Project Details

A buyer’s loan for a condominium property was in jeopardy because of difficulties with their HOA (Home Owner’s Association) insurance. The renewal of their HOA master insurance, the required fire insurance that replaces the complex in case of fire, had been denied. Every lender requires a valid master insurance policy in place that doesn’t expire for at least three to six months from the time escrow closes on the purchase.

The existing policy had been extended from its original expiration date to two weeks after my buyer’s purchase was supposed to close. But the lender was requiring a policy that was good for at least three months after closing. The HOA had waited until the last possible day before settling on a new insurer and policy, which meant I had to extend the loan transaction beyond our original closing date by over two weeks.

We had locked the interest rate when the loan was originally in contract and I had locked it with a one-week cushion, just in case something unforeseen came up that would cause the transaction to not close on time. I typically do this as long as it doesn’t impact the cost to close for the borrower. But in this case, we needed two more weeks, requiring us to extend the lock beyond its original expiration date.