Closing papers signed, still waiting for funding

[kwccole]

What is the name of your state?What is the name of your state? Texas

My husband and I accepted an offer on our home in Texas mid-August 2005. The contract specified the "closing to be complete on or before September 12, 2005". Within a week the buyer then moved the closing up to September 2nd. We were thrilled as we have moved and bought another home in California. Three days before the scheduled closing on the 2nd, we were told that it would be delayed until the 14th, because our buyers needed to close on the home they were selling in Washington state before they could close on ours.

We, nor our realtor in Texas, were ever told that our buyers had to close on their previous home before they could close on ours. Then we find out that there are 2 other homes in Washington state that have to be closed on and funded before our buyers can close on their home and then close the sale on ours. That made our house in Texas the 4th house in line for closing. The realtor for the first house delayed all the subsequent closings because she went on vacation and neglected to schedule the appraisal and inspection in time for the scheduled close date, and like dominos the other 3 closings got delayed. We had to sign an addendum to our original contract changing the close date to "no later than the 14th of September 2005".

On Wednesday September 7th, we were told that the closing had been moved to Monday the 12th. My husband and I signed our papers on Friday the 9th and Fedex'd everything to Texas for the closing with our buyers on the 12th. The official closing was completed on Monday afternoon when our buyers signed all the papers. We were told by the title company that the funding would come through either Tuesday afternoon or Wednesday morning and our loan with the mortgage company would be paid in full. Then it was "funding will come through Thursday morning". Now it is Thursday late afternoon and we are still waiting on the "funding".

Once again, it is caused by a delay with the first house; someone didn't sign the title document correctly and the company wouldn't fund. So funding has been held up on the 3 subsequent closings. We have been told it should fund tomorrow, Friday the 16th, but we're not holding our breath. We don't know what to do. We went ahead and made our September mortgage payment on our Texas home despite the fact that we have officially closed the sale, but because nothing has funded, any late charges would reflect on our credit. OUr Texas realtor is exasperated, as are we. She keeps saying, "the sale has closed", but we haven't gotten our money yet and as far as we're concerned, the sale isn't closed until all funding is complete. And we have not allowed the keys to be turned over so the buyers could move stuff in.

Do we have any recourse? Or are we just stuck in real estate limbo waiting for the money to come through? And what is the real meaning of the "sale has closed"? We always thought it meant papers are signed and money is transferred as appropriate. Any help or info it greatly appreciated.

[seniorjudge]

Don't you have a Realtor®?

What does your Realtor® say when you ask your questions?

[kwccole]

Yes we have a Realtor. She says "the sale has closed, everything has been signed, we're just waiting on the funding".

But for "how long we're supposed to sit around and wait for funding?", she doesn't have an answer. And she sort of brushed off our questions about "recourse". Either she doesn't know because she has never had this situation before and/or she thinks it would be too much aggravation.

And who would we go after, our buyers (who are really anxious to move into the home and are stuck in the same situation with the funding on their home in Washington) or the incompetent Realtor in Washington state that has caused all this by not doing her job correctly in the first place?

[seniorjudge]

Q: And who would we go after?

A: Whoever caused you the loss you suffer (if any). You need to talk with a real estate attorney if your real estate agent is not giving you proper answers (although what she is saying makes sense to me).

No real estate deal is closed until the check clears; doing dominos is always a bad idea in real estate but it is done a lot.

[HomeGuru]

Writer, have a meeting with the principal broker.

[CAlandlords]

Originally Posted by kwccole

What is the name of your state?What is the name of your state? Texas

My husband and I accepted an offer on our home in Texas mid-August 2005. The contract specified the "closing to be complete on or before September 12, 2005". Within a week the buyer then moved the closing up to September 2nd. We were thrilled as we have moved and bought another home in California. Three days before the scheduled closing on the 2nd, we were told that it would be delayed until the 14th, because our buyers needed to close on the home they were selling in Washington state before they could close on ours.

We, nor our realtor in Texas, were ever told that our buyers had to close on their previous home before they could close on ours. Then we find out that there are 2 other homes in Washington state that have to be closed on and funded before our buyers can close on their home and then close the sale on ours. That made our house in Texas the 4th house in line for closing. The realtor for the first house delayed all the subsequent closings because she went on vacation and neglected to schedule the appraisal and inspection in time for the scheduled close date, and like dominos the other 3 closings got delayed. We had to sign an addendum to our original contract changing the close date to "no later than the 14th of September 2005".

