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Lender Limbo

I am currently in what I call "Lender Limbo". I was supposed to close today. We had no time as of Friday but still was told today(Monday) was the day. I called first thing this morning and had no answer, as of 2 pm today the mortgage broker was still telling me today was a possibility. My sellers hung around all day with no answers. At 4pm he told me tomorrow was probable but they still needed one more thing. Who works like this? Are the sellers supposed to be sitting around with nothing else to do? They rushed around to clean out the house and garage Sunday night expecting a closing today. They refuse to play the same waiting game tomorrow. They now are not available until Friday. This is ridiculous. Do people not work on a deadline?

Posted by Alayna Berek on 12/03/2007 07:27 PM

Comments (4)

4 Comments on Lender Limbo

DEC

2007

Wow, amazing how some businesses think the buyers and sellers just dont have REAL jobs that require them to be at WORK most days and they actually plan for the closing ahead of time??.. This rudeness in our industry seems widespread and very irresponsible to me. I once almost yelled .. almost ...at an underwriter because they knew a week before we weren't going to close on time.. did they tell us? NO... I feel your pain Alayna. I'm sorry for you and your clients.. Hopefully it will work out soon.

I feel sorry for you and clients. Just know and educate your client that once the " Clear to Close" is given they have 24 hrs to close after that the lender charges the client a daily fee beyond what they scheduled.

Hey Alayna,

Unfortunately the lender is probably overloaded and is behind on getting closings done. The broker should be keeping you informed a little better, but unfortunately he is at the will of the lender. I had a similiar situation with a loan in Mid November. For some reason the lender got very slow on one of my loans, but I knew it was not the norm for them because this same lender had already closed 4 loans the previous week in the same development for me. When I run into problems like this I start calling everyone I can at the lender and basically work my way up the ladder until I get high enough. What was stupid was the loan that got delayed was for a man with $15MM in liquid assets and roughly $1.5MM a year in income. I kept telling my lender that this client can pay cash if they don't get on the ball and get it closed.

Sean Allen
The Mortgage Professionals

no they dont work on deadline... and missing a deadline is not the worst that can happen. Ive had deals ready to settle and the mortgage company went out of business...no loan and we had to start over. I had a guy that had packed the truck and it was on its way up I75 and settlement was delayed. He couldnt settle on his new home (the money was coming out of this one) and his house was empty.. He bought a mattress and slept on the floor. for a week

How about it you mortgage brokers......what can we do to get the lenders to either honor the settlement date in contracts, or to at least give us a heads up ahead of time so we can negotiate an extension and our customers (buyers and sellers) can adjust their schedules

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