What doesn't kill you makes you stronger... One-Two-Three-Four-Close!

This is a true real estate story that happened just last year involving

  • ONE home and one buyer,
  • TWO lenders,
  • THREE appraisals and
  • FOUR months time from contract to close... And it was not a short sale.

One of my listings received an offer that was accepted by the seller.  Buyer was going to use VA financing and although he was in contact with a local mortgage broker decided to go with an out-of-state lender after doing some Internet rate shopping.  (note: if you happen to be a buyer reading this, you will find out why this Realtor recommends to work with a local lender)

Moving to Spring Hill Florida Photo by Silvia DukesInspections went well, communications with lender seemed reasonable although it was not always easy to reach the loan processor.   Finally, the appraisal was ordered and came back $1000 above purchase price. Buyers and sellers are preparing for their respective upcoming moves.

A few days before closing date, the title company seems to have problems getting information from the lender regarding the closing package.  Then, communication from the lender fell silent. NOT a good thing!

Buyer and his agent finally are able to connect with a manager and find out that the underwriter had discovered that LENDER HAD ORDERED THE INCORRECT APPRAISAL - instead of a VA appraisal, a conventional appraisal had been ordered!

Despite the obvious incompetence of buyer's lender, buyer and seller agreed to an extension of the contract and new closing date.  Lender ordered the VA appraisal - appraisal #2, which came back a few days later at a value $15,000 below purchase price!

At this point, buyer, his agent, seller and I decided to have a meeting to discuss how to proceed.  Buyer and seller both were still committed to the deal; however, seller was not willing to reduce the price by that much and buyer did not have the money to make up the difference.  Additionally, both parties had made moving arrangements including agreed to and cancelled rental contracts respectively.

This is how this deal played out:

  • On my suggestion, buyer decided to work with our in-house mortgage broker to explore other financing options as a VA loan was no longer available to him for this purchase. 
  • This turned out to be a good move as buyer had to start the loan process from scratch but was now working with reliable and competent mortgage broker with a proven track record who was accessbible!
  • Seller agreed to a short term rental of his home to the buyers who had no other place anymore since they had to move out of their previous rental home.  This also worked well for the seller who had already made other housing arrangements.
  • Buyer was able to obtain 100% financing through an USDA loan that is available in Hernando County.
  • The third appraisal on this property within about two months came back just $500 below the purchase price.   
  • Just to recap:  Appraisal #1:  $1000 over, Appraisal #2:  $15,000 under, Appraisal #3:  $500 under!   All within two months time span.  Go figure!
  • Seller agreed to lower price by $500 but did not have to make any additional seller concessions to buyer.
  • The closing finally took place almost four months after the initial contract date!

Spring Hill Home Sold by Realtor Silvia DukesSometimes things don't go quite as smoothly as planned and it takes longer than anticipated before the moving trucks arrive.  This real estate story demonstrates that buying or selling a home is not always an easy thing. 

In this case, all parties were willing to work together to bring this deal to a successful close although frustrations and emotions including anger ran high at times for buyer, seller, and yes, agents - after all we are people too! 

But as Realtors we are professionals who know that our customers look to us for guidance especially when things go wrong. 

I used to tease my seller that I had to increase my consumption of Lady Clairol over his home sale!  This deal may have given me some more gray hairs but it didn't kill me and so it did make me stronger! 

This post is an entry in the Active Rain Challenge: What Doesn't Kill You Makes You Stronger. 

 

What doesn't kill you makes you stronger... One-Two-Three-Four-Close!

   

 

 For more information about Hernando County Homes and Land for sale including Spring Hill and the communities of Timber Pines, Glen Lakes Golf and Country Club, Silverthorn, and Hernando Beach , please call or visit my website!

Let me help you find Your Place in the Sun!

 

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Copyright (c) Silvia Dukes 2006-2013.  All Rights Reserved. 

Listing and real estate market information is current as of the date it was posted but subject to changes.

All content, including text and photographic images, is the exclusive property of Silvia Dukes, P.A. and may not be used without expressed written permission.   

 
This post has been included in Florida Real Estate News Hernando County, FL Real Estate News
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22 Comments on What doesn't kill you makes you stronger... One-Two-Three-Four-Close!

20 Most Recent Comments Displayed Show All

SEP
15
196,286 Points 9 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Silvia - Gotta love RD loans! We are happy that we still have them available in our area.....for now! Great job moving forward for your client and getting that one to the closing table!
6:51pm • #3
306,310 Points 32 Featured Posts Outside Blog Called Shot Master

Hi Silvia, I just heard a similar story not too long ago in which the lender ordered the wrong appraisal .. and to make matters worse, they did not communicate the mistake once they discovered it!

