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real estate sales warning

Discussion in 'General Discussion' started by Tango3, Oct 24, 2009.

  1. Tango3

    Tango3 Aimless wanderer

    Realtor and seller get bitten as buyer closes and moves in but bank of america does not fund the deal...[shtf]

    Hi Everyone,

    I don't post often, but I feel this is a really significant piece of news. And I'd like to do what I can to help you protect yourself with a bit of advice.

    My husband and I are selling our home here in northwest Florida in preparation to return to the Pacific Northwest. I am a former realtor and selling the home "By Owner". I spoke with another realtor today who is showing my house next week. She related that she closed a residential real estate transaction last week where Bank of America was the lender. BofA has failed to fund the transaction. The title company is waiting, as well as the realtor for her commission, and no doubt the seller is still waiting. She said that the buyer has already moved into the home. As a former realtor, this is some of the most frightening news I've heard.

    If you are in a position where you are selling your home, please take these steps to try and safeguard yourself. As you negotiate the sales contract, DO NOT accept "possession on closing". That means that the buyer gets the keys to the house after you have signed the papers with the title company. Have your agent write into the contract "possession upon closing AND FUNDING". You don't relinquish possession of the property until the transaction has funded.

    I have TWICE had a real estate sale fail at the last minute. At the very least, I write into the contract "possession on closing and funding plus 1 day" (or 24 hours). That gives me time to make sure the darn thing is going to close. Under most circumstances, the title company will wire transfer funds to your account. Verify that those funds are there before giving possession.

    Seek the advice of an attorney, but do protect yourself. It seems to really be getting ugly out there!
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