The 6 Most Common Causes of Delays in Escrow

The 6 Most Common Causes of Delays in Escrow

common-causes-of-delay-in-escrowWhen you are selling or buying a home, the closing day is considered to be the finish line. All the processes are done in preparation for the closing day. However, there are certain things that can lead to a delay in closing the escrow.

Following are the 6 most common causes of delays in escrow:

1. Unrealistic Timeline
It happens more often than one might think. A buyer may state that they can close escrow quickly in order to make their offer more attractive. However, the date the buyer sets needs to be realistic. On average, the closing process can take about 30-45 days. If you try to close any earlier, then a delay in escrow can be expected, particularly if there are any emergencies.

2. Inspection Issues
If the home inspection reveals any issues that need to be addressed, then you can expect a delay in escrow closing. The final closing will need to be postponed if the buyer wants the issues fixed before closing or he wants to renegotiate the price. If you want to avoid delays caused by such a scenario, then it is recommended that you schedule your inspection as quickly as possible.

3. Appraisal Issues
Problems with the appraisal are another major cause behind the real estate closing delay. Your closing date might be postponed if the property appraised for less than the offer of the buyer. The seller and buyer may need to agree to new terms or the buyer may need to secure new financing. Either way, the delay can be expected.

4. Lender Issues
The lender can also cause delays. In some cases, lenders may need additional financial documents as the closing day approaches. The review of these documents can take a while so it may push the escrow closing back a few days. Apart from this, the closing can also be delayed if it is scheduled for the end of the month. This is because there are relatively more transactions at the end of the month.

5. Title Issues
When you sell or buy a home, a title company will review the purchase. The company will assess the property in order to determine whether the seller has no unpaid liens and that he can legally sell the property. If any liens turn up via the search, the seller must fight the liens or pay them. This could delay the escrow closing by weeks or even months. If you are the seller and have unpaid liens, then you can hire an attorney to help mitigate this problem.

6. Personal Issues
Finally, personal issues can also cause delay in escrow closing. Perhaps the seller or buyer has had a medical or family emergency. There could also be a problem with the moving company. It is also possible that other parties involved in the process (e.g. your attorney or agent) have some emergency that they need to immediately deal with. In such situations, it is recommended that you try to go with the flow. This is because these situations are beyond your control.

Inland Empire Escrow  provides escrow services for a diverse variety of real estate transactions.  With offices in Chino CA and San Bernardino CA, we quickly and professionally service all the surrounding cities such as Chino Hills, Ontario, Rancho Cucamonga, Upland, Riverside, Redlands, Colton, Grand Terrace, Yucaipa, and more.  To hear more about our escrow services for residential, mobile home, short sale, REO, bulk/business sale, 1031 Exchange, or agricultural escrow, contact us today at (800) 917-9387.