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This post is not about ActiveRain groups!!

You know, there is one thing I just hate, when I have a closing, now don't get me wrong, I love closings but I hate it when I get my check before my Seller gets their money. This seems to the trend lately in my area. Here's how it works. I had a closing scheduled for 4:00 last Friday. Now my Sellers and I like to go to the closing first, so we can be done and gone before the Buyer arrives. So we arrived at 3:00 and signed the Seller's docs. Now since it was a late Friday closing, I had already informed my Sellers that the deal probably would not fund until Monday morning, so we can leave wiring instructions with the Title Company and his funds should arrive by Monday afternoon. As usual the Title Company knows to Fed-ex my check to me.

Anyway, on Monday about 1:00 my check had not arrived, so I thought I best give the Title Company a quick call to make sure all is well. First, they tell me the Buyers did not show up on Friday until 6:30 and they didn't finish signing until 9:00pm. Wow! Kudos to my closer for staying that late and getting it done. Especially, since her, much needed, vacation started at 5:30. Secondly they tell me they made a mistake on the HUD and the Buyer now needs to bring a check for $754.00 in order to finalize the deal and get a funding number. OK, well this is news to me. So I call the Buyer's Realtor and she tells me that she has known this since early that day and has already discussed it with the Buyer, who, get this, refuses to bring a check down!

I guess the Buyer was told they didn't need any money at all to buy this house and they were not willing to come up with $754.00 total to close on their new $240,000 home. Now, their Realtor, instead of trying to make this right, had been arguing and yelling at the Buyer all morning and telling them if they didn't do this, well, go find another house.

Damn, I hate it when that happens! Anyway, this is not the time to be upsetting the Buyer. My Seller needs his money. So I made a quick call to the Mortgage Broker who agreed immediately to reduce his fee by $754.00 and zero out the Buyer. I'm back in business. I call the other Realtor and told her the problem is solved (in 10 minutes by the way), we will fax the Buyer a new HUD for their signatures and get this deal funded today. Please call the Buyers and let them know we don't need any money and apologize to them for the misunderstanding. I guess she did because we got the HUD back about 4:30 Monday afternoon.

At 5:00, the Title Company called me to let me know the deal had been funded and my check was placed in the Fed-Ex. At that time, I reiterated that they also needed to wire my Seller his funds and I doubled check to make sure they had the wiring instructions. "No problem, Broker Bryant, I will take care of that right now." Great. My job is almost done. All I need now is for my Seller to call me Tuesday morning to let me know his funds have arrived.

OK, my check arrived on Tuesday morning. Around 2:00 I thought I had best follow up with the Seller and to my surprise he still had not received his funding. I call the Title Company and speak with one of the office managers, since my closer is on vacation, and guess what? They had not even started the wire transfer yet! *&^%#@*$@!!!!! So here we are 3:00 on Tuesday, the wire has finally been sent and maybe my Seller will get it today but more than likely he get it on Wednesday, for a closing that he signed on Friday. I really hate it when that happens. My check is sitting on my desk. I will not deposit it until I know my Seller has received his money. You're probably thinking, why don't I just go ahead and deposit my check? Well folks, here's why. My Sellers are paying me to do a job, and in my mind, my job is not complete until my Sellers have their money in their hands. I refuse to get paid until my job is done. So tomorrow, I will have to make another follow up call to my Seller and then hopefully I will be able to check this one off as a done deal. NEXT!

So that's my post for today. I told you it would not be about ActiveRain groups! That in itself ought to be worth some comments.

Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 12/05/2006 03:43 PM

Comments (51)

closing, funding, real life

51 Comments on This post is not about ActiveRain groups!!

DEC

2006

Reserved Parking For #1 TLW...ROAR!

I am soooo Happy this post is "NOT ABOUT GROUPS!"

I know you put that NEXT in there just for me. Hubba Bubba. xo

It is our Company Policy not to cash the checks until the wire transfer is complete. Makes good business sense.

