is sure to cheat their customers.
 
Posts: 748 | Registered: Jan 02, 2005Reply With QuoteReport This Post
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