That has happened to us one time several years ago and the buyer convinced the furniture company to  cancel the purchase, then the buyer re-purchased the same items after the closing. Very tense situation!

Oh crap, is right. This one has never happened to me. But I did have a buyer change jobs three weeks before closing once.... thankfully my very pro-active lender got it resolved and done!

Noooooo! That is always a bummer. I tell my LOs to talk with the buyer upfront and all of them do. If the agents as well, that must be why it doesn't happen as often as it used to. 

Paul,

I think that Sandy Padula and Norm Padula, JD, GRI gave you an excellent suggestion.  We are crossing our toes and fingers and paws hoping this will be a possibility!  A

Thankfully this hasn't happened tie me either representing buyers or sellers. I let each side know about these kinds of examples. Real life is not always a bed of roses. Stuff happens. Thorns too.

I hate when that happens.

I also mention it to all my buyers; stay away from add'l credit purchases until after closing, no matter how good your credit is.

I think this happens all the time... sorry it happened to you Paul.

It has not happened to me in many years.

There's often a "workaround." Have another loan officer look at the deal for a second opinion...

They should have been properly advised.

NEVER.... 

I never relied on buyer agents to do anything with my new construction deals.... I have the buyers contact info and bank info...and I read the buyer the riot act about buying a pack of chewing gum prior to closing....

They were excited about the purchase, imagined the house full of furniture and then went out and did something about it. Their thinking was sound but the timing was off. As a remedy, someone loan them the amount to pay-off the furniture loan and proceed after that....

I always cautioned... no make that threatened buyers against buying ANYTHING on credit before closing. 

I've not had that happen, thankfully!  Knock on wood!

No it does not happen all that much but stuff does happen. Life is not perfect & so neither is credit.

Buyer should loose EM on this one but that won't happen. No recourse for the seller.

Not often but it does happen regardless of what a buyer is told - they forget. And they get excited about the "buy now" come ons that "won't be available" after closing and feel that they just have to have that couch - it matches the new place perfectly. That said often these situations can be remedied should all parties wish it to happen.

If not, may your listing pend again soon.

Grrrrr!!!! That is one thing that really pulls my chain. I just had this talk with our youngest son over and over again. 

Thanks for the story, I don't give the talk enough.

Unfortunately...but try to fix it. Maybe they still can refund whatever they bought?

Detroit, detroit Got a hell of a hockey team Got a left-handed way Of making a man sign up on that Automotive dream - Paul Simon

I wish I had a dime for e very time this happens, I would be rich.

This most likely was a no interest and no payments for a certain amount of time. The borrowers could have thought that the loan wouldn't show up on credit until the payments were to start. But, the inquiry into credit by the furniture store was probably what triggered the denial. The furniture store most likely still has the furniture, "to be delivered after closing". So, cancel the purchase and get something from the furniture store on letterhead to sho wit has been cancelled.     

People are people and sometimes they just dont listen... I liked Norms response very creative and sound! 

Have not had it happen yet, either they return the furniture, or become the subject of a story you will write about as a warning to the next buyers who ignore your direction.

Not a lot but yes it happens.   No Matter how much you school some, they think they are invincible.  

Mortgaging their future on toys !

Paul S. Henderson, REALTOR®, CRS I always tell buyers avoid using credit cards.

Sorry to hear Paul. How many times have we all been very clear with our buyers - do not buy ANYTHING on credit or credit cards. You can buy whatever you want after closing BUT NOT BEFORE!

I always have that talk with my buyers before writing an offer. 

It happened to me early on in my career. The wife when out and purchased a bunch of furniture without telling her husband, it all came out in the open at the closing table.  It was not a pleasant conversation between husband and wife in front of sellers, attorney, and lender.  

The closing was postponed and all the charges had to be credited back to the credit card. 

I have this talk with my buyers on day 1, also when we put the home under contract and alos sgare storied like this of failed buyers to get my point across

Only once

Yes, I had a delayed transaction once because the seller was addicted to TV home shopping. Happened not just once but twice with that particular person despite both lender and I talking to her about it. She finally stopped when the seller (REO) added per diem charges for any delays and the transaction went through. 

Hmm, and this buyer will be let off the hook because they were unable to secure financing, as a result of their action.

And the seller and everyone else involved takes the 'hit."

It is my hope the seller is able to cash the check for the 'non-refundable' part of the deposit.  The seller did get one of those...right?

No, most of buyers in our area a cash buyers.

Being in the Mortgage Business 50 years I have seen this happen several times. I always tell my borrowers "Do not change your financial picture until after you close." One young couple went out a purchase a new car at $560. a month. At application they have no car payments. Loan was declined. I hope they liked sleeping in their car

Yes, we have had a similar experience. Fortunately, the loan officer found another lender who would do the loan. Close call!

Yes, we always have the talk. DON"T BUY ANYTHING ON CREDIT UNTIL AFTER ESCROW CLOSES.

TELL THEM TO RETURN THE FURNITURE AND GET A CREDIT. Even if the store promised no interest no payments all of  it must go back, this solves the mistake.

I have a check list of what to do and not do:

1. leave all your money in the bank

2. Don't move money around

3. Don't buy furniture, a car, clothing or luxuries until I say you are clear

4. Don't loan money to anyone

5. Don't quit your job or make your boss mad

6. Do open your email every day and respond

7. Do call me as much as you want, when you want

8. Do ask for help

Oh, Crap is right. I advise my clients not to buy a pack of gum ... to keep their spending status quo until the loan funds and escrow closes and they have the keys to their new home.