Another new hurdle for home sales and purchases in Southern Litchfield County, CT.
We are seeing another new hurdle arise as lenders tighten their grip. I recently wrote about mortgage extensions becoming the new normal in real estate, and it is causing even more issues to crop up in home sales.
Muliple extensions are asked for and granted, the closing date looms large in front of both buyers and sellers, however it is unclear if they will indeed get their mortgage. Sellers get very, very nervous and buyers are on the edge of their seats.
Will everyone be moving after all?
Some sellers are hesitant to order movers, and this takes time and a coordinated schedule. Many times they have a purchase that needs to be coordinated with the sale of their property.
Buyers need to know when they are moving, for many obvious reasons!
What do you mean I have to move out by the end of the week? Yesterday they hadn't even gotten a commitment for their mortgage?
The mortgage contingency is finally met... and a clear to close comes. What could be wrong with that? There is no time for planning. The buyers lender expects the house will close in a very short period of time after they issue that clear to close.
Sellers are left scrambling to get moved out. Their frustration mounts even higher at a time when they are already frustrated enough by all the delays caused by the lender.
Buyers are left scrambling to get moved in at the last minute. They may have had to pay another rental payment, mortgage payment due to all the extension requests. Perhaps rate locks are now set to expire, this closing must happen on time!
This seems to be especially true for certain loans like CHFA and USDA.
Emotions run even higher and anger levels can increase.
Keeping the real estate ball moving these days can be an ever increasing challenge. There are many unexpected and unintended consequences with the new normal in real estate. Buyers and sellers both need to be totally aware of these bumps and twists in the road for sure.
Andrea Swiedler, Realtor, Southern Litchfield County Real Estate
2017 President, Greater New Milford Board of Realtors
2017 Connecticut Magazine 5 Star Realtor
Coldwell Banker Residential Brokerage
Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776
© Andrea Swiedler 2009 - 2017
Always do right. This will gratify some people and astonish the rest. - Mark Twain