60 COMMON PROBLEMS
DURING THE ESCROW
The Lender:
1.
Lender does not properly pre-qualify the
borrower.
2.
Lender decides last minute they don’t like the
borrower.
3.
Lender decides they don’t like the property
4.
Lender wants property repaired prior to closing.
5.
The market raises rates, points, or costs.
6.
Borrower does not qualify because of a late
addition of information.
7.
Lender requires at last minute a second
appraisal.
8.
The borrower does not like the fine print in the
loan documents that are received 3 days before the scheduled closing.
9.
Lender does not simultaneously ask for all needed
information from the buyer – they ask for information in bits and pieces.
10.
Lender pulls a “bait & switch” on the buyer
11.
Lender does not have the money, so makes up some
excuse for rejecting the buyer or delaying the transaction.
12.
Lender loses a form or misplaces the entire file.
The Buyer:
13.
Did not tell the truth on the loan application.
14.
Did not tell the truth to their real estate
agent.
15.
Submits incorrect tax returns to lender.
16.
Lacks motivation.
17.
Does not place the deposit into escrow upon
opening of escrow.
18.
Source of down payment changes.
19.
Family member or friends do not like the house
buyer chose.
20.
Is too picky regarding condition of the house.
21.
Finds another property that is a better deal.
22.
They are “nibblers” (always negotiating) and
angers seller/lender/agents.
23.
The buyers bring an attorney into the picture.
24.
They do not execute the paperwork in a timely
manner.
25.
They do not bring their final down payment money
to escrow via a cashier’s check or wire the money.
26.
Has job change, illness, divorce, or other
financial setback.
27.
Comes up short on money they stated they always
had.
The Escrow Company:
28.
Fails to notify agents of unsigned or unreturned
documents so that the agents can cure the problems.
29.
Fails to obtain information from beneficiaries,
lien holders, title companies, insurance companies or lenders in a timely
manner.
30.
Lets principals leave town without getting all
necessary signatures.
31.
Incorrect at interpreting or assuming aspects of
the transaction and then passing these items on to all parties such as lenders,
buyers and sellers.
32.
Loses paperwork.
33.
Incorrectly prepares paperwork.
34.
Does not pass on valuable information fast
enough.
35.
Does not coordinate well so that many items can
be done simultaneously.
36. Does not bend the rules on small problems.
37.
Does not find liens or any title problems until
the last minute.
The Seller:
38.
Loses motivation.
39.
Illness, divorce, death, job changes etc.
40.
Has hidden or unknown defect that are
subsequently discovered.
41.
Home inspection reveals average amount of small
defects that the seller is unwilling to repair.
42.
Removes property from the premises that the buyer
believed was included.
43.
Is unable to clear up problems or liens.
44.
Last minute solvable liens are discovered.
45.
Seller did not own 100%of property as previously
disclosed.
46.
Seller thought partner’s signatures were “no
problem” but they were!
47.
Seller leaves town without giving anyone Power of
Attorney.
48.
The notary didn’t make a clear stamp when
notarizing the seller’s signature.
49.
Seller delay the projected move-out date.
50.
There is a city violation (lack of permit) that
needs to be corrected.
The Appraiser:
51.
The appraiser is not local and misunderstands the
market.
52.
No comparable sales available.
53.
Appraiser delays (too busy, etc)
54.
Makes important mistakes on appraisal.
55.
Bring in value too low.
The Inspection/Termite
Companies:
56.
Too picky with conditions and “scares” the buyer.
57.
Infuriates the Seller.
58.
Makes mistakes.
59.
Delays Reports.
60.
Written report (received a number of days after
the inspection) reveals additional problems which inspector did not verbally
mention to the buyer at the time of the inspection.