Hi folks. I don't normally post two days in a row but I need to get this one out of my head. I don't like ranting so let's see if I can turn this ridiculous situation into a learning experience. OK here goes.
About ten days ago, I placed one of my listings pending. It wasn't an easy deal to negotiate and in fact took about 10 days to finally come to an agreement and get the contract signed and accepted. The reason it took so long is we were waiting on a pre-approval letter from the Mortgage Broker. There was an issue with how much the Lender would allow the Seller to contribute towards closing costs and I wanted to make sure we had exact figures, and confirmation that it could be done, prior to my Seller accepting and taking the house off the market.
Anyway, I had several conversations with the Mortgage Broker and the REALTOR® trying to get all of this sorted out to our satisfaction. Well, I finally did, the property went pending and we started moving forward. The appraisal was done last week and the file was submitted to underwriting on Friday for final approval.
Click on the picture for a great video!!
Now folks, I'm pretty diligent when it comes to doing my research on the Buyer prior to my Sellers accepting a deal. That's why they are paying me. We work as a team and we want to make sure when we go pending that there is a closing in the near future. I take this pretty serious and really pick the brains of the other side of the transaction. Unfortunately, being on the listing side, I have to get my information second hand. I have to rely on folks being honest with me. And frankly, I don't like being in that position.
Anyway, today, when I went down to my office, the first fax waiting for me was a denial letter. Not only was the loan denied but the reason for denial…..OK are you ready for this…..let's have a drum roll please……the Buyer has had…..not one, not two but three foreclosures in the last ten years!!!!! Yep that's right, this Buyer has been foreclosed on three times in ten years!!
Now, Jiminy cricket( I always wanted to use that phrase in a post) how in the world did this slip by the Mortgage Broker? Or did it? Well, I picked up the phone to find out. Supposedly, these three recent foreclosures DID NOT show up on the Buyer's credit report and he did not feel inclined to mention them on the loan application. Do you believe that? I don't think I do. According to the Mortgage Broker and the REALTOR® the foreclosures did not show up until the Undertaker, Oops!!! I meant Underwriter, did a public records search. That's their story and they're sticking to it.
Oh man, I am just befuddled. So I did what any good little Broker would do and I called the REALTOR®'s Broker to give him a heads up that my Seller will be claiming the escrow deposit. I told him he needs to make sure the Buyer understands that if he DID NOT disclose these foreclosures on the loan application he has committed a Federal offense and if he disputes the deposit release, my Seller will seek legal advice. So, we'll have to wait and see how this plays out.
OK, I feel better now. I have to say I am so tired of hearing this same old story again and again and again. I have personally had nine transactions kick in the last 60 days!!!! I know it's tuff out there and Buyer's are hard to come by but please, please, please, quit wasting mine and my Seller's time with this foolishness.
Now, let's see what I can come up with for a learning experience…hmmm…. OK, I've got one……Bite me you *&%#$ and %^&*!# Mortgage Brokers!!! Oops, sorry, that just slipped out.
Oh what the heck, that's MY story and I'm sticking to it!
All content copyright © 2007 – Broker Bryant Real Estate Ramblings
***OK so I edited my language, at the last minute, before posting. I realise that things happen and I try very hard to give folks the benefit of the doubt BUT it sure is getting difficult.
*****THERE IS ANOTHER POST RELATED TO THIS TOPIC HERE, WRITTEN BY BOB MITCHELL.