So. . . Several of the companies that I list REO for require preferred lender pre-qualification. Typically, I love this practice. I have made great relationships with the preferred lenders that have been assigned to me and we have grown successful together. I know that, when I receive an offer, it has a good chance of actually closing because the lender has done their homework.
Lately though, there has been a small hitch in the giddyup. I am pushing buyers and buyer's agents to meet with the preferred lender and, because they are so fantastic, they tend to get the loan but due to new strict underwriting guidelines, the loans are getting stuck in underwriting and not closing.
Imagine my embarrassment when the buyer is paying late fees because of the lender that I, as the listing agent, recommended! The cold hard truth is that it is the underwriters (undertakers) that are holding up the closings, but it doesn't feel that way to the buyers.
New, strict underwriting guidelines in Nevada are my Achilles heel this month. They are requiring more and more sold comps from the appraisers and sending the appraisals for desktop review over and over again. REOs that are contracted with no repairs are getting thrown out with lender required repairs. It takes three days to get two licensed general contractors to the property then the bids must be submitted and approved by the asset manager or investor. Once the bids have been approved, we wait for an opening in the contractor's schedule. Even worse--sometimes the appraisals don't come in until 7 or less days before closing so we automatically need an extension.
I hate closing late--especially on my REOs. It makes everybody look unprofessional and inept. Having to call the branch manager and get a file "prioritized" is annoying and it reeks of inpropriety. Shouldn't every file be a priority? These are people's lives we are talking about here. When an offer is submitted to the bank, if the closing date cannot be met, the lender should inform all parties immediately--nothing is worse than a last minute delay.
Comments(1)