Loan Officer Leaves company the day before closing!

[Account Closed]

We had a closing date of Dec 1st 2022. The buyer was "pre-approved" by this lender. They asked for a 3 week extension which was the first red flag. I amended the contract for a Dec 23rd closing. On the evening of the 22nd my buyer gets a call from the loan officer and is told he has left the company but don't worry, it will be ok. On the 23rd I contact corporate headquarters of this lender and they tell me "Loan Officer" no longer works for the company and the loan was denied by this lender. They couldn't give me details since I'm just the seller. That's the last we ever heard from the loan officer that strung us all along for the last several months. The appraisal came in exactly where we needed it to be. The buyer had their downpayment ready, was supposedly pre-approved, I let them move in at Thanksgiving, and at the last minute we get screwed over. Luckily I used cash to remodel this house and get it ready to sell so I'm not under pressure for hard money loans or anything. My personal mortgage company is now involved and they say they can use the same appraisal so life is good.

Lot of lessons learned on this one......... the hard way!  

Thanks for letting me vent! 

[Chris Seveney]

@Kristi K.

This is a reason to NEVER let a buyer occupy the home prior to them owning it. It sounds like it’s turning out ok but this is a huge no no