Credit Crunch Dooms 'Done Deal'

A $2.45 million home sale falls through in the San Francisco Bay Area, and not because of bad credit or a dispute over needed repairs. The buyers, who now own a $5 million home, were using a 10 percent down payment, and the lender backed down in the final stages, the San Francisco Chronicle reports.

The credit crunch is stomping down some deals that used to be done deals.

"Everything was perking along smoothly," Realtor Bill Hogan of Coldwell Banker in Greenbrae, Calif., told the Chronicle. "The loan was approved and locked in. People were ordering moving trucks, everyone was feeling euphoric. All of a sudden the lender, because it is backed by a series of investors that are feeling very shaky and panicky, decided it could no longer honor the loan commitment. This was not a subprime loan."

What is happening out there? Got any horror stories to share about once-solid real estate deals that are falling through these days? Click below to comment or send us an e-mail.

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