House closing obstacle – FML

The drama continues. As I draw to the finish line (72 hours until closing), one more friggin’ obstacle just popped up. The earnest money that I put down back on May 26, has come into issue. The seller’s required that the funds ($1500) be in the form of certified funds (check, or money order). I happened to purchase 2 money orders from my local supermarket. One for $1000 and the other $500. Today, the lender calls and says we can’t account for those funds coming from any of your accounts, and when we pulled your balance from your bank this past Friday, your account balance is below $1500. So how did you get this money?

Thanks to the Patriot Act, all funds used for earnest money and other things need to be explained and verified. So how did I get the money? Well, since I knew I was buying a house, thought what better time to clean out my junk and sell some stuff. I decided to put ads on local web sites, and sell my junk. Guitar, amp, computer, and miscellaneous crap. I generated about $1300 in cash, and then subtracted the remaining $200 from the ATM thus giving me a total of $1500 cash, and purchased money orders.

Now, we have a couple of options. Since I get paid on Thursday, the account balance will be well above $1500 and balance statement from bank will verify. The underwriter can then subtract the $1500 and then we can move forward with closing, however it will push us back until probably July 5, versus the seller’s requested date of June 30. The other option is for the seller to remove the earnest money from the deal, then the underwriter doesn’t have to verify funds and we can close on the 30th. Another crazy option, was that a friend/family member could gift me $1500. However, since I have no family and few real friends, the only other option would be my good friends. They would have no problems writing me a check, unfortunately, the wife is my realtor so that would look even crazier.

My lender and realtor are in the process of calling the seller’s broker to explain the situation and see if they would just remove the earnest money from the deal so we could go ahead and close on Friday. If not, we have to wait until the 5th of July. To me, I could really care less, it’s the seller’s who are pushing the June 30th date. Keep in mind, this is a VA loan, and typical closing is normally done at 45 days. Because the seller has been pushing for their date, my lender has worked tirelessly to get this done and we are at 21 days.

Another situation, that I talked about in an earlier blog, was the roof situation. Back in May, when I had home inspected, was determined that a new roof needed to be installed, and was condition of purchase. Sellers’ agreed and stated they would have it done. Now when the VA appraiser went out, he noted the same deficiency and indicated that appraisal was conditional on roof being completed. Weeks went by and we did not hear word as to when roof was to be completed. Until last week, we finally got word from seller’s agent that roof is to be installed tomorrow, 48 hours before closing. This does not give VA Appraisar time to re-inspect. However, because they seller’s are wanting a closing date this Friday, the underwriter agreed to put in a conditional approval based on roof being completed.

My final home walk thru was scheduled for 11am with closing at 1230pm on Friday. Now that this final obstacle has occurred, unless the seller agrees to release earnest money, all this can change. Now I just wait by the phone to hear their decision. To me it seems like a no brainer, but I have learned to not get my hopes up. I’ll pray for the best and expect the worst.

Scared and frustrated,

Mike

P.S.

Thank you “L” for keeping me calm ❤

Photo by Nik Shuliahin on Unsplash

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