What the heck is a Covid-19 Overlay Guideline ??

[Jerry Bankhead]

I am missing something here. I am new to real estate investing, and do not completely understand all the ways a rental property can be financed. I am selling a duplex in Waco, Tx. The buyer and I signed a contract back in May for the sell with an expected closing date of June 18. Apparently the buyer's were not able to get an appraisal done in time, so the close date was pushed to June 28. Again I got the same excuse, unable to find Appraiser, so closing pushed to July 9 (tomorrow). Well yesterday I get a call that the closing is not going to happen on the 9th due to "Covid-19 overlay guidelines". 

What the heck is Covid-19 Overlay guidelines?  I got an email this morning forwarded from the buyer's financial bank that states that "the buyer is going to be using a brokered loan, as a reaction to un-favorable Covid-19 Overlay Guidelines".   Is this a thing ??????  

They are offering more option money, but cant get that until close. I did not renew leases at the buyer's request and the place has been under contract for about 2 months, and will be for another month. So I am loosing rental income, potential offers, and still have to hold until closing on the 6th. 

Man what a learning curve this is going to be ...

Bo

[Ronald Allen Barney]

Guidelines, as the name implies, are suggestions from large authoritative institutions like Fannie Mae, for industries like lenders, appraisers, et al., to follow.  Individual companies as company policy can pick and choose which guidelines to follow.  Apparently the lender used by your "buyer" has followed restrictive guidelines for appraisers, which has delayed your closing.  Your recourse will depend on the wording of your purchase agreement.  Get a lawyer to review the contract to see what your options are.