What can I do if the closing date is coming and the lender isn’t ready?
The last day for closing in my client’s contract to sell his house is tomorrow, the last day of the month. The buyer’s lender won’t have the loan processed or the closing documents ready. My seller is upset, and so is the buyer. What can my client do, and how can I prevent this problem in future transactions?
Since the contract does not include an automatic extension to allow the lender time to complete his role, your seller has two choices. He can amend the contract to extend the closing date, or he can consider the buyer in default.
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Check this helpful suggestion to avoid a late closing with the lender provided by the Texas Association of realtors:
To prevent this situation in the future, suggest to your sellers and buyers that their contracts specify a closing date in the middle of the month. The real estate closing process backs up at the end of the month. Any savings, real or perceived, gained by closing at the end of the month are more than offset by the reduced stress of closing between the 10th and 20th of the month.
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