We both know that a Realtor should not be throwing a hammer into the fan on the day of closing. What else is there to say about that...

Except of course...NEXT...Hubba Bubba...Ahhhh.

TLW "The Lovely Wife"...Excellent Post. I Am Once Again Impressed. :) ROAR!

wow-i'm still shaking my head that the buyer agent was yelling at her people instead of trying to find a way to make it work for them...not the best way to deal with it!

And i like your policies-anyone who reads your stuff would surely feel comfortable as your client, or sending you a client. In NC, no checks are disbursed until the deed is recorded so the checks are sent out all at the same time. which is usually a bit after closing so we have to chase down seller proceeds a LOT.

Leigh, I would like to think getting mad and yelling at the buyers is an isolated incident. But I hear this all the time. I just can't imagine losing my cool with a customer/client or anyone for that matter. Amateurs:)

Wow seems to be the best word here so saying it again...WOW. First, some of these kinds of things would be nipped in the bud if the HUD statement was given to people at least 24 hrs before the closing; now I know there are exceptions to why that can't happen but here, in Cleveland; that is one of my biggest peeves; don't surprise someone on the day they are already most stressed. Am I wrong about this feeding into it? Curious what others think. To the bulk of your post. Our Sellers always get their money first; we are an escrow state, the monies get mailed out if necessary, but normally the check is cut when the Sellers close. We normally get our commision checks (average time) within four days. Sometimes longer if everyone is out of town, bank deal, etc.

BB, maybe you would like to make your life easier and move to Cleveland? I can find you a gorgeous house, we have an awesome stock of beautiful homes with interesting architecture; and I could use someone to shovel my snow : - )

Geez- that buyer agent really owes you one! The possibilities were very obvious that this could have come unglued.

I think follow up is the reason you are successful. That buyer will know YOU were the one to get the "fee" dropped and YOU will be the good guy in this scenario should he need to sell or hear of someone needing to sell.

Additionally- THANK GOD the seller didnt need his funds to get into another home- that would have been BAD! Glad you got it worked out. HI TLW! Get any new shoes today ?!?!???

Bryant....all I can come up with this one is - that's JUST WRONG!

But Bryant—I like posts about groups—there is nothing better than posts about groups—I live for posts about groups—I often write posts about groups. OK—I’m fibbing just a bit. I do like well-written posts on almost any topic, including groups, and as always this one is well-written & tells a good story.

Jay Merton

Hey Broker Bryant, I applaud you for not cashing the check until your seller receives theirs. You get an A+ in my book for that.

In NH we don't even get to the closing table until the loan is funded only once or twice do I remeber we had to wait until the closing company went back to see if the funds were deposited in there accounts. Usually this occurs with west coast loans.

All the funds are dispersed and occasionally I will be asked to hold the sellers check until funded. Closing company records the deed and we are all set.

Just curious did the buyer get to move in Friday night?

I see you have your hands full over on your other blog.

Thanks Jay

There you go again, Broker Bryant...doing the right thing! Kudos

I'm glad to hear that is closed as TLW was surely prepping her 'to buy' list while that check sits on your desk! :) (i kid)
Way to rise above it and wait it out. The principle of it is what makes you the better person and Realtor. These silly delays due to other people's incompetence are without excuse. Shame on that Realtor! but back to you... you rock, dude. I mean, sir.
nick

What groups?

Thanks for all the comments. In my area, central Florida, closings are handled by a title company. Usually they receive the closing package via e-mail several hours prior closing. The funds are wired to the title company. Once both parties have signed the signed documents are faxed to the lender for review and then the title company is given a funding number and authorization to release the funds. Getting this funding number can take 10 minutes or several hours. If the closing takes place late in the day the funding will not happen until the next day. Buyers get the keys at funding unless negotiated differently.

On this deal the papers weren't finished being signed until 9pm on Friday. The HUD was wrong but it was not caught until the funding review on Monday morning. The proceeds for the second mortgage was off. So the HUD the buyers signed at closing was zeroed out but when the second was changed they owed $754. This is what started the issue. The real problem was when their Realtor instead of solving the problem started fighting with her buyers. The buyers were right. The GFE stated they were zeroed out at closing. Their Realtor should have known this and just called the LO like I did and had him correct it.

