Replies to This Discussion

Permalink Reply by joe beauchamp on September 11, 2012 at 2:07am

Very usual. Much depends upon who the investor is for the seller. Then how competent the negotiator is. Then any wrinkles in the deal, like liens. And, there seem to be blackholes in BofA where the negotiator will come back with "I don't know why it is taking this long" for something.

Permalink Reply by Alex Krumm on September 11, 2012 at 2:29am

Hi, Jeff - unfortunately it is normal.  In my experience approval letters almost always take longer to arrive than anticipated (especially with BOA); most approval letters do allow sufficient time for mortgage approval after they're issued and I don't generally advise my customers to do ANYTHING that costs money (inspections sometimes excluded) until the sale is approved in writing.

If you have to extend your rate lock, try to get the listing agent to pay for it ... it was, after all, their advice to lock.

Alex Krumm

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Permalink Reply by Jeff on September 11, 2012 at 1:47pm

Thanks Alex I already tried that route to have the agent cover it, the conversation didn't go well. After speaking with my lender and trying to get a free extension out of him since he technically locked without an executed contract, he apologized for the mistake but is going to have to check with his supervisor to see if he can get it approved. The only other option I have is to go with another bank, which I am dreading starting over again, but I have to do what is best for my bottom line. Do you have any idea what the average wait time is on an approval letter, or is that just shooting in the dark and there is no real answer for that.

Thanks to everyone for the input hopefully things will go alot smoother.

Permalink Reply by Rachael Babinchak on September 11, 2012 at 6:59am

Lenders I've worked with would never have ordered an appraisal, conducted an appraisal, or locked in a rate without an approval letter-they require a copy before they do anything.  They also know that anything could happen to delay the letter arriving.  Sorry for your experience.

Permalink Reply by TOP END Properties on September 11, 2012 at 5:27pm

I would not have ordered the appraisal until they got the written Approval Letter.  The counter offer may have been by Bank of America (as the servicer) and so the Investor does not have to accept it.