When an Escrow Goes Sideways: The Real Estate Transaction That Almost Didn't Close

Most people think selling a home looks something like this:

Put the house on the market.

Get an offer.

Open escrow.

Sign some paperwork.

Get a check.

Done.

😂

If only it were that easy.

 

I recently had a transaction that reminded me just how many moving parts can exist behind the scenes of a real estate closing—and why having the right professionals around you matters.

 

My clients are seniors who were selling their home in Wildomar and moving into their new home at The Colony.

Because they were purchasing their next home before their current home had sold, we used a bridge loan to make the transition possible.

And once that bridge loan was in place, the clock started ticking.

 

First, We Had to Chase the Market

Like many sellers, my clients had a price in mind.

The market had other ideas.

We adjusted.

We watched.

We chased the market until we finally reached the price where buyers were willing to act.

And then—finally—we got it sold over the weekend.

You would think that was the hard part.

It wasn't.

 

Then the Buyer's Financing Became a Problem

Our buyer needed to sell his own property in order to close on our Wildomar home.

Before accepting the offer, we communicated with the buyer's lender and were told that the buyer was preapproved and ready to go.

Then escrow opened.

And we discovered that the preapproval wasn't actually where we had been led to believe it was.

Now we're talking about a transaction where multiple people are depending on one closing to make another closing happen.

My clients were already dealing with the stress of moving and an enormous amount of paperwork.

Now I had to explain one more problem.

 

Then another.

 

And another.

 

The Credit Puzzle

Our buyer had to consolidate debt, pay off obligations, and have his credit re-scored.

That takes time.

And time was exactly what we didn't have.

 

Meanwhile, we were being told that the buyer's buyer was delayed because of circumstances involving active military service and working outside the area.

There were explanations.

There were assurances.

But the transaction wasn't moving the way it should.

 

Then Came the Contingency Releases

Our buyer eventually appeared ready to move forward, and his agent released contingencies.

Normally, when a buyer's loan contingency is released, you'd expect that the buyer has also made significant progress on the sale of the property they need to sell.

But something didn't feel right.

And this is where I became very persistent.

 

I wanted documentation.

Not assurances.

Not "everything is fine."

I insisted on seeing the actual communication between the agents, buyer, and lender.

Because when you're dealing with someone else's deposit, your clients' next home, and a chain of transactions, you can't operate on assumptions.

Finally… A DU Approval

Eventually, the buyer's buyer received a DU approval.

But there were conditions.

 

Even our buyer's lender was skeptical.

At that point, nobody was celebrating.

 

We had seen too many things go wrong.

And then something amazing happened.

The deal closed.

 

Not only did it close, but the two related transactions closed on consecutive days.

 

After everything we had been through, there was finally a moment where everyone could breathe.

 

Every Transaction in Real Estate is Different

This wasn't a transaction where anyone could simply point to one mistake and say, "That's what caused the problem."

It was a complicated chain of financing, property sales, bridge financing, credit issues, contingency deadlines, communication problems, and timing.

And that's the part of real estate consumers don't usually see.

Your Realtor isn't just opening doors and putting a sign in the yard.

A good Realtor is watching the transaction.

Asking questions.

Following up.

Verifying information.

Connecting the dots.

And sometimes digging much deeper when something doesn't make sense.

 

My clients trusted me to keep pushing through the mud until we got to the other side.

 

And we did.

 

Choose Your Lender Carefully

If I could give buyers one piece of advice from this experience, it would be this:

Listen when your Realtor recommends a lender they trust.

I'm not saying you shouldn't shop around.

You absolutely should understand your financing options.

But don't choose a lender simply because some "Joe Blow" on the internet promised you a rate or deal that sounds too good to be true.

Your lender is a critical part of your real estate team.

You want someone who communicates.

Someone who understands the transaction.

Someone who tells the truth when there is a problem.

And most importantly, someone who can help get you from preapproval to closing.

Because the cheapest quote isn't necessarily the best deal if the financing falls apart halfway through escrow.

 

Real estate transactions can get messy.

Even when your Realtor does the due diligence.

Even when everyone is trying to do the right thing.

Even when you think everything is finally on track.

That's why who you trust matters.

Watch the video here >>> The escrow that kept trying to fall apart!

If you're thinking about buying or selling a home in SoCal, I'd be happy to talk through the process with you—and help you build the right team before you ever open escrow.

Patti Gregory, Realtor
Haven Realty Group
714.398.1998
REAL Brokerage
DRE 01182154

Search homes privately without your data being sold or find out what your home is worth at https://pattigregoryrealtor.com/.