On Wednesday September 7th, we were told that the closing had been moved to Monday the 12th. My husband and I signed our papers on Friday the 9th and Fedex'd everything to Texas for the closing with our buyers on the 12th. The official closing was completed on Monday afternoon when our buyers signed all the papers. We were told by the title company that the funding would come through either Tuesday afternoon or Wednesday morning and our loan with the mortgage company would be paid in full. Then it was "funding will come through Thursday morning". Now it is Thursday late afternoon and we are still waiting on the "funding".

Once again, it is caused by a delay with the first house; someone didn't sign the title document correctly and the company wouldn't fund. So funding has been held up on the 3 subsequent closings. We have been told it should fund tomorrow, Friday the 16th, but we're not holding our breath. We don't know what to do. We went ahead and made our September mortgage payment on our Texas home despite the fact that we have officially closed the sale, but because nothing has funded, any late charges would reflect on our credit. OUr Texas realtor is exasperated, as are we. She keeps saying, "the sale has closed", but we haven't gotten our money yet and as far as we're concerned, the sale isn't closed until all funding is complete. And we have not allowed the keys to be turned over so the buyers could move stuff in.

Do we have any recourse? Or are we just stuck in real estate limbo waiting for the money to come through? And what is the real meaning of the "sale has closed"? We always thought it meant papers are signed and money is transferred as appropriate. Any help or info it greatly appreciated.

The real meaning of close is when the deed is recorded. Money is transferred before the deed is closed. Seller and Buyer sign papers before money is transferred. So deal is not considered "closed" when papers are signed, nor is it considered "closed" when money is transferred. It is "closed" when the deed is recorded.

Unfortunately, this domino effect does happen a lot in RE transactions and in most cases you have to play the waiting game. Speaking with the principle broker like HomeGuru suggested is probably a good idea to get some better guidance. Ask your agent to set up a meeting.

[kwccole]

Thank you all for your replies and advice. I have just received a call from my realtor informing me that the money has been transferred, and that she had been called to go pick up her commission check. Our proceeds have not yet hit our bank account, and I'm getting ready to call the mortgage company to make sure they got the payoff.

Honestly, I am in shock that the funding came through today because of all the delays we have had. The most frustrating thing has been that our original contract did not contain any contingency clauses about other house sales having to close before ours could close. Nothing was ever said about any of that to either us or our realtor until 3 days before the closing was orignially scheduled to occur.

Our buyers said they wanted a simple, clean sales contract with no contingencies or allowances and they wanted to close as soon as possible. It's been anything but simple, and has been a real learning experience and not a pleasant one. Not sure if we will pursue this further "as a matter of principal" and would only do so to prevent that incompetent realtor from causing such stupid delays again. Or just be glad to be done with it...I'm inclined to have a drink and be done with it. Thanks again for the info.

[seniorjudge]

...she had been called to go pick up her commission check...

Always a good sign....

[CAlandlords]

Originally Posted by kwccole

Thank you all for your replies and advice. I have just received a call from my realtor informing me that the money has been transferred, and that she had been called to go pick up her commission check. Our proceeds have not yet hit our bank account, and I'm getting ready to call the mortgage company to make sure they got the payoff.

Honestly, I am in shock that the funding came through today because of all the delays we have had. The most frustrating thing has been that our original contract did not contain any contingency clauses about other house sales having to close before ours could close. Nothing was ever said about any of that to either us or our realtor until 3 days before the closing was orignially scheduled to occur.

Our buyers said they wanted a simple, clean sales contract with no contingencies or allowances and they wanted to close as soon as possible. It's been anything but simple, and has been a real learning experience and not a pleasant one. Not sure if we will pursue this further "as a matter of principal" and would only do so to prevent that incompetent realtor from causing such stupid delays again. Or just be glad to be done with it...I'm inclined to have a drink and be done with it. Thanks again for the info.

Congrats on finally closing!!

Even though someone told you "It was that Realtor's fault" it very well may not have been. Realtors are not responsible for ordering appraisals. That's Loan Officer's job. There are many, many things that can cause delays in RE transactions and it does not always necessarily mean that the Realtor is incompetent. I understand your pain and frustration (i've been through it myself) but I think having a drink and being done with it is your best bet!

[seniorjudge]

Originally Posted by CAlandlords

...Even though someone told you "It was that Realtor's fault" it very well may not have been....

EVERY real estate transaction is fraught with peril and some people do not have the nerves for it.

Do not blame the real estate agent (Realtor® or just plain agent): he/she/they do not get paid until the deal closes, so they are always wanting to get the deal closed.

(I am not a real estate agent and never have been and never plan to be.)