Good call about the meeting of the minds. Sometimes that's just what is needed instead of going back and forth by phone and relating other's opinions. I was glad to read the happy ending!

7:40pm • #4
707,529 Points 47 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Silvia, I am a firm believer that Realtors age as Dogs, every year in real estate is equivalent to seven years for another profession. I was a young good looking guy everyone said you look younger than your age....that was in my 20's 30's & 40's I stopped taking pictures of me:)) I have been in real estate since the late 80's I look in the mirror and my grandfather looks younger I was going to say it is because of Short Sales....but reading your post I had to modify it it is Because of Real Estate:))))
9:37pm • #5
SEP
16
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Paige, our entire County is eligible for RD/USDA loans and they really are a good thing for buyers.
3:53am • #6
777,185 Points 96 Featured Posts Outside Blog Called Shot Master

It sounds like you really had to work on this deal Silvia, nice job.
3:55am • #7
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Andrea, I find that totally unacceptable especially since they still want the buyer to pay for their incompetence. Pretty much same thing happened here, they didn't own up to their mistake until the issue was elevated to a higher level.
3:56am • #8
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Endre, sometimes it seems the craziness is taking over. I'm grateful for every deal that is somewhat "normal".
3:57am • #9
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Tom, believe me, it was not just trying to manage the transaction, holding it together and moving it forward, there was a lot of hand holding and listening to venting episodes involved.
3:59am • #10
955,399 Points 52 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Silvia, it is amazing at times what needs to be done JUST TO GET A PROPERTY CLOSED!    You are the professional and made it happen - congratulations!
8:14am • #11
1,344,201 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

So glad that you managed to hang in there and get this one closed! Amazing what we sometimes need to do!
9:05am • #12
354,316 Points 30 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Silvia,

This is a great entry and one that rings true for me and others too. Lately, the lenders are dropping the ball and have no regard to the closing date. If they'd only be honest right from the start instead of promising quick closings and how much better they are than anyone else, maybe I'd respect them more. But they promise and they don't deliver. That happened to me two weeks ago. The lender needed an additional week to close and then on the day of closing, they wanted more time!

You handled the situation very well with grace under pressure.
10:10am • #13
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Thank you Joan, we do what it takes and often it takes a lot of our time!

Barbara-Jo, isn't it?  It sounds pretty cut and dry after the fact but when you are in the middle of it, it can be quite consuming.

Patricia, thank you, I'm sorry you had to deal with delayed closings because of lender processing.  It makes you wonder why things are taking so long.  You would think they have an obligation to their customers if nothing else than to provide good customer service.   On the other hand, if borrowers are tardy with their payments, you know what happens, the banks don't show no patience nor understanding.
10:17am • #14
850,455 Points 183 Featured Posts Attended Rain Camp Called Shot Master

Yikes....and lenders can be such a problem. I always recommend someone I know and know will take care of the file instead of just send it off and hope for the best.
3:09pm • #15
SEP
22
408,377 Points 19 Featured Posts Outside Blog Called Shot Master

What a mess! It's great that you were able to work your way (and your customer's way) through this situation. 
1:36pm • #16
SEP
23
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Karen, that is my preferred way as well but in this case I was not working with the buyer.
5:15pm • #17
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Melissa, thank you, in the end, everyone was glad it was finally done!
5:16pm • #18
SEP
27
205,406 Points 6 Featured Posts Attended Rain Camp

Good for you for saving this loan. I have listing going sideways because of the incompetence of the lender and unfortunately the buyer seems to think the seller needs to do all the bending and giving. It's not looking too good right now. 
11:21am • #19
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Debi, thank you, these situations are unfortunate.  Sometimes sellers will give in, other times buyers just need to realize, they are not able or willing to buy this property.  It all depends on the parties' motivations.
12:12pm • #20
OCT
02
413,687 Points 88 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Silvia: Boy, this is one you needed an extra large white board to keep track of. Your clients were fortunate you were smart and organized enough to pull it all together.

Thanks for your entry in the AR "Stronger" contest.
5:54am • #21
904,071 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Leslie, thank you, yes, keeping track of the transaction is important and being organized does help!
8:08am • #22

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Silvia Dukes PA,REALTOR®,CIPS,CRS,Green, Spring Hill FL Homes for Sale

Spring Hill, FL

More about me…

Tropic Shores Realty - Ich spreche Deutsch!

Address: Skype: silvia.dukes , 3441 Deltona Blvd, Spring Hill, FL, 34606

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Cell Phone: (352) 584-7441

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Professional real estate service above and beyond expectations in Hernando County, Spring Hill, Brooksville, Hernando Beach, Weeki Wachee, and the Greater Tampa Bay area. Waterfront and Golf Course properties. Florida Immobilien und US Anlagen.

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