Financing frustrations after the storm

So April was a HUGE month for DC Real Estate. Home sale numbers went up as buyers scrambled to get the tax credit. Well priced homes sold quickly and for great prices. While sellers were thrilled in April, they are less thrilled in May as many of the buyers' loans are not getting approved by the financing deadlines due to mortgage lenders and underwriters scrambling to service the influx of loans. Lenders are working on loans according to settlement date, hoping to have everyone approved and funded by their contractual settlement date, NOT the financing contingency date. At Prosperity Mortgage, the Long and Foster subsidiary of Wells Fargo, they have implemented forced overtime and working weekends for the underwriters. Unfortunately in cyclical businesses, there are times when the lenders and appraisers are simply going to have a larger backlog of work, and you can't hire more people just for one busy month. What I would tell sellers is this: be patient, you benefited from the robust Spring market because your home went under contract, and now it is time to ride out one of the frustrations of a busy market.