Getting that mortgage payoff. You would think that for a lender, the next best thing to getting their monthly loan payments on time would be to get their principal balance paid in the event of a home sale or refinance.
My client, whose townhouse is located at Kendall Greens (a small community off Kendall Drive and 147th avenue), had to try three different paper-requests and two pissed-off phone calls to the lender in order to get it done. Why?
Mortgage payoff signatures don’t match!
Yup. My client got the mortgage to buy her place several years ago and she did not remember how she signed. And the signature on the mortgage payoff request had to match her signatures when she first bought the property.
Look for the closing documents from when she bought the townhouse? She did. But it took sometime since they were in storage.
This little debacle delayed closing by seven calendar days. It also aggravated both buyers and sellers since they were both packed and ready to move (buyer was already living with a family member and furniture in storage due to delay).
Now. Under normal circumstance, the delay may not have been such a big deal since average closings take 30-40 days and this is enough time to solve any unforeseen issues.
BUT…due to the fact that this was a cash deal which closed in about 20 days…that is the reason why things got messy. Both buyer an seller were ready to close with a snap of the finger…therefore, its made this hurdle appear like a wall.
Tip: keeping calm is key during these surprises.
- Stay on top of the title company to continue to push for new payoff letter with updated request.
- Stay on top of seller to not stop phoning lender and demanding quicker response to the request.
- Talk to buyer every day so that they know you are on top of it, and not loose deal over something so silly yet critical.