List of Possible Types of Problems


Borrower:
Does not tell the truth on the loan application. Loan program changes with higher rates, points and fees.
Submits incorrect information to the lender. Child Support not disclosed on application.
Has recent late payment on credit report. Borrower is a foreign national.
Found out about additional debt after loan application. Bankruptcy within the last 2 years.
Borrower or Co-borrower loses job. Mortgage payment is double the previous housing payment.
Income verification lower than what was stated on loan application. Borrower/co-borrower does not have steady 2-year employment history.
Overtime income not allowed for qualifying. Interest rate increases and borrower no longer qualifies.
Applicant makes large purchase on credit before closing. Borrower switches to job requiring probation just before closing.
Illness, injury, divorce or other financial setback during escrow. Borrower switches to job from salary to 100% commission income.
Lacks motivation. Borrower/co-borrower dies.
Gift donor changes mind. Family members or friends do not like the home buyer chooses.
Cannot locate divorce decree. Buyer is too picky about property in price range they can afford.
Cannot locate petition or discharge of bankruptcy. Buyer feels the property is misrepresented.
Cannot located tax returns. Buyer has spent money needed for down payment & closing costs & comes up short at closing.
Cannot locate bank statements. Buyer does not properly “paper trail” additional money that is from gifts, loans , etc.
Difficulty in obtaining verification of rent. Does not bring cashier’s check to title company for closing costs and down payment.
Sellers:
Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.) Delays the projected move-out date.
Cannot find a suitable replacement property. Did not complete the repairs agreed to in contract.
Will not allow appraiser inside home. Seller’s home goes into foreclosure during escrow.
Will not allow inspector inside home in a timely manner. Misrepresents information about home to the buyer.
Removes property from the premises the buyer believed was included. Does not disclosure hidden or unknown defects and they are subsequently discovered.
Is unable to clear liens against their property-short on cash to close. Final inspection on new home does not pass.
Did not own 100% of property as previously disclosed. Builder has too many cost overruns.
Thought getting partners signatures were “no problem,” but they were. Seller does not appear for closing

& will not sign papers.

Leaves town without giving anyone Power of Attorney. Seller dies.
The Property:
Municipality will not approve septic or well. Home is destroyed prior to closing.
Home was misrepresented as to size and condition. Home not structurally sound.
Home is uninsurable for homeowners insurance. Property incorrectly zoned.
Portion of home sits on the neighbor’s property. Unique home and comparable properties for appraisal are difficult to find.
Inspector:
Home inspector not available when needed. Inspection reports alarm buyer and sale is cancelled.
Home inspector too busy to schedule inspection when needed. Home inspector to picky about condition of property, hoping to create work for themselves.
The Escrow/Title Company:
Fails to notify lender/agent of unsigned or unreturned documents. Fails to obtain information from beneficiaries, lien holders, insurance companies, or lenders in a timely manner.
Lets principals leave town without getting all necessary signatures. Loses or incorrectly prepares paperwork.
Does not pass on valuable information quickly enough. Does not coordinate well, so that many items can be done simultaneously.
Does not find liens or any title problems until the last minute. To busy to schedule closing when needed.
The Appraiser:
Is not local and misunderstands the market. Is to busy to complete the appraisal on schedule.
No comparable sales are available. Is not on the lender’s “approved list.”
Makes important mistakes on appraisal and brings in value to low. Lender requires a second or “review appraisal.
The Realtor(s):
Have no client control over buyers or sellers. Delays access to property for inspection and appraisals.
Unfamiliar with their client’s financial position- do they have enough equity to sell. Does not get completed paperwork to the lender in time.
Inexperienced in this type of property transaction. Takes unexpected time off during transaction and can’t be reached.
Jerks around other parties to the transaction – has huge ego. Does not do sufficient homework on their clients or the property.