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Take your Martini dry and your Closing WET

By
Mortgage and Lending with M & T Bank

I recent went to a purchase closing. The clients had sold their home the day before and were buying a new home with those proceeds.

We had set their sale the day before to ensure the wire would get there in time, they do get delayed at times, and we would have a nice smooth closing.

I did not count on the lender deciding not to fund the first loan after they cleared it. It seems the mortgage banker  they were using (on advise of counseling not counselor I won't name the jerks) had filled their pipeline with mortgages that they could not sell.

In essense they were forced to become a servicer of their warehouse line. The attorneys had released checks to the title compnay and the other attorney with the understanding that they would not be released until the issuing attorney called........oops. One got away and was caught in time.

Long story short, make sure the wire funds and tell your clients  to relax. If they have to wait a day they have to wait a day. I have heard of three separate regional mortgage bankers with this problem. Trust me you do not want to be in a closing with this kind of issue...even if it is not your fault. 

Here is the funniest part. I called afried of mine to tell them my tale of woe, they sent me a fax from the compnay stating that effective the day before they would not be funding anymore loans. This was on December 28th and my closing was on the 29th.

Happy New Year.

Comments (3)

Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL
always fun to swap war stories...
Jan 08, 2007 10:38 PM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

John,

Thanks for posting. Not a fun story after all the work done to get to the closing table. This happens when people don't do their job. Call them on the carpet when the check clears!

Jan 08, 2007 10:44 PM
John Klassen
M & T Bank - Kingston, NY

My side was set for both closings. This was the first closing in a chain of 4 buy-sells. Ironoically the buyer of my clients propertry works for the mortgaeg broker. Mucho egg on face.

Thansk for the comment.

Jan 10, 2007 10:48 PM