Do You Think Lenders Who Delay Closing Should Pay a Penalty?

Thoughts from a seller who experienced a 6 day delay in funding.

Background: A seller listed his property and accepted an offer with a closing date in 7 days.  On the 7th day the lender stated they wired the funds.  This happened the Friday before the Memorial Day weekend.  On Tuesday after the long weekend, the wire for over $600,000 was tracked at the title company and it did not arrive.  Wednesday the lender said he had to pull the wire back because he didn’t know how to work through his warehouse.  Wednesday evening - lender provided the Fed Ref number.  Thursday morning the wire STILL wasn’t available.  Eventually the wire(s) were located and the property funded…..but it was 6 days past the original closing date.

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Unhappy Seller

I may bring this whole debacle to the Real Estate Commission based on written promises made, and broken.. This has been the most poorly managed transaction I have ever seen; I felt like I was dealing with Laurel & Hardy; unprofessional would be a kind way to describe it.

Demanding Compensation

To the buyer’s agent:  I suggest you round up the folks and respond with the $5,000 compensation we previously requested.  If you do, I will not move forward with the communications to the Real Estate Commission and any other relevant authorities, including ethics committees.  There is more than plenty of documented misinformation, broken promises and so forth. There are missed deadlines, a real litany of failure on your part as well as others. As you know, this whole transaction has been a debacle and no matter what, you are the lead.

*  What are your thoughts?  

*  What if the seller needed the funds to close on a replacement property?  

*  What if someone was waiting to close on this home so they could move in?

*  Do you think lenders have enough skin in the game?  

*  Do you think lenders should be charged a penalty for closing late?