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Posts Tagged ‘Appraisals. Loan Contingency’

Cancelled Escrows

J. Andrew English J. Andrew English
Wednesday, August 12th, 2020

Recently, we have seen a very strong uptick in the # of properties going under contract. This is true of both our firm and other listings on the Multiple Listing Service. However, we are also seeing a rise throughout the MLS in escrows that are falling apart. The # 1 and #2 reasons escrows are falling apart right now relates to appraisals and loans being declined. While interest rates are incredibly low, more and more lenders are declining loans for buyers for one reason or another. While it is still very feasible to obtain a loan and close, lenders are tightening up. As a seller, be prepared to protect yourself in markets that allow you to protect yourself. For example, in TX, take advantage of the 3rd party financing addendum by limiting the # of days the offer is contingent upon financing. The same is true in CA. Utilize the hot market and purchase agreement language to best protect yourself.