When you see that a sale is pending, that means that the seller has accepted an offer but the deal is not completely closed yet. The property that is listed as pending means the listing is not an active listing but there is still legal work waiting to be processed and the loan is waiting to be closed. There is potential for a home that is listed as a pending status to become an active listing again if the deal falls through. We will discuss some reasons for the pending listing to not go through in this post.
A pending sale will not go through for a few financial reasons. To begin with, if the buyer makes an incredibly large credit card transaction or even opens up a new credit card, you may be disqualified for your loan. Have an open conversation with your loan officer in regards to your finances – especially if it is completely necessary for you to make a large purchase before the sale is finalized and goes through.
If there is an open lien or bill on the property being sold, it is possible that it will affect the finalization of the sale. Until open liens are taken care of, the lender will not allow the sale to go through. Also, if there are any clerical issues, including title work issues, the sale may not go through.
Another reason a pending listing may fail is if a home inspection fails and the seller does not tend to the issues that were found during the inspection.
It is not common for these issues to occur but it is possible. If you have any questions in regards to the process, please do not hesitate to reach out.