Laguna Beach Realtor in Action -- 9.22.10

And now this week's Case From the Hillary Caston Archives…

Buyer A had seen her share of Laguna Beach homes. Nibbled on a few. Now she was ready to buy. Had her sites on a choice condo in a fantastic location, with an irresistible price tag to match. Yes, she was one serious player. And to prove it, she plunked down a serious amount of cash as a security deposit. $20,000 into the Escrow ‘vault’ it went.

We got off to a splendid start. Both buyer and seller signed all the necessary documents stipulating that all contingencies would be removed once the loan was approved -- in the customary 17 day period.

As the deal glided forward, the buyer took care of details like getting inspections done, negotiating a repair request, signing the full gamut of disclosures, and receiving all condo association documents such as budget and minutes. Things were progressing just as smoothly in the loan-approval realm. The bank had all the necessary paperwork from the buyer - tax forms,
verifications, credit scores, appraisal, etc. All in all, this Laguna Beach condo was looking mighty good.

Then the lender threw us a curve ball. Surprise! The loan documents would require another 3, very unanticipated days of ‘review'. According to the lender, we had loan approval – with conditions. We’d just have to wait. Unfortunately, our 17 day period to remove all contingencies was about to expire NOW! Time’s up. Whistle’s blown. Game over.

“What does that mean,” the buyer fretted. I go into ultra-soothing Hillary mode. “Well,” I calmly explain, “it means the bank still could deny the loan if the conditions are not met.” Then I brace myself and continue – “It also means, if you sign the removal of contingencies, your $20 grand security deposit is at risk. The seller could grab the cash because he’s kept the property off market.”

A worried frown from the buyer. This is not going as planned. I immediately shift into full protection mode and assure her we can circumvent this risk. But both seller and seller's agent would need to know they still have deal. Now at this point, they’re clamoring for removal of contingencies. Bottom line: I’ve got to protect my client's investment until we have full loan approval. This means getting the seller to feel confident enough to give us the extra time we needed. How did I pull off this delicate juggling act?

Find Out in Part 2 of Hillary’s Cliffhanger Case Studies.

And while you’re waiting, I’ll be happy to answer any of your questions or provide information pertaining to the bustling Orange County Real Estate market. Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.