Mortgage delay

Don't be nervous. Nyc re only goes up per riversider.

If I were the buyer, I'd ask for an addl 3% off at closing. But I'd be subtly raising my eyebrows at the chesshire smiling borkers at either end of the table.

You are welcome.

Depending on how good the complete underwriting package was for your buyer up front and how good the banker was at staying on top of the underwriter to get the loan done, 45 days doesn't see unreasonable. If it doesn't come through in the next week, though, as they claim...then I might start getting nervous. Do you know how strong their financials were and how much they were financing? That might be a big factor in the timing, if more than 30%, it's much easier for them to get done quickly...if less, will definitely be more scrutiny.

30% down I meant, so 70% financing...

Arfie - has it been 46 days and they havent gotten their mortgage commitment? Or final loan clearance to close? If they havent gotten their commitment letter then 46 days is a bit long. But if they are just waiting on final paperwork to clear to close then that's typical. sunny.hong@bankofamerica.com

It has now been 54 days since we went into contract on our condo and the prospective buyer still does not have a mortgage commitment. Our realtor has been in touch with the buyer's mortgage broker and has been told there is no problem because the bank's review department has "backed it up." Does this make sense to anybody? Any advice on how to proceed from here? The contract we signed gave the buyer 45 days to obtain a mortgage and we have not agreed to an extension.

Take the deposit. Really quite simple. It maybe the buyers are trying to re-negotiate or they are getting cold feet in either case, the bubble continues to deflate and their not closing will impact your re listing due to sonny hong not giving the new buyer a higher mortgage limit. IMHO in a buyer's mkt, 100% of that shortfall will hit the seller. Call your attorney send then notice of default. You'll be in a lawsuit but at least you'll get 10% to play with.

Arfie, was there a standard mortgage commitment clause in the contract? If so, buyer and/or seller can walk (i.e. contract is void) unless extension was granted, which you have not done.

If there's a standard mortgage commitment clause in the contract, the deposit must be returned to the buyer.

I submitted my paperwork and got a commitment letter about 7-8 days later.

"Call your attorney send then notice of default. You'll be in a lawsuit but at least you'll get 10% to play with."

If you go down that route, don't be stupid like this other situation NWT posted. You likely have no case (too hard to prove), and a judgement 2 years down the line would likely hit you for full legal costs plus 9% interest per year.

Nevertheless, threats might be helpful here to get some light shed on the situation.

Also, maybe let your realtor know that they will be fired if this doesn't close. That'll get the ball rolling on getting you real info.

I am a mortgage broker who closes loans with Wells Fargo. Wells will get a commitment in five business days for a purchase. Don,t know who you used, but didn't you say something after a few weeks?

I believe. The seller should give you extra time. I don't charge an application or credit report fee.

Ellen Silverman
Licensed mortgage broker
Licensed real estate broker
212-786-9682
Www.esfunding.instanlender.com

The buyer's mortgage broker should call the bank and find out exactly why the paperwork is sitting. It's probably that the lending bank has some questions about the building -- but they're not going to get answered if no one knows what they are.

From your end, you/your agent should be piping questions from the buyer's agent to the board, and getting answers as quickly as possible.

Simultaneously, the lawyers should be negotiating a contract extension, if that's what you want.

ali r.
DG Neary Realty

streetsmart, are you still seeing 5 business days for commitment through wells? we submitted our docs to wells about 6 weeks ago, and are still waiting for a commitment letter. they are not requesting any additional docs/info. just stuck in underwriting. utterly frustrating.

@Ekartash I agree, the current situation is BS we went 94 days from application submission to close eg it took 91 days for the bank to finish the mortgage application then 3 days for the lawyers to sort out their end.

I honestly dont think we would use Chase again based on how long they took.

Good morning Arfie,

As of yesterday EllieMae is reporting the National Average for Application to Closing is 48 days.
Here's a link to Mortgage News Daily: http://www.mortgagenewsdaily.com/08152012_loan_metrics.asp

In my personal experience here in the NY Metro region, Local Mortgage Bankers are typically ready to close in about 30-40 days, including Bank Attorney review. I have heard from professional associates (mortgage professionals, Realtors and Attorneys who close for Banks) that typical Application to Closing times with the big banks in the New York area run 90 days on average.

Unfortunately this is the "State of the Art" in 2012. Best to sit back and relax. Your Attorney should check in periodically with the Purchaser's Attorney for an update and, if that Attorney requests an extension to the contract for commitment and/or closing, grant it. Your Purchasers are a lot more anxious than you, I promise you.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528