Tuesday, May 26, 2009

Coming apart at the seams

I've been working with some clients for the last six weeks now. They are a lovely older couple that is buying a house for her daughter and grandchildren to live in. We put offers in on several properties prior to getting the one that we currently have in escrow. We are supposed to close escrow on June 9th. That's fourteen days from now. And here's where it gets interesting. They have a large sum of money to use as the down payment on this house. I have no doubt that the money is there. I am quite sure it was gotten from honest means. BUT. They can't prove it. Oh, they can prove the money is in the bank. But they can't prove how it got there. It isn't "seasoned" as the bankers say. Which is to say that it simply appeared there one day. And that day was less than 60 days ago. Now, my client says that the money came from selling her home in Mexico. Which is perfectly legal. Although not usually done in a parking lot. With cash. And no witnesses other than her daughter.

So now we are at a crossroads. We can continue to try and find someone that can send proof of the transaction to the bank. We can continue the transaction only using the "seasoned" money and getting a larger loan. Or we can watch in horror as the whole deal blows apart thereby losing my clients their earnest money and all the other money they've spent on other necessary items pertinent to purchasing a house such as inspections and the appraisal. And oh yeah, the 150 hours and those 700+ miles I've put on my car driving them around and going back and forth to their house? Wasted. I've put a lot of time and effort in this and I am hoping against all the odds that it doesn't go down the tubes this late in the process. Because that would be a really sucky way to start my career. Although, I guess I'll have the fodder to write a "what not to do" list for my future clients.


K-Mom said...

We kind of had something like that happen with us when we bought our first house. The downpayment was a gift from Hubby's parents that "magically" appeared in our account.

We were able to work it out, I hope you guys can too. By the way, we've bought and sold two houses now and I still have no idea what escrow is.

Good luck!