Sometimes it happens

So there we were, two days before closing and that call no one likes was made. The buyer can't close. The bank won't give them the loan.

 In today's marketplace, lending regulations are tighter than ever, so when a licensee is working with a buyer or seller, it's important to communicate. Talk about the loan program guidelines. Talk about the importance of contract dates. Talk about what happens if one side or the other doesn't perform. It's easy to discuss what the client wants. Or how the home will look with a fresh coat of paint. But what happens when the bank decides the buyer isn't going to live in the home enough days out of the year to satisfy the loan program guidelines? Huh? That's right! Because the buyer works in another town and will not be home 181 days out of the year, they are considered a non occupying owner (for this program). The buyer begged, she said she was told as long as her "stuff" is there, she lives there. But it doesn't work that way. It's a conversation the buyer should have had with the lender and the licensee before the offer was written. And because the lender is part of the buyer's home buying team, the buyer will lose a substantial amount of earnest money. Don't be afraid to ask. It's free.

But here’s the rub…the buyer can always ask for their money back. The buyer and seller usually try to negotiate how this all will work out, but if they don’t agree, the broker holding the earnest money can decide where the money is disbursed. It can all get real messy, just from not having a very basic conversation.