07/11: Once again the Mortgage industry sticks me again
Category: Real Estate Rant
Posted by: jpblogger
This scenario is really ugly. Buyer calls on a duty call and I am the one on duty. We make a immediate connection and I am told by the buyer that they want to move back home because they plan to retire in a year or two. It sounds like a good idea to me and I ask the buyer about their plans.
They explain to me the want to find a foreclosure with some square footage at a good price. Once again sounded like a good idea to me to seek the best deal possible. We continue to get to know each other over the phone since the buyer was out of state in Colorado. I begin searching for home and also inquire about their financing resource. I was introduced to their mortgage person that was also with a company in Colorado.
As I communicated with them I was given confidence of the ability of the buyer to purchase a home. The level of confidence was high and in my opinion the buyer was very capable in regards to a home purchase. Having 20% down , income job history and very high scores.
As my search continued we found several homes for that were good prospects. Finally settling on a 2900 sq ft foreclosure that was 4 beds 3 baths that needed minor repairs with several amenities. We went forward putting forth an off that was excepted! We continued to work with the mortgage person in regards to financing. Keep in mind this person gave absolutely no indication of any problems with financing.
We got a clear to close and I had the wonderful opportunity to meet my client because they flew all the way into mobile from Colorado to close in the middle of the week. We were ready to go and excited all the way up to closing with no indication from the lender there would be any problems. The morning of the closing I checked with the title company in regard to the status of the package and the closing. To my surprise no package from the lender! About a hour later I get a email from the lender stating there would be a delay! About 2 hours after that I get word from the lender the closing had been canceled!!! I asked what the heck is wrong and was informed the financing was denied because of the buyers intent of possible retirement. I told the lender to go back to underwriting and get it reversed. He went back with confidence and was turned down again. Despite the buyers income at retirement and current income. The buyer had plenty of income before and after retirement.
At that point a $124000 deal was dead! Stopped cold. The buyer was devastated and had to fly back to Colorado devastated. It knocked the starch out of me too! My compassion when out to my buyer who was not upset with me. My anger with the lender was contained since he was in Colorado and I could not get my hands on him. No one could believe a leader gave a buyer their word and confidence to the point of them traveling hundreds of mile to close with fund in their had to bring to the table to close and then have the load denied the day of the closing. Unbelievable!! The names of identities of this true story have been keep anonymous to protect the innocent. I really want to blast that no good lender out all over the internet to warn other but I would probably get sued! So they cannot be mentioned. The morale of the story. Even if you are in great shape and should get a loan... and the leader says you can... beware. Don't believe it until you have actually closed and have the keys in your hand. Underwriter suck....and don't care about anything but level of risk no matter how small the risk!
They explain to me the want to find a foreclosure with some square footage at a good price. Once again sounded like a good idea to me to seek the best deal possible. We continue to get to know each other over the phone since the buyer was out of state in Colorado. I begin searching for home and also inquire about their financing resource. I was introduced to their mortgage person that was also with a company in Colorado.
As I communicated with them I was given confidence of the ability of the buyer to purchase a home. The level of confidence was high and in my opinion the buyer was very capable in regards to a home purchase. Having 20% down , income job history and very high scores.
As my search continued we found several homes for that were good prospects. Finally settling on a 2900 sq ft foreclosure that was 4 beds 3 baths that needed minor repairs with several amenities. We went forward putting forth an off that was excepted! We continued to work with the mortgage person in regards to financing. Keep in mind this person gave absolutely no indication of any problems with financing.
We got a clear to close and I had the wonderful opportunity to meet my client because they flew all the way into mobile from Colorado to close in the middle of the week. We were ready to go and excited all the way up to closing with no indication from the lender there would be any problems. The morning of the closing I checked with the title company in regard to the status of the package and the closing. To my surprise no package from the lender! About a hour later I get a email from the lender stating there would be a delay! About 2 hours after that I get word from the lender the closing had been canceled!!! I asked what the heck is wrong and was informed the financing was denied because of the buyers intent of possible retirement. I told the lender to go back to underwriting and get it reversed. He went back with confidence and was turned down again. Despite the buyers income at retirement and current income. The buyer had plenty of income before and after retirement.
At that point a $124000 deal was dead! Stopped cold. The buyer was devastated and had to fly back to Colorado devastated. It knocked the starch out of me too! My compassion when out to my buyer who was not upset with me. My anger with the lender was contained since he was in Colorado and I could not get my hands on him. No one could believe a leader gave a buyer their word and confidence to the point of them traveling hundreds of mile to close with fund in their had to bring to the table to close and then have the load denied the day of the closing. Unbelievable!! The names of identities of this true story have been keep anonymous to protect the innocent. I really want to blast that no good lender out all over the internet to warn other but I would probably get sued! So they cannot be mentioned. The morale of the story. Even if you are in great shape and should get a loan... and the leader says you can... beware. Don't believe it until you have actually closed and have the keys in your hand. Underwriter suck....and don't care about anything but level of risk no matter how small the risk!