Lesson 4 · Home Closing Insurance · For sellers
What happens if my buyer is late closing?
The short answer
If your buyer is late closing, you keep paying the mortgage, property taxes and utilities on a home you thought was sold, and possibly a second mortgage too. Delays are more common than defaults. Home closing insurance covers a delayed closing as well as a default: your carrying costs are advanced through the wait.
Key facts
- More common
- Delays, not defaults
- What you keep paying
- Mortgage, property taxes, utilities, maybe two mortgages
- Coverage on a delay
- Carrying costs advanced through the wait
- Limit
- Up to 20% of the sale price, max $250,000, depending on the coverage selected
- When you pay
- Not until the deal is firm
Transcript
Read the full transcript
What happens if your buyer is late closing?
It can cost you more than a buyer who walks away.
Delays are the more common problem.
The buyer's financing slips, or their own sale stalls.
The deal isn't dead, but it isn't done.
And every day it drags, you're still paying the mortgage, the property taxes, and the utilities, on a home you thought was sold.
If you've already bought your next home, you could be carrying two mortgages.
Home Closing Insurance covers a delayed closing, as well as a default.
If the buyer delays, your carrying costs are advanced through the wait.
That's up to 20% of the sale price, to a maximum of $250,000, depending on the coverage you choose.
And you don't pay until the deal is firm.
Get a free quote in minutes, at securemyoffer.com/quote.
Summary only. Coverage, eligibility and conditions are governed by the policy and surety documents. Questions about coverage? Talk to a licensed broker at 1-833-766-2329.
