Anyone who has ever flown in or out of Reno-Tahoe International Airport knows the feeling…

Not long after the initial thrust of the turbine engines lift you off the ground, or immediately following the stunning view of Lake Tahoe just before touching down, a subtle mismatching of exterior air conditions vibrates its way down the fuselage. Your vessel shudders and a sinking dread immediately fills your stomach. You look to your travel partners and wonder “is this is? are we going down?”

A sudden jolt of turbulence can jar even the most seasoned traveler. There’s no real way to plan for its occurrence. A seasoned and experienced pilot knows how to handle the unexpected conditions, but they’re not the only ones involved in the flight, now are they?

When navigating a real estate transaction, we always expect smooth skies, but we know the possibilities may defy our realities. Buying or selling a home is the largest transaction many people will make in their lives, and most will only tread that path but a handful of times in that same life. It can be an emotionally charged time for people, as it is not always by choice that they are parting ways the place they’ve previously called home. As such, the journey can be fraught with potential pitfalls.

These challenges present themselves as turbulence in the escrow process. A threat to the safety and well-being of everyone on board. Below is an extensive (but not exhaustive) list of those challenges and where they may come from in a typical transition of ownership.

The Buyer:

1.     Is deceitful on their loan application.

2.     Submits incorrect information to the lender.

3.     Has recent late payments on a credit report.

4.     Found out about additional debt after loan application.

5.     Loses their job.

6.     Changes their job.

7.     Has lower income than what was stated on loan application.

8.     Needs overtime income to qualify which is not always allowed by the underwriter.

9.     Makes a large purchase on credit before closing.

10.  Has an illness, injury, divorce or other financial setback during escrow.

11.  Lacks motivation.

12.  Fails to secure previously a previously committed gift

13.  Cannot locate a divorce decree.

14.  Cannot locate petition or discharge of bankruptcy.

15.  Cannot locate tax returns.

16.  Cannot locate bank statements.

17.  Has difficulty in obtaining verification of rent.

18.  No longer qualifies for their loan.

19.  Can no longer afford their loan program (higher rates, points, fees, etc.)

20.  Has child support payments not disclosed on application.

21.  Is a foreign national.

22.  Has a bankruptcy within the last 2 years.

23.  Mortgage payment is double the previous housing payment.

24.  Does not have steady 2-year employment history.

25.  Has handwritten pay stubs.

26.  Switches to a job requiring probation period just before closing.

27.  Switches to a job from salary to 100% commission income.

28.  Borrower/co-borrower/seller dies.

29.  Family members or friends do not like what the home buyer chooses.

30.  Is too picky about property in the price range they can afford.

31.  Feels the house is misrepresented.

32.  Veterans DD214 form is not available.

33.  Comes up short on cash needed for the down payment and closing costs.

34.  Does not properly account for and disclose new additional funds.

35.  Does not bring cashier’s check to title company for closing costs and down payment.

 The Seller:

36.  Loses motivation to sell.

37.  Cannot find a suitable replacement property.

38.  Will not allow appraisers inside home.

39.  Will not allow inspectors inside the home in a timely manner.

40.  Removes property from the premises the buyer believed was included.

41.  Is unable to clear up liens against their property.

42.  Did not own 100% of property as previously disclosed.

43.  Thought getting partners signatures were “no problem” but they were.

44.  Leaves town without giving anyone Power of Attorney.

45.  Delays the projected move-out date.

46.  Did not complete the repairs agreed to in contract.

47.  Seller’s home goes into foreclosure during escrow.

48.  Misrepresents information about the home and/or neighborhood to the buyer.

49.  Does not disclose all hidden or unknown defects and they are subsequently discovered.

50.  Builder miscalculates completion date of new home.

51.  Builder has too many cost overruns.

52.  Final inspection on new home does not pass.

53.  Does not appear for closing and won’t sign papers.

The Other Real Estate Agent:

54.  Has no influence or control over their client.

55.  Delays access to the property for inspection and appraisals.

56.  Is unfamiliar with their client’s financial position.

57.  Does not get completed paperwork to the lender in time.

58.  Is inexperienced in this type of property transaction.

59.  Takes unexpected time off during the transaction and can’t be reached.

60.  Puts their own needs ahead of their clients.

61.  Does not do sufficient homework on their clients or the property.

 The Property:

62.  The engineer will not approve the septic system or well.

63.  There is substantial and/or significant concealed damage.

64.  The size or condition of the home was misrepresented.

65.  The home is destroyed prior to closing.

66.  The home not structurally sound.

67.  The home is uninsurable for homeowners insurance.

68.  The property is incorrectly zoned.

69.  A portion of the home sits on neighbor’s property.

70.  The home is unique and comparable properties for appraisal are difficult to find.

71.  Major systems within the home are inoperable or in disrepair

 The Title/Escrow Company:

72.  Fails to notify stakeholders of unsigned or unreturned documents.

73.  Fails to obtain information from stakeholders in a timely manner.

74.  Allows principals to leave town without getting all necessary signatures.

75.  Loses or incorrectly prepares paperwork.

76.  Does not share valuable information promptly.

77.  Does not coordinate or execute efficiently.

78.  Does not creatively problem-solve on minor problems.

79.  Does not find liens or any title problems until the last minute.

 The Appraiser:

80.  Is not local and misunderstands the market.

81.  Is unable to complete the appraisal on schedule.

82.  Cannot identify comparable sales.

83.  Is not approved by the Lender

84.  Makes important mistakes on the appraisal and brings in value too low.

85.  A secondary or “review” appraisal is deemed neccessary.

 The Inspector:

86.  Inspection report rattles the buyer who then cancels the transaction.

87.  Inspection report offends and infuriates the seller.

88.  Home inspector not available when needed.

If you’re in need of a steady hand to guide your escrow, thankfully, you’re reading this in the right place. Contact me for guidance on how to navigate these issues, or anything else the stormy skies may bring your way.

Safe travels!