I think this is the first closing she has had for a while and instead of just dealing with the problem, which was minor, her stress kicked in and she blew the whole thing out of proportion. The smartest thing she could have done, was made me aware of the problem, when she first found about it and it would have been taken care of in matter if minutes.

I had actually negotiated a 10 day post occupancy for the seller so they are still in the house.

BYW the seller called me at 5:30 to say he just received the money in his account. Yippee!!!! Now I can deposit my check:)

Smiley face here...Hubba Bubba...TLW...ROAR!

That why I respect you so much Bryant, you are a businessman. I hate realtors who are willing to let a deal fall thru due to mere ignorance. Congratulations on closing the deal! I've gone down that road before and had to dip into my pocket too as well.

Hats off to you for fixing in 10 minutes what took the other Realtor all morning... It is amazing that she almost killed a deal for $754 especially when she was about to make what? $7,000? How about sharing the expense with her client or the mortgage broker who was so nice to cut his commission?

That check you were holding was surely making a hole in your pocket since like you always say, your wife is expensive ;)

Carole, you said that all this could be avoided if we got HUDs at least 24hrs prior to closing... huh? have you ever gotten one NOT the morning of closing? Supposedly, banks must send HUDs to the borrower 48 hrs prior to closing for review. In my almost 6 years doing this, I have never seen a HUD more than a couple of hours prior to closing. It is outrageous to me that buyers must run to the bank to get cashier's checks without knowing how much money they'll need to draw only a few hours before they need to show up for closing.... Is there anything we can do to enforce RESPA and have banks send HUDs in advance like they are supposed to?

Yael, I have three separate dates on my purchase offer/contract; maybe you guys do too, dunno. The first date is when all financial docs and legal docs are to be in the possession of the escrow agent/closing officer. The second date is the filing date (at the Courthouse). The third date is possession. I might have the last two items occuring on the same date, but I always build in at least two days between #1 and #2.

If I get to five days before the close and my weekly calls have not produced a 'yes it should be out of underwritings the day before our funds and docs date' I ask where the issues are and I get on the phone. Now of course there are times when nothing I do changes a thing. But normally I can clear up anything by calling and getting everyone together who needs to produce 'stuff' to make the underwriters happy.

Im sure you all know this stuff, but this is where I earn my commission. I try to do everything I can to make sure all the is are dotted and t's crossed. But what really helps is that two or three day span between the docs date and filing. Even if things are held up until the docs date, then I have two or three days to play with. The underwriters have released the info to the escrow agent/title company. No excuse to not have a HUD 48 hrs prior. So I hound about that. And yes, 90 percent of the time I have to hound. This is how I was taught from day one in training.

I agree with you, it shouldn't be necessary to hound. But yes, 3/4 of my buyers have their HUD statement 48 hrs beforehand.

Wow it just goes to show you are a true professional. Your sellers and the buyer were lucky to have someone who can think through a closing glitch not get caught up in it. It is too bad your title company didn't make your transaction smoother.

DEC

2006

Colorado ... No banks ... No Attorneys. Just Brokers, Buyers, Sellers, loan officers and title companies. We can usually get a HUD-1 about 48-24 hours before close, but there have been plenty of times where HUD adjustments happen at the table.

Bryant- Were there more upstanding brokers with such integrity ... our profession would not have the "rap" that it does.

Nice post Bryant and I am happy not read anything about groups :) I am surprised the buyers agent resorted to the yell fest with her buyer instead of trying to create a solution for a tough buyer...hmmm...i think there have been one or two posts on AR regarding unprofessional agents but maybe i am mistaken :P

Had I been the buyer's agent I would have gone through the HUD-1 line by line. Some agents focus on problems, great agents focus on solutions. They were lucky to have you on the other side of the transaction.

