Delayed closing

I put an offer in on a coop property in NYC January 12. It was almost immediately accepted. There were some delays by the seller (1-2wks) not being available to sign and exchange contracts. My bank took two weeks to provide a conditional approval to loan via its underwriting process. The board application took about 4 weeks to approve (this was granted March 22). During this time the bank went... [more]

I put an offer in on a coop property in NYC January 12. It was almost immediately accepted. There were some delays by the seller (1-2wks) not being available to sign and exchange contracts. My bank took two weeks to provide a conditional approval to loan via its underwriting process. The board application took about 4 weeks to approve (this was granted March 22). During this time the bank went about its appraisal process along with obtain documentation. Our interview was on March 28. Board approval granted April 3. All seemed good and we were set to close April 10. My bank then held closing ostensibly due to new financial information received (or not received) on the co-op. Their financial information projected a loss even though monthlies had increased. This is on top of losses sustained in the previous year. The bank would not disclose the financial information they had received and I could not obtain the same from the managing agency. Because of the co-op’s financials and apparently their choice of insurance, a loan to this “project” could not be backed by Fannie Mae or Freddie Mac (these two securitize the vast majority of American home loans). So the bank pursued a “portfolio loan” - one at their own risk. It is now April 18 and this loan has just been secured. Apparently, the seller’s attorney is waiting on some “payoffs”. My living situation is on edge because it turns out my current landlord/friend has been illegally subletting her place to us and we will be forced out soon. First world problems, but after a 100days from acceptance of offer, I have reached such a state of lethargy - I just want to hand over the money and get the keys. Am really frustrated by the bank because it appears it did not carry out its due diligence back in February/March. Wondering if anyone else had a situation where the bank decided to delay proceedings and resorted to providing a portfolio loan? [less]