I just closed a transaction where we had to have
a 30
day close on because it is scheduled to go to auction on the Thursday
of the
week of close. On the 8th of
September, when we got approval from
the seller’s bank to do the short sale, we were assured by the buyer’s
bank
that they could easily close in the 30 days and to proceed.
Well, guess who calls on the day of the scheduled closing saying they are backed up in underwriting and they can’t close until the 18th? Yep, the buyer’s banker from a certain mega bank of some large country. (No names of course) So, I had to inform them we have already had one extension and their bank has said no way to another one and that their buyer is going to be out of luck come Thursday morning when this place is foreclosed on.
I also advised him that if it does go to foreclosure, based on his promises, that he would more likely be getting a call from the other agent and their buyer wondering who is paying for that inspection and appraisal that are now not worth anything because of his lie about when he could close. (He admitted to me that he thought we could get another extension because we were so close.)
I certainly wouldn’t want to be on the phone with that banker when the buyer calls asking for a refund of her appraisal, inspection and her money she put up front to get the loan! ATTENTION BUYERS! This is why it so important to use your agents preferred lenders, these are lenders that your agent has worked with before and they know when they promise something that it can be done!
The 1-800-GREAT-RATES are only great when the loan can close. If they can’t close you can lose thousands in earnest money deposits, appraisal costs and inspection reports. IS IT WORTH IT?
Todd Clark and the Friendly Home Team
Capstone Real Estate
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)622-8739
Todd Clark is a licensed Realtor who specializing in Washington County, Oregon and also works both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
All information contained in these posts is copyrighted and cannot be used without prior written approval authorization from the author. If you are looking for an outstanding agent please give Todd Clark a call he would love to help you in all your real estate needs.
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Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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Todd, THAT is a perfect reason to use people who you know CAN get the transaction closed in a timely manner! Great advice! You may as well call...1-800-WHO-CARES?!
Very good point. The Buyer's agent is in the best position to know which professionals will get the job done. It's important not to let concern about the costs of the loan, overshadow the importance of the main goal of closing escrow on the home they want. It can also be critical to have a local lender, someone accessible and someone with a vested interest in their reputation in the community.
Todd, I guess it comes to under promise and over deliver!
Awesome delivery of this timely message. I am suggesting it and am going to hit the re-blog. It really is important for our clients to trust us, we are in these trenches daily on know who to stay away from. Hope the rest of your week is better!
This is a great point to make! Any relationships I have with Lenders are strictly based on good service for my clients. I get nothing in return except confidence that the transaction will be completed in a timely fashion.
Todd: This is great perspective on how you need to work with lenders you know can deliver on their promises. What a mess! And the lender "thought" you could get another extension? Too bad they did not understand the gravity of being mistake in that guess.
This is the #1 reason I request that my buyers do not use some cut rate or on-line lender. I feel for everyone involved except for the lender who lied. He deserves everything he's soon to get.
Todd, what's really crazy is that up front they sometimes give the buyers a rosy picture of what they can do and we get a very different expectation from the short sale department of the same bank. They are creating some of their own problems!
Why do the banks keep such people, they must lie all the time to cover their rear ends...
I am moving towards using proven folks or institutions who do their own underwriting. It makes all the difference in the world.
Cal
Todd - I cringe when my buyer clients tells me they decided to go with XYZ lender because their rate and fees are lower, but as you mentioned if it doesn't close how good of a deal is it? My preferred lenders have always come through and never made a promise they couldn't keep. I also cringe when I hear my cousin does loans on the side.
How many times a month do we hear this story? Internet lenders are simply awful - bottom line. I try as hard as ethics will allow to influence the buyer to go with a local lender whenever I can.
Todd - I am proud to say that has never been me! I'm straight up with the amount of time it takes.
Mega bank LO's really don't care all that much. They are paid a salary and if they close enough production they can get bonuses. Not saying they don't care because they are mean spirited. They have a phone ringing all of the time and are expected to work on volume.
If I pulled that kind of crap I would be out of business quickly! I am licensed in Oregon so if you run into that situation again and don't have someone you normally rely on feel free to contact me and I can give you a pretty good idea of what kind of deal you have on your hands. I don't have to do the loan to help you, just let me know. I can read turn times on rate sheets and pass the info on to you. Sorry this happened to you. That really bites!
Paul - All of the loan officers that can't pass a federal test, credit or background check have to work at the mega banks because they can't meet the requirements to keep their license or can't market effectively.
Todd, looks like you closed it. Negotiators in loss mit, I noticed, like to give us a hard time. I think they start laughing when they hang up the phone from our calls.
The sad part is the rest of the story on this one, which I will post here in the next couple days, but let's just say this buyers agent may have really put his client in some serious financial danger all in the name of a sale.