All's well that ENDs!

I love your follow up... But how do you make time to call each and every one of you sellers every day, list, sell and write the best darn posts on AR?

Inquiring minds want to know!!

www.HomeRome.com

Baltimore,Md

Great job Broker Bryant!!! You have great moral principles. I hate it when the other agent messes things up with their clients making it a bumpy transaction. Keep up the great posts. - Aloha

Great job, BB!! I've had closings where they still weren't funded by the time the papers were all signed at the closing. I sometimes already have my check, for various reasons, and like you, I don't turn it in until I know my sellers have received their proceeds.

That other agent needs a few lessons, it sounds like. A simple phone call like you made would have salvaged the sale as you did, and just might have kept her from looking like a jerk in HER buyer's eyes, too. Guess who probably won't be called when that buyer needs to sell down the road??

Ann

Here in Minnesota we close at the table. the seller walks away with a check and hands over the keys to the house. The agent sometimes gets paid at the tableand other times a few days later depending upon if it was his or her listing and which broker they are with. I would not feel comfortable getting my clients money before they did.

Margaret...Because other than cooking one meal a day all he has to do around here is practice his hobby which is being a Real Estate Broker. He's got it made. Having a Lovely Wife comes with some serious perks. :) TLW...ROAR!

Way to go... We had to hold keys on a Friday closing. As a result, I no longer schedule closings on Fridays ever. ICongrats on getting the check cleared...and I must add, I cannot believe the buyers agent handled the transaction in that manner. You lead a charmed life! Way to Go!

Thanks for all the great comments!

I could only dream about getting a HUD 2 days prior to closing. It NEVER happens. I'm not sure what is wrong with Florida but almost all of my closing are last minute scrambling to get the package to the title company hours before the closing. It is quite normal for us to be sitting at the table while the docs are being prepped. We are lucky to get clear to close day before closing.

We do not use Attorneys. The title company is at the mercy of the lender and the lender does things on their own time frame.

I have another one this Friday, maybe, hopefully, possibly, and still don't have clear to close. In fact last I heard they were still clearing conditions. We were supposed to close last week and the seller has already moved out. I won't know if we are closing until late on Thursday or Friday morning. Very frustrating.

I thought the same thing that Margaret was thinking!! HOW DOES HE DO IT?

Maybe BB is actually a ROBOT! He is programmed with the newest and most effective Real Estate info. His scripts are perfect! He doesn't need to sleep or even eat. Just use the wireless battery charger!

then again, maybe he's just a hard worker who loves his 'hobby' and has a great wife that supports him.

Thanks BB!!
or should I say "Domo-Arigato MR ROBOTO"!!! ;^)

Nick. That is hysterical. OMG. What the h**l did you to do my husband? lol...TLW...ROAR!

Nick, I'm cracking up here!! I love it!!! Maybe I should put that on my biz cards:)

I take it this title company is now at the top of your list of title companies to recommend for their being on the ball?

TLW, I once said to my husband: "I need a wife" and he replyed "so do I". ooop...So I no longer use that line. BTY which meal does he cook?

www.Homerome.com

Baltimore,Md

Bryant - If you have the word groups in the title than it's about groups - even if it's not! :-)

Good work Bryant. It amazes me how some agents just cannot think creatively to get their clients problems solved. You were so right in taking charge.

She was probably only thinking of herself and maybe having to ante up half of the funds to close.

Shame on her!

Suzanne, I have used Cara my closer for 12 years. Unfortunately she was on vacation. Did you catch the part where she until 9pm on Friday night signing these buyers. It was not her fault. Just makes me appreciate her even more. As for the others in the office, well, I'm not to pleased about them.

Maragret, I usually cook our 1 meal a day around 3:00 pm. I love to cook just about as much as I love to eat. TLW brings me breakfast(toast and a banana) and coffee in bed every morning. We have this married stuff down to a system:)

Tony, I should have though of that:)

Ginger and Roger, Who writes by the way? Or do you share? Solving problems is what we do. For her to lose her cool is just plain dumb. NEVER lose you cool in business. And it wasn't even the buyers fault. It was nobody's fault, just a minor issue that needed to be addressed.

