New Mortgage Timelines
Well I have been in an escrow that has almost set me over the edge—and it doesn’t take MUCH these days. Apparently the only way to stay sane in the business of real estate is to ONLY deal with cash buyers or there is a strong chance that the realtor will end up in a detox center for excessive martini drinking at the end of the day.
With the new mortgage process and timeline it seems that the contingency periods in our California Sales Contracts are quickly becoming moot. One timelime that is very interesting in that the appraisal must be completed and mailed to the homebuyer 7 days prior to close. Now the contract calls for a 17 days contingency period for buyers…and now the appraisal doesn’t have to be in until 7 days BEFORE closing- meaning that there is no way on earth that the infamous “underwriter”/ lender is going to allow a loan contingency to be removed in 17 DAYS! So now we are writing contracts that are can’t be followed – because of the LENDER. The seller doesn’t know if he is moving — and the buyer doesn’t know if he is closing. At least the buyer has a PLACE to live if the transaction CLOSES— the seller is totally “betting on hope” that the appraisal will come in and then that underwriting will not kick back issues that are not able to be solved! For example – a condo buyer… does the Condo Association have the amount of reserves in the bank to suit that one particular lender/investor? Is there anyway of knowing ahead of time…don’t think so!!!
AAARG! Best case scenario is to not lift the loan contingency UNTIL FUNDING- but what sellers wants to take that offer??? I guess the answer is for everyone to have a POD on standby with three large moving men in their guest room and a large supply of beer for the boys!
I wonder if Nordstroms shoe department is hiring?