Closing Problems

What is the name of your state? Texas
Our closing did not happen today because the Lender did not provide paperwork on time. The title co. just called the lender to tell them that they received the instructions but there is no mention on what to do with extra monies. Title co. and realtor are getting nervous and said they don't know what's going on. Lender happens to be loan underwriter and said the title co. doesn't know the difference between a mortgage broker and a mortgage banker. Lender also said that the instructions come when the funding goes through (24 hours after closing). We already had to schedule another closing (tomorrow) and we are concerned that our lender may not be truthful. Any advice on what we should do?
First time Buyer
Christine

[HomeGuru]

Originally posted by cwigton
What is the name of your state? Texas
Our closing did not happen today because the Lender did not provide paperwork on time. The title co. just called the lender to tell them that they received the instructions but there is no mention on what to do with extra monies.

**A: interesting as the title /escrow company can still close and hold the extra monies until they get lender confirmation. Usually the extra monies go to the borrower.
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Title co. and realtor are getting nervous and said they don't know what's going on. Lender happens to be loan underwriter

**A: a lender is generally a financial institution that loans money ie. bank, savings and loan, mortgage company, investment company etc.. Lenders hire loan underwriters.
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and said the title co. doesn't know the difference between a mortgage broker and a mortgage banker.

**A: it makes no difference if there is or is not a mortgage broker or banker and where the money is coming from. This issue has no bearing whatsoever on the lender's ability to loan money and close.
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Lender also said that the instructions come when the funding goes through (24 hours after closing). We already had to schedule another closing (tomorrow) and we are concerned that our lender may not be truthful. Any advice on what we should do?
First time Buyer
Christine

**A: generally, the lender's instructions come before or at the time of funding. Sounds like this lender is wasting time.

Thank you for getting back so quickly. We had another botched closing today. The underwriter came to the closing but did not bring specific instructions again. We talked to his company by phone (located in CA) and they don't understand why we can't just sign. They also mentioned that the HUD(?) has already been signed and approved. The title company said they cannot close without knowing where to send the extra $20,000.

The title company is nervous and I'm not sure what to do at this point. Our realtor says hang in there and if all else fails we'll ask the underwriter/lender to transfer our paperwork to another approved FHA lender. What would you do?
Thanks again,
Christine, First time Buyer

[HomeGuru]

Sounds like you are almost there. Just wait a little longer.
HUD-1 is the closing statement.

Hello again, Our closing finally happened. We signed, they signed and the lender said he sent funding electronically at 1pm on Friday. The title co. still has not received funding and the lender said they are having a problem locating the tracking number. We had to cancel our movers and we're living out of boxes in our old rental. Our landlord happens to be our realtor and is trying his best to put off the new tenants. The seller won't let us take posession because we had a 24 hour after funding clause. If the title co. still hasn't received funding on Monday, my realtor said we need to have our file transferred to another FHA approved lender and start all over. The title co. said it doesn't usually take this long to transfer monies. What do you think?

Christine, First time Buyer

[HomeGuru]

Keep waiting. By Wednesday it should all be settled.