I represent a seller on a property that went under contract on August 24. We were supposed to close last Friday. The buyers' agent asked us for an extention through today, Sepember 27 because she was told by the lender that they were a little behind.
My sellers are out of state, so in order to fund on time, docs need to be available at least a day ahead of time so they can be emailed out, the sellers get to a notary, and then FedEx'd back for a next day delivery to have originals for funding.
As the week went on and on, I kept calling and kept getting voicemails. I would email and get no responses. I finally called the loan officer instead of the processor and she actually answered the phone. She tells me some very interesting news that I wish we would have learned a few days ago.
The buyers are doing an FHA loan, which typically requires 3% from the buyer. However, they moved here because of Katrina and FHA has offered Katrina victims 100% financing. However, apparently no one new the expiration date, and they just realized that the Katrina 203H FHA loan expired on August 31!!!
Right now, the lender has emailed HUD and they're awaiting an exception to the expiration date since the contract actually executed before the expiration date. It's a waiting game, but hopefully they'll approve it.
Anyone else have experience with the Katrina loan?