House Sale Closes on Wednesday, Laid off Yesterday?

Question

On Friday I sent over a letter from my employer confirming my employment. I was told that was the final thing I needed to do, and after 30+ days, escrow on my new home would close on Wednesday, August 27th. Unfortunately I was laid off yesterday. I received a generous severance pay and I already have two interviews scheduled for this Friday. I'm not worried about my future financially, but I'm worried that my being laid off will stop the purchase of my home. My father said when he bought a home 14 years ago, they called his work the final day of escrow to see if he was still employed. Do escrow companies still do this? Should I be honest with them? Should I not say a word? I'm really conflicted over this. I'm so close to the end of escrow. I can't believe this happened. Any advice will be appreciated.

Answer 1

They could call the employer, look at your bank records, look at your credit reports anything they choose up until the hour of closing.  So do you want to take the chance or tell them the truth?

IF and only if your severance pay will cover 6 FULL months of expenses including the house should you even try to close this loan.

Answer 2

Yes, they will phone your employer for a last minute verification.  Happens all the time.  Yes, it WILL put a dead halt to your closing.  Without a job, your approval will be pulled.  You may as well be upfront about it, rather than show up at closing, only to find a last minute and embarrassing denial.

Answer 3

They probably won't re-check your employment since they just did, but nonetheless you really need to tell them about this.  They will almost certainly cancel the loan and this will kill the purchase, but if you can get a new job quickly you can just buy a place then - heck maybe the one you are in the process of buying will still be available  (and if you do have trouble finding a new job you are not in danger of being foreclosed on).

Not sure of the legality of this but its probably fraud if you don't tell them.

Answer 4

yes this is a major problem. call the bank now and get a new job asap

Answer 5

You are right about the call being made to your employer, however it is the  lender or mortgage broker that does the calling to confirm that you are still currently employed.

As far as what you should do this is an ethical problem that you have to solve on your own.

It matters not what I or anyone else would do. I have my morals and values as everyone else and you have yours.

By you asking this question you already know the answer you are simply trying to confirm your own belief as to what to do.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 6

If you are not worried, it is not necessary to tell them. If you have a week or more of accrued sick and vacation time, you are still officially employed at time of closing.