Prevent Issues that Cause Mortgage Closing Delays or Failures
Updated: Nov 9
If you’re a seasoned realtor or broker, you know that getting the contract signed is like winning the battle, not the war. The war isn’t won until all the mortgage closing documents are signed by all parties. And between the time the original contract is signed and the settlement, there are a lot of things that can go wrong. Some of these can kill the deal entirely while others can cause costly delays.
According to the January 2022 REALTORS® Confidence Index Survey conducted by the National Association of Realtors, approximately 7% of pending real estate transactions fell through, and an additional 23% experienced delays.
Title Issues Are One Reason Deals Failed or were Delayed
Historically, approximately 13% of all delayed sales and 5% of terminated sales experienced title issues. Among contracts signed during the past three-month period as of January 2022, 70% of contracts closed on time, 23% had a delayed settlement, and 7% were terminated as of January. Among contracts where the settlement was delayed, 20% were due to appraisal issues and 24% were due to financing issues. Among contracts that were terminated, 25% were due to inspection issues and 21% were due to financing issues.
What Are the Costs of Mortgage Closing Failures and Delays?
For everyone involved, closing delays and failures can result in financial hardship, among other problems. As a lender, Realtor, or broker, you rely on the money from your closings to make ends meet, and when they fall through or don’t happen when you expect, you can be left with unpaid bills, late fees, and accumulating debt.
For home buyers and sellers, the effects may be even more devastating, as a failed closing can potentially leave one or the other with no place to live, not to mention with shattered dreams and expectations. In addition, delays can mean the loss of lower interest rates, incurred costs for interim housing and storage costs, in addition to other expenses. And unfortunately, lenders, Realtors or brokers often get the blame from their clients when things go wrong, even if the problem was due to a title issue or another problem that the title company let fall through the cracks.
TitleEase, a Solution that Provides You Greater Control over Closings and Process Transparency
If you’re a lender, Realtor, or broker who’s tired of working hard to get deals, only to have them fall through or experience delays because of someone else’s neglect, you are the perfect candidate for our TitleEase Franchise System.
TitleEase Franchise is looking for seasoned real estate brokers and agents interested in having more control over their closings and their clients’ closing experiences by owning and operating their own title company. Our staff mentors you, and our reliable and efficient processes will greatly reduce closing delays. While no one can guarantee that you will not find an unclosed municipal permit requiring an inspection or similar issues, we can remove risks involving the timely delivery of title insurance.
You’ll also earn more money from each real estate transaction. Let us assist you in estimating monthly gross income and EBITDA figures your title company may produce. To learn more about this opportunity, contact us or call 1-877-696-5462 to speak with a representative today!