This last week I had a listing that was scheduled to close, but it was delayed by the buyer’s underwriter. That in itself really isn’t that unusual, but, the stupidity of the delay on this underwriter’s part was! You see this underwriter wanted the amount of the HOA dues from the HOA.
You see there was just one little problem, there is no HOA in this neighborhood. So, when I emailed the underwriter’s boss that there is no HOA, the response came back.
“Great, if we can just get the HOA to issue a letter stating there is no HOA dues in this neighborhood we will process the loan docs immediately” WHAT? I immediately sent them an email back stating, no, you don’t understand, there is no HOA, that is the reason for no dues. If there is no HOA, they can’t issue a letter saying there are no dues.
I really thought that would be the end of it, but you guess it, I got another email from these brain trusts. “OK, we understand, if you can then have the HOA company send us a letter saying that an HOA was never set up that would satisfy us and we will get those loan docs out immediately” REALLY? Who’s on first keeps popping in my head at this point.
I finally called and got a hold of that supervisors, supervisor and said “Come on, this is getting crazy, are they really that stupid?” He assured me he would take care of it, which to his credit he did and the loan docs went out later that day, but 4 days worth of delays over this? I think underwriters are really over doing it and trying to make up for their past fly the loan through attitude, but this one really didn’t need that. The buyers were buying a $300,000+ home and had $230,000 down! (This should have been a slam dunk for the bank)
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