I admit to writing this out of personal frustration and I suspect there are many Realtors who will join me. You see lately I’ve had nothing but problems with large lenders meeting contract deadlines for real estate buyers in the Plymouth and Cape Cod market. Read Top 5 banks in the U.S. and you will have it.

What surprises me even more is they don’t even seem to be aware (dare I say “care”) their client has significant deposits in escrow. A seller can keep a deposit of a buyer if contract dates are not met and seller is not notified in writing prior to the deadline expiring. Point in fact; we are due to close tomorrow (Monday) on a transaction in Plymouth County that had a mortgage commitment date of May 25th. We received a heavily conditional commitment on the 25th and not one word since. No acknowledgement that the closing is Monday and whether or not we will make it. No calls returned.

What sort of service and support is this? Is this the new order following the credit debacle of the past two years? Some of these buyers are first time homebuyers. They best have a Realtor and/or attorney who knows what to do and can get proper extensions in place to keep from defaulting on their contract and losing their deposit money. And shame on lenders for taking a stressful process and making it even more so by incompetence.

Buyers beware. My advice to those who continue to work with the Top 5 is to make certain you have someone you know is local as your lending officer and processor. If you’ve gone through the 800 numbers you’re likely in trouble – you just don’t know it yet. I will be recommending smaller local lenders who better understand the market and the real estate. Fortunately In Plymouth and Cape Cod there are numerous lenders who survive by having great customer service.

And yes, we have extended mortgage commitment and closing out to June 11th, in case you're wondering. But I haven't told the lender yet.  Curious to see if they make the recommendation tomorrow.  

Now ask me about the FHA/HUD approval of a condo complex…

Write or email me if you have had similar issues lately.
johnm@riverfarmproperties.com