Author Topic: Closing date anxiety  (Read 1133 times)

norabird

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Closing date anxiety
« on: August 02, 2014, 08:13:45 AM »
Not technically a MMM or investing question, but my parents are buying an apartment that I will live in--an investment for them now that their house is paid off, with rent paid by myself and a roommate albeit not at market rates. It went into contract in December but was under renovation in the first half of the year, and then there were paperwork issues related to my parents taxes not having actually gone through this year.

The commitment letter from the bank expires next Friday. The supposed 'last' required piece of paperwork cake through two days ago. My mom says she thinks closing will be scheduled for...next Thursday or Friday. As in, the last day of the commitment letter.

I'm mostly out of the process but i have already found a replacement roommate for where I am currently living and will have to do some scrambling, pay for an extra month's storage, etc if the closing doesn't actually happen at the last minute. I assume my parents then have to re supply all the paperwork, apply for a new commitment letter, and don't know how long that will take.

So, can anyone advise--do closings scheduled under the wire usually go through? Is there a very real chance it will prove to not happen? If so, how long of a process/how sure of a thing is getting the next commitment letter if closing doesn't occur?

I'm trying to not worry, but am curious at just how nightmare a scenario a closing set on the last possible day is. My experience thus far tells me that it will not come off without a de,ya  because the delays have already been nonstop.

Thanks!

DoubleDown

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Re: Closing date anxiety
« Reply #1 on: August 02, 2014, 10:15:20 AM »
I can't say what will happen in your particular case, but it is very common for hitches like this to come in all the way up to closing, and they are almost always worked out on time (assuming you have a competent settlement agent). So chances are very good everything will work out. Have your parents keep on the settlement agent and other parties to make sure they're doing what they need to do, but don't worry. You might come up with some alternate plans "just in case" but I'll bet they won't be needed.

waltworks

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Re: Closing date anxiety
« Reply #2 on: August 02, 2014, 02:13:50 PM »
SOP for real estate. It will be nice and exciting right up to the last minute, probably. Especially if your parents aren't great about having all their ducks in a row in advance. But it will get done. Remember that everyone involved (except in rare cases) wants the deal to go through.

-W