When The Pendulum Swings Too Far...

By
Real Estate Broker/Owner with Brooks Prime Properties Wichita Falls Texas

In Real Estate it truly hurts. It hurts everyone. Two major facts in our business will forever remain the same. People in general want a roof over their heads to call home and it's easier to love it and call it "home" if you hold the deed. Rentals are beginning to skyrocket and why?

This is a true to life analogy that tells the story...

Currently on our books is a pending sale for the amount of $605,000. Not bad, huh? The client is financially superb. The appraisal on the home came in at a much higher number so there is plenty of justification for the cost. The client is placing enough money down so that he is only financing $175,000...that's a lot of money down wouldn't you say? Our client has multiple accounts with Chase Bank to the tune of over $1,000.000.00.  

Now, this is a "no brainer". Pendulum in Real Estate

NOT...

Chase Bank has returned to the client for a forth time now asking for verification of minor details, paperwork, proof of funds (held by Chase itself) and hoops of all kinds are having to be jumped! Chase sits on it and won't even turn it into underwriting till it's spot on. Come on! The client is so frustrated that he is seeking an in-house loan from a small bank that would hold the note themselves instead of selling the note to Fanny and Freddie.

AWWWW....there's the glitch. Chase wants to sell the note to Fanny and Freddie so all governmental policies and i's and t's must be dotted and crossed. Now that our lives are being run by the government the pendulum has swung in the wrong direction.

Who cares if the note doesn't sell?

The government will take care of it...right?

"sigh"

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Ambassador
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Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

John, I certainly hope they hang in there too! ANAL-izing is a great word for it!

Jan 18, 2012 08:41 AM #7
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Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

Linda, I'm glad to see you too! And, it is a shame. Houses going to waste...people with no where to live...policies that basically mean if you can't buy it "cash" then move on down the road. ?????

Jan 18, 2012 08:43 AM #8
Rainmaker
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Jim Patton
Century 21 M&M - 209-404-0816 - Turlock, CA
Realtor - Stanislaus & Merced county Realtor.

Deb it sounds like your buyer needs to start looking for a new bank when escrow closes if not before.  Good luck to you and your client.

Jan 18, 2012 09:03 AM #9
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Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

Thanks Jim. I totally agree. Chase doesn't appreciate his million.

Jan 18, 2012 09:06 AM #10
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Jeanean Gendron
The Address Realty - Redding, CA
Specializing in Selling Unique Properties

Deb....we have missed you so.....glad to have any news from you...even that you want to choke Chase...FM/FM! You will get it done....just hang in there. Happy New Year....we want you around in 2012. We have truly missed you!

Jan 18, 2012 09:28 AM #11
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Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

Jeanean, I am hanging...that's for sure! Also praying! I will be around I guarantee it. I've missed you too. It's like stepping into a room full of old friends hearing from you all. Thank you!

Jan 18, 2012 10:03 AM #12
Rainer
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Anna Dovger
Add Value Home Staging LLC, 281-704-6607 - The Woodlands, TX
Home Staging -The Woodlands, TX

Fist of all let me say that IT IS GREAT TO SEE YOU BACK. Isn't it crazy that bank is asking for additional paperwork for financing only 30% of the value. Your client is making the right move asking small bank to finance.

Jan 18, 2012 10:42 AM #13
Rainer
639,083
Carl Winters
Canyon Lake, TX

We are living in an upside-down world. Where and when will it end?

You've been away way toooooo long.

Your Canyon Lake TX friends...Carl and Ceil

Jan 18, 2012 11:04 AM #14
Rainmaker
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Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hey Deb-sounds like you have a very strong client so getting all those i's dotted and t's crossed should be an easy thing to accomplish and it is the correct way to deal in any contract, government or not.

Jan 18, 2012 11:13 AM #15
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Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Welcome back from your sabbatical Deb. Your story does show the pendulum swinging too far the other way with OVER CAUTIONESS. Hope the logjam breaks up soon for this individual case.

Jan 18, 2012 12:46 PM #16
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Anna Banana Kruchten CRS,CRB
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Deb this situations can be beyond challenging. Ridiculous...and then some.  If I were that guy if they didn't get their act together soon I'd be going simplier route.  It's a no brainer loan...come on.

Hey you....I was going to call you for two days now and got hung up with clients.  I am so glad to see you back in the rain.  Hope 2012 is off to a great start!

Jan 18, 2012 12:48 PM #17
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

I was just mentioning you to someone yesterday and wondered where you've been.  I'm glad to see you back!!!

Jan 18, 2012 01:04 PM #18
Rainmaker
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Sharon Lee
Sharon Lee's Virtual Assistance - Roanoke, VA
Retired and loving life

Hi Deb-Anytime the govt gets their finger in the pie they screw with it royally. Like so many others I have missed you and glad to see your smiling face.

Jan 18, 2012 01:07 PM #19
Rainmaker
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Rose King
UTR, Texas Realtors - Friendswood, TX
Friendswood / Pearland Homes

Hi Deb! That is crazy! It sounds like you have a perfect client who would be the perfect borrower for the bank. It stinks that Chase is being so ridiculous. Hope you get it worked out. It's so great to see you back in the Rain! I've been wondering what happened to you. Hope you are doing well! :)

Jan 18, 2012 01:17 PM #20
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Joni Bailey
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

I know that you will get it all worked out. You will hold their hands through all the frustration and see them through this difficult time. They will LOVE you for it! CONGRATULATIONS, girl!! Good to see you back! ☺

Jan 18, 2012 02:07 PM #21
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Peter Pfann @ Fair Realty Victoria, BC, Canada. Pfanntastic Properties in Victoria, Since 1986.
Fair Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

Hi Deb,

We are all having a big Rain Hug...... we are all so excited to have you back amongst your rain family. 

your  clients will be better off having you assist them along the way.

Jan 18, 2012 03:23 PM #22
Rainmaker
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John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Deb - (how are you? :-)

Its hard to really comment on my thought process here because there are a lot of factors that play into getting someone approved. I could easy say, we dont have that many hoops and its really up to the underwriter (which is all true)... however... its easy to say that without actually seeing what the client has provided as proof of funds. Sometimes what they provide is not enough, even though they feel they provided what was asked of them.

Within our world, we have our own underwriters. They are responsible for making sure that the clients are 'ideal' for the investors. Even when we know where the loan is going, our underwriters are still looking at this with a 'human eye'. Sometimes its easy to make a judgement call, and other times they need additional information.

Its harder to find a lender that will hold the note without selling it off (although they do exist). I think the answer for your client is to find a new lender/underwriter to look over the file. Doesnt have to be a local bank or credit union.

I wish you all the best!

Jan 19, 2012 05:26 AM #23
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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

Happy Birthday Debra

January 19th 2012

Jan 19, 2012 11:38 AM #24
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Glad your back Deb..it was birthday yesterday? Really? Happy Birthday to you - make it last throughout the weekend.

Your post if filled with the frustration we are all feeling in this current market. The banks are still making our lives hell...and more importantly, the lives of our buyers and sellers.

Jan 20, 2012 04:50 AM #25
Rainmaker
1,892,675
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I have a buyer obtaining a loan from Chase in Michigan right now. Chase says it understands how California transactions are processed but I had to beg and plead to get the VA Amendatory pushed into funding conditions. Even then they had the sales price wrong. I don't want to talk about a Chase mortgage.

Jan 22, 2012 03:28 AM #26
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