Who should sign COE extension request first?

I encountered an issue in escrow with a Fannie Mae listing.  Fannie Mae's attorney needed to extend COE on the basis that they were unable to sign off on HUD in a 48 hour time period.  My buyer had already signed docs and the lender was ready to fund.  The listing agent wrote up the extension amendment on a Fannie amendment form and asked me to have my buyer sign the extension requested by seller without having the seller actually sign their own request first.  I let them know that the seller/Fannie Mae needs to sign their COE extension amendment first and the listing agent responded by saying the seller will NOT sign first due to Fannie Mae protocol?  She claimed that if my buyer did not sign  the extension then due to the fact we would be out of escrow -the "computer system" would automatically kick the deal out and the entire process would have to start over at that point.  She then stated that nobody involved wished for that.

Is it better just to have buyer sign the sellers extension request or risk the losing the transaction in its entirety due to a technical issue of who needs to sign what first and when?

I'll let you be the judge and decide if the transaction closed and on what terms..

Talking Point

• Traditionally, the period between Thanksgiving and New Year’s is the slowest time of the year for home shopping.  However, homeowners who must sell in the winter can use staging, the reduced competition and some seasonal opportunities to their advantage.
   
• Remembering the basics is key.  Taking care of needed maintenance and repairs is obligatory in any season.  A thorough cleaning and decluttering are equally essential.  Tidying up the yard and touching up the exterior appearance to improve curb appeal also can make the difference between deal or no deal.
   
• Home staging takes on a new focus in winter.  Rearranging the furniture and applying a fresh coat of paint to any room are just as important.  But to convey a cozy impression in the winter, it may befit homeowners to turn up the thermostat and have a fire in the fireplace for open houses. 

Food for thought

Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011.  The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent.  The effective composite interest rate in second-quarter 2011 was 4.85 percent and 4.78 percent in the third quarter of 2010.

Survey reflects tight credit conditions
Recent home buyers are staying well within their means with notably higher incomes and modestly higher down payments than buyers in the previous year due to the restrictive mortgage credit environment, despite historically favorable housing affordability conditions, according to 2011 NATIONAL ASSOCIATION OF REALTORS®’ Profile of Home Buyers and Sellers.

The share of first-time buyers declined to 37 percent in 2011 compared with 50 percent in the 2010 study.  The study shows the median age of first-time buyers was 31, and the median income was $62,400, up from $59,900 in the 2010 study. The typical first-time buyer purchased a 1,570 square foot home costing $155,000; the estimated median monthly mortgage principal and interest payment was $794.

Keep Your Home California

Mortgage aid open to more Calif. borrowers
The state-run program, “Keep Your Home California,” which helps homeowners struggling to pay their mortgages now has broader eligibility guidelines.  Borrowers who did “cash-out” refinances and own multiple properties now are eligible for the program, according to California Housnig Finance Agency officials.

Making sense of the story

• To date, Keep Your Home California has helped approximately 8,000 low- and moderate-income households that are behind on loan payments or close to default.
  
• There are four parts to the program: Mortgage help for the unemployed, mortgage aid for homeowners with documented financial hardship, relocation help for those in the midst of a short sale or deed-in-lieu of foreclosure, and reduction of principal.
  
• Homeowners who completed “cash-out” mortgage refinancing now are allowed to take part in the four programs outlined above, and borrowers who own more than one property also can apply for the program.  Previously, these two groups of borrowers were excluded from participation.
  
• Mortgage aid to unemployed borrowers also has been extended to nine months, instead of six.  Such homeowners can receive up to $3,000 a month.  To qualify, borrowers must be receiving unemployment benefits.
  
• Additionally, the program has reinstated up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.
  
• To review qualification guidelines, visit www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org.

Before starting the house hunt, there are a few things buyers need to consider

• Credit score: Lenders are generally looking for buyers to have credit scores of at least 620 nowadays.  Although the Federal Housing Administration will extend loans to borrowers with credit scores as low as 580, most banks are imposing higher scores.
  
• Reserves: Even when renting, financial advisers recommend saving four to five months’ worth of expenses in case of job loss or any other unforeseen event.  Homeowners should add an additional two months’ worth to their savings.
  
• Settling down: Buyers should think about if they see themselves living in the same place for five to seven years.  Homeownership is not just a financial decision, it’s also a lifestyle choice.