Forgotten Your Password?

Need to Register?

Question Icon

Home Lost Value During Closing

Hello - I have been involved in an extremely long closing process (90 days) due to one of borrowers passing away during this process. My home lost a substantial amount of value with the volcanic eruptions in May ($90k) and I am worried that this will effect the closing. Any information is helpful. My lender is out on vacation and I would like to understand my options as a seller. by bender365_billieW747 from Maunaloa, Hawaii. Jul 9th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

More info needed, If one of the buyers is deceased, than obviously, that can complicate things, but also, its possible your borrowers lender has a problem with the area and not necessarily the existing buyer/borrower. If there are "Act of God" issues in your area, then lenders will typically suspend all financing until the dust settles.. then the home will have to be re-assessed.. This is because, lets say your home was already appraised, but the lava swept right through your property destroying your home.. Once the lender funds the loan, they cannot reverse it, so they will always do their due diligence to be sure the collateral is still in good condition. If your home was in the area where homes have been destroyed, then it's quite possible this is the reason for the borrowers delay.. have your listing agent call the borrowers lender and get a status and timeline.. this way you know exactly what to expect and if the delay is being caused by the lava flows.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Jul 9th 2018
Lance Owens (Lance Owens)
#3 ranked lender in Hawaii - 17 contributions

Like others here - MORE info needed. But as a general answer, homes on the Kona side have not lost $90k in value - but I am not sure where your home is located. On the "Crazy" scale, banks are sending agents to homes on the Kona side to check for LAVA damage, they have no clue that the lava is in a 10-20 square mile area and the bog island is 4,000 sqmiles big, and 2 hours away? So tell us the area you are located in.

Jul 9th 2018
Subscribe to our news feed.