So, did you ever find yourself wrapped up in one heck of a buyer transaction that kept going on and on and on and got worse as time progressed? Every now and then one of those pop up and when it does, it just drains the life out of everyone!
If the first lender (on the 3rd one) had just done his job (newbie or doesn't know how to qualify a buyer) and prequalified the buyer correctly then we wouldn't have such a mess that we've been grappling with for several months. And, of course I always tell my buyers if they have their own lender that lenders can make or break a deal in the wink of an eye if they haven't done their job correctly (now going to have all buyers prequalify with one of the lenders I use).
The buyers got taken advantage of 5-7 yrs. ago by an investor they bought their home from who also just happens to have relatives in the mortgage and appraisal industries. Can you say "mortgage fraud"? Due to the scam pulled on them, the buyers had to go through a short sale and bankruptcy. The DA and FBI have been working the case for some time now and it's still active.
So, do you think that the lender would get this background info on the buyers after looking at their credit history and finding a short sale? Noooooo!!! He prequalified them anyway and sent them on their merry way to go buy a house.
The buyer's were referred to me by my past clients (relatives). We find a house, sign a purchase contract, get the oh so unprofessional approval letter from the lender with no company logo or address and some cheesy story about how they can now go to the next level of homeownership (nothing remotely suggesting that credit reports were pulled and what criteria hadn't been met yet).
After a week, this lender says he's referring them to a credit union for their loan while still trying to work out something (what the??). So then I'm learning from the buyers the FULL STORY of their background (only got pieces of it from them before) and calling the lender to have it out with him. Ta-da, all of a sudden the buyer's don't qualify for a loan from both lenders due to the low credit score, short sale, etc. UGH!!!
So then the buyer goes back to the one lender they used previously who has all of their history with the mortgage fraud (they only used the 1st lender because the rates were better) and we do THREE rescores, taking several weeks and finally get their score up (only cost the buyers $11k to pay off debt, rescore, etc). This takes several weeks and the mortgage broker says the underwriter has to have a letter from the bank that approved their short sale that says the bank didn't start foreclosure proceedings (???). The bank (BofA) wouldn't issue that letter and so off to the next lender!
We're now in the final stretch and might close this week if everything goes right. In the meantime, the sellers lost the bank-owned home they were buying along with their earnest money because the bank would only extend the closing once and only for one week. They've rescheduled the movers 3 times, etc. And now I hear through the grapevine that their marriage is on the rocks.
STRESS, WHAT STRESS?
I want all those people out there who think that Realtor's are just sales people to walk in our shoes just for a week or two (maybe a month to get a real dose) and then see how they view things from this side!
MY GOAL FOR 2010 - Review more of the buyer's background prior to writing a contract and having them prequalify with one of my lenders even if they continue to work with theirs.
Juanita Simkins
Your Colorado Springs, CO Real Estate Expert for buying or selling a home in Colorado Springs, CO. Go to: www.Move2ColoradoSprings.com to view all the foreclosure, bank-owned and resale homes for sale in Colorado Springs.
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