Super Bryant, strikes again...never a dull moment!

I don't think I've ever received a check before my client. But, if I did I would feel the very same way. I don't get paid till my job is done and my client(s) have their monies.

I know how you must feel about your Title Co. I rely very heavily on knowing that my Escrow Officer is on top of things. It's not the Title Company just like it isn't the Real Estate office...it's the Escrow Officer and the Realtor that make or break the deal along of course with the Mortgage Broker.

Hope your Sellers get their wire today so that TLW can do some Christmas shopping.

By the way, what's the hold up here...we are all dying to see these listing .... get over to Listings by Address and post!

So you're telling me it's wrong to yell at buyers?

What is this world coming to?

It really is not a good idea to yell at people. Once you have done this you remove the opportunity to bring the situation into "forward motion". There is almost always a way to solve problems without raising your voice and losing control of yourself. An emotional Realtor does not understand that there is no room in a Real Estate Transaction for their emotions. A Professional always keeps their emotions in check. :) TLW...ROAR!

S0 needless to say.... this all boils down to Thurs, TLW can go shopping !! :)

Thanks for not writing about groups

Bryant......i know you dont know this......but i've been "WATCHING YOU" (and TLW)! What you just posted is another confirmation that attests to my assesment of you. I admire what you and others here have contributed to the RE industry. Your standards are incredible. My husband knows about you and others here because i've shared....he sees me picking up from what i've learned on AR..... You are truly an inspiration - seriously - thank you

Daine, what a great compliment. Thanks.

Fran, TLW is very fortunate she can shop whenever she wants. My only job in life is to make sure her debit card works when she swipes it:)

Gena, Sorry I just haven't had time. I have a lot of listings.

Darlin'...That's the stuff that makes me say...Hubba! Bubba! Throw in a NEXT and I'm good to go. :) TLW...ROAR!

OH I SEEEEEE...
somehow the digital circuitry works with the potassium from bananas.. what will they invent next!?
i forgot to mention that the 'ROBOT' has a built in AVM (automated valutaion model).
one look and the house is measured, GLA calculated, etc. HEY! can i get one of those circuits so I can throw this measuring stick away!
from the road.. little nicky

Great story Bryant i had this happen to me on a few deals throughout the years. I am always on top of the title company and i always have them send me a confirmation of the wire being initiated and sent.

TLW...did you mean to say

A Professional always keeps their emotions in check unless behhind closed doors..Hey we got to VENT, don't we??

BB It is strickly TOLW "The other lovely wife" Ginger that posts.

You won't see Roger blogging here. Not his thing.

DEC

2006

Bryant, I had a lot of respect for you before, but now that I know you almost never get your HUD statement ahead of time, I marvel at you!

Ginger...Nothing wrong with venting behind closed doors just make sure the customers are not around. lol...We should never throw our emotions into a Transaction. Never. Emotions do not solve problems forward motion does. :) TLW...ROAR!

TLW, I agree.

I have a tactic that I use during difficult transactions. I will use email if possible, rather than the phone. Or let the caller leve a message that I can digest and think through before responding

Shaking my head. Up and down for you, showing how it should be done with ethics and determination. Side to side for the all to common agent who doesn't problem solve , but creates more problems. We have run into similar situations with last minute snafus, and all it takes is some common sense to look at the possibilities. Fortunately, we get a hud before hand about 90% of the time.

Ginger I have a gift for you. :) I don't send this to just anybody...TLW...ROAR!

I'm a little late on this - absent for the past two days, sorry. Just like I said on your post today (two days later about don't bury my deal yet) you always have to do the work for both sides if you want a deal to close. The buyer's agent couldn't figure out how to make the call to the mortgage broker?! You should ask them for half their side of the fee, since they were willing to let the deal die if their client defaulted (yet another round of fun).

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