Loan Docs/Closing

**Jezebel** · 05-03-2009, 02:21 PM

We were suppose to close on our house last Wednesday, but everything was delayed...finally received and signed loan docs on Friday. These docs were promised to us over a week ago. The FHA loan was initially with Countrywide, then last Monday it was taken over by Bank of America.

I keep hearing these horror stories of closings being delayed for months. A friends closing was delayed two months with Countrywide, and now tomorrow we have to bring in a sizeable deposit to close. Closing is expected to be on Tuesday.

Are we being naive to expect closing to really happen on Tuesday? If the bank delays closing and the seller decides to cancel, can they take all of our deposit money or just the earnest money deposit? What happens if we wait for the bank's clearance to close to drop off the remaining deposit/closing costs? The escrow company is saying that the bank wants to see that our money is deposited with them when they give the clearance to close. Will it just close a day later if we wait for the clearance to drop off our deposit money?

**stevetrang** · 05-03-2009, 05:39 PM

You do realize that Bank of America and Countrywide are one in the same, right? If you have loan docs and all other paperwork at title, then the seller would have to be certifiably crazy to cancel the deal. That being said, they are only entitled to your earnest money, and not your deposit (at least in AZ, and as always, consult your attorney). Additionally, they would need to issue a cure notice prior to breach, they do need to give you time to rectify the problem in writing first.

You can't get a clear to close without depositing your down payment and closing costs.

**Vegasloanlady** · 05-04-2009, 12:24 PM

If the bank delays closing and the seller decides to cancel, can they take all of our deposit money or just the earnest money deposit?

If you can not close as a result of the lender denial of the file and your deal was subject to financing then you should be able to get 100% of your earnest money back.

**REITrainingWhse** · 05-04-2009, 01:57 PM

Originally Posted by Vegasloanlady

If you can not close as a result of the lender denial of the file and your deal was subject to financing then you should be able to get 100% of your earnest money back.

The key to that above statement is that the financing contingency WAS NOT WAIVED!

Basically, it all comes down to what was written in the offer to purchase. There is where you find your answers. Who cancelled the contract? Then you would read what the possible damages that could be sought by the other party. If the offer to purchase doesn't outline the specifics, first you need to get one that does for the future, but then you need to look to the more generalized terms of breaking the agreement.

Again, you need to understand the agreements that you sign, and know what happens throughout the entire process.

Later.