I have a listing that went under contract in May. Buyer was very motivated and things moved quickly. Closing was early June.
A day before closing, buyers agent informed me that we would have to push back closing.
Apparently buyer is self employed, had not been making quarterly tax payments, had not paid 2019 taxes yet, and despite the tax deadline being moved, lender / FHA was requiring them to either pay taxes in full prior to closing or set up a payment plan (why they only informed buyer of this a day before closing is ridiculous in its own right). The buyer apparently set it up that day and sent confirmation email from the IRS to the lender. The lender said their policy was that the only thing they would accept was a letter from the IRS confirming setup of payment plan and details of plan, and that IRS is behind due to COVID and it would take 2-4 weeks.
Fast forward to now, we are closing in on the deadline of the third extension of closing date we made with the buyers. Still no letter from IRS. Buyer even sent lender proof of bank account showing first payment to IRS was made. They hold that only a letter from the IRS will suffice.
Mortgage people - Is this a specific lender issue or FHA issue? There is no evidence that IRS is going to deliver this confirmation letter this week, and seller is getting fed up. I'm trying to find out who I need to put pressure on.
A day before closing, buyers agent informed me that we would have to push back closing.
Apparently buyer is self employed, had not been making quarterly tax payments, had not paid 2019 taxes yet, and despite the tax deadline being moved, lender / FHA was requiring them to either pay taxes in full prior to closing or set up a payment plan (why they only informed buyer of this a day before closing is ridiculous in its own right). The buyer apparently set it up that day and sent confirmation email from the IRS to the lender. The lender said their policy was that the only thing they would accept was a letter from the IRS confirming setup of payment plan and details of plan, and that IRS is behind due to COVID and it would take 2-4 weeks.
Fast forward to now, we are closing in on the deadline of the third extension of closing date we made with the buyers. Still no letter from IRS. Buyer even sent lender proof of bank account showing first payment to IRS was made. They hold that only a letter from the IRS will suffice.
Mortgage people - Is this a specific lender issue or FHA issue? There is no evidence that IRS is going to deliver this confirmation letter this week, and seller is getting fed up. I'm trying to find out who I need to put pressure on.