If you are one of many realtors who sell short sales….the thrill used to be ‘the demand/approval letter ‘ from the defaulted mortgaged servicing lender….well that issue has improved immensely…but our biggest issue seems to the buyers mortgage…wow!!! There’s not a day that goes by with some new twist to deal with…I have been doing this for quite a while and let me tell you it s getting tougher and tougher to close these files. Below are some of just the more recent snafus. Are you experiencing the same?
______________________________________
Good afternoon, listing agent. I was just informed that the underwriter attempted to do their required verbal Verification of Employment this afternoon…shockingly, no one answered the phones at a school the day before a major holiday. Due to the underwriter’s brilliance in timing, we may need a one day extension to allow them to do their verification on Monday.
_______________________________________
I do not see this closing by 12/04 as of now. The prior credit report for the borrower had to be pulled again because it had expired and the new report shows his scores are 2 points below the program minimum. The buyers father died earlier this year and a collection was filed against him because he has the same name as his deceased father and at some point in the past they shared the same address. We have been able to verify the collections is erroneous and are in the process of getting his report re-scored which may take a few days. The buyer has full intentions, once this mishap is cleared up of closing on the home. I would think we can still close before the date on the 1st mtg short sale approval is up, 12/18/09. Do you think you can work with the 2nd mortgage holder to get them to extend their approval until 12/18?
______________________________________
Buyer agent called me to tell me that we’re going to have a hold up with the property closing because the mortgage company (the buyer’s end lender) has the Title company BLACKLISTED. Right now they’re looking for another title company that underwrites with Old Republic National Title so that the other title company can close the deal.
______________________________________
All conditions were sent into the lender today for final approval and we should have our CTC by Wednesday. The file will then be sent to USDA for their approval - although they just approve the financing - the lender is the one who underwrites the loan, NOT USDA. I am still concerned that we will need an extra few days to get the approval back from USDA. Mike, once I have the "clear to close" from the lender, I will send it to you so you can let the negotiator know.
______________________________________
The mortgage broker told me that he would not be able to close because he was told by his credit company that he would get the documents needed in 48 hours, it actually took a week and a half to get which he received yesterday, that is why he can’t meet that closing date.
______________________________________
The FHA inspector has to do is recertification inspection of the property. Sellers refuse to turn on the water based on lack of funds to do so. The buyer agent cannot get the certification done until water is turned on, hence the loan cannot be approved based on no certification from FHA inspector.
______________________________________
Due to a mix up on the buyer’s credit report, we find that the closing will be delayed beyond 12/4/09.
______________________________________
When the file went to QC for final CTC before being sent to USDA for approval, the QC department is requesting the item below please: Can one of you please get me something to reflect this so I can submit to the underwriter immediately.
Clarification for large increase between list price of home ($150k) to final sales price of $193,500, listed for $150,000, pending sales contract of $165,000 on 6/8 but our contract is for $193,500. Provide evidence of bidding war from listing agent.
______________________________________
…and coming in January! This message is from a trusted mortgage broker in which we work with.
Changes to the Good Faith and FHA appraisals coming in January 2010 - Yes, we all hate change but preparation is the key. We are training all month on new policy and procedures here at Synergy. We’ll be ready to assist you and your clients when the new rules go into effect January 1st, 2010.
The new three page Good Faith goes into effect next month. The three page document simplifies closing fees for the buyer by no longer itemizing them. Instead, the loan originator fees are lumped together as one fee. The title services are also lumped together as one fee. There are rules in place that allow very little tolerance for change to these fees from the initial estimate to closing. We will work with you to navigate these new waters. There will definitely be a transition period, especially with REO properties/title companies and short sales. Much of the title information, including fees, comes in last minute on these transactions. It may be trial and error for a bit, but no one will work hard for you then us! Just keep in mind the rules apply to both the loan originator and title companies.
FHA has announced new appraisal guidelines. No one earning a commission may order an FHA appraisal. This means our end lenders will be in control of the appraiser selection and the ordering process on FHA now too. We are hoping that this will not have the impact the conventional HVCC guides have had on the quality of the appraisals. Local FHA appraisers will still be used and are all quickly getting on the necessary rosters. FHA standards for appraisal approval are higher so we hope this will be reflected in their work. We also hope to continue to work with some familiar names in the area. This new rule will apply to both brokers and banks. Brokers will need to allow end lender to select appraiser and order case number. Employees of banks and local lenders will have to rely on their corporate offices in selecting the appraiser and ordering case number. So, the playing field is level. Again, this will be a tough transition. As many of you know, we were able to get FHA appraisals done the same day in the past. This will slow the process down and bit. Keep this in mind. We’ll continue to discuss both these topics in sales meetings and training classes.
Comments(0)