Appraisal Problems. The home underappraises because comparable sales appear to be at lower prices, or because the appraiser is unfamiliar with the area or overly conservative. The home cannot be appraised because of a lack of any comparable sales in the area. The home doesn’t meet the appraisal guidelines due to zoning issues, lot size issues, or other issues.
Buyer Problems. The buyer’s gift money from relatives falls through; the buyer fails to turn in the necessary documentation to settle; the buyer finds another home he or she feels is a better deal; the buyer lies to the mortgage company about income or debts; the buyer tries to renegotiate the deal after it’s signed; the buyer hires an attorney who tries to change the deal; or, a job transfer, illness, or divorce changes the buyer’s circumstances.
Title Problems. Title defects—such as an improperly signed deed or incorrect engineering description—cause the sale to be postponed or halted. The title company misses important information or important figures that change the sale.
Seller Problems. The home the seller is moving into isn’t ready at the time of settlement on the seller’s current residence. The seller doesn’t realize he or she has a prepayment penalty on the mortgage until settlement or within days of settlement, making the seller bring money to closing rather than receive money at closing.