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Don't Risk Losing Your Dream Home Because Your Lender Failed to Perform

By
Real Estate Broker/Owner with Franklin Homes Realty LLC

Don't Risk Losing Your Dream Home Because Your Lender Failed to PerformI know this may be hard to believe but in the six years I have been in real estate, my closings have always occurred on time per contract. That is until last week.

Are you wondering what happened to delay the closing? The buyer's lender. When I wrote the offer on this property, I specifically called the buyer's lender to make sure she could close before Christmas. She assured me she could. That closing was scheduled for 8 days ago.

The contract extension was written to close on or before 12/30. Eleven days after the originally scheduled closing. Today, the lender called to say the closing may not happen by then. Apparently, the condo HOA switched insurance companies late last week and now the insurance company is closed for the entire week. The lender can't get the documentation it requires from the insurance company and, therefore, can't close. However, had the lender closed as originally scheduled on 12/19, this change would not have impacted our sale at all.

I lost my temper. This proclamation was the last straw for me. I proceeded to tell the lender that this is exactly why I use a preferred lender. A lender who has managed to close all my transactions on time for the last four years when I started using him. Never ever has he failed me. I went on to say that I didn't believe that they had ever planned on closing by 12/19; that they had blatantly lied to my client to get the business knowing full well they couldn't perform on time.

Needless to say, she wasn't a happy camper and I don't care. I pride myself on always being very professional with the vendors I work with in the course of a transaction. Never have I lost my temper and said things I regretted later. But the service my client has received has been appalling from this lender and, frankly, I can't wait until this transaction is over so I can write a terrible on-line review for the world to see.

If you are buying a Franklin TN home and your buyer's agent suggests using a preferred lender, you may want to heed his/her advice. These agents work with people they know and trust to get your transaction to the closing table on time. Sellers are not required to extend a contract if it doesn't close on time. You risk not only losing the home you want to purchase but your earnest money as well.

Don't risk losing your dream home because your lender failed to perform.

Posted by
Tammie White, Managing Broker/Owner
CLHMS, CRS, GRI, SFR
Franklin Homes Realty LLC
Franklin, TN
(615) 495-0752 
GET REAL. GET LOCAL.
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Franklin Homes Realty LLC. Any party who uses this material without the written permission of Tammie White is subject to copyright infringement and possible lawsuit.

Comments (13)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     The frustration is coming through loud and clear, Tammie.  Based on what you are saying, this is totally inexcusable and unacceptable on the part of this Lender.

     I hope you get this Closed next week.

Dec 27, 2013 10:46 AM
Martha Brown
Long & Foster Real Estate, Inc., Annapolis MD 21403 - Annapolis, MD
Your Homes Around Annapolis Agent

Oh Tammie I am going through the same thing right now. Was suppose to go 12/20 and then 12/27 and now they are talking 1/20. Seller extended but I do not have a good feeling going on.

Dec 27, 2013 11:03 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I hate when a closing lasts more hours than needed....but days.. Yikes!

Dec 27, 2013 11:50 AM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I hear your frustration Tammie.  I've gotten a little testy with lenders before.  Drives me nuts when they say they can do something and then they don't.  

Dec 27, 2013 07:44 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Interesting. 

My question is, wasn't there an HOA addendum with an updated insurance cert. and HOA doc review included in the contract of sale???

 

Dec 27, 2013 10:07 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Tammie. This surely is a different tone for you but I get it. Often clients believe they can do better shopping around for a lender, but when it blows up....they could indeed lose the whole thing. Suggested.

Dec 27, 2013 10:16 PM
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

It is sad that many people think that there are kickbacks going on between mortgage lenders, realtors, title companies when that is the furthest thing from the truth. Listen to your agents when they question your lender selection. If you have any concerns, go with one of your agent's preferred lenders. You will end up getting closed on time. I hope to hear you close on Monday.

Dec 27, 2013 10:27 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I echo what Jeff said in #7 above...people often seem hesitant to take our advice before they feel they can trust us - it is frustrating because we are just trying to keep the deal from being derailed. 

Dec 27, 2013 10:49 PM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Fred - It looks like it won't happen until Thursday. Two weeks after our original close.

Martha - I know what you mean.

Sussie - The buyer is worried the seller thinks she doesn't really qualify. That can happen.

Jared - I am always very respectful to the vendors in a transaction but this announcement pushed me over the edge.

Lenn - Yes there was. Those documents had been provided weeks earlier. The HOA was told closing was scheduled for 12/19. They probably assumed that had taken place. The decision to switch insurance companies occurred on 12/20. Had the closing taken place as scheduled, the change would not have impacted us.

Sheila - I encourage buyers to shop around. However, my preferred lender always seems to beat his competition's rates and closing costs. This way my client gets the best rate AND the best service. Plus, we always close on time.

Jeff - I advise my clients that I don't benefit financially in anyway when they use my preferred lender.

Susan - Clients have to lose a home before they really understand.

Dec 28, 2013 12:37 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Tammie, You have a right to be angry but be careful to not burn bridges. You never know when somebody will jump ship and go to work for somebody you do business with.

Dec 28, 2013 04:08 AM
Jill Winchel
Royal Shell Real Estate - The Koffman Group - Cape Coral, FL
We make it easy. You make it home.

Sorry you and your buyer have been put in this position. I hope the seller holds out for these extensions. Of course this has a domino effect if the seller is trying to close on a property also. Buyers do need to listen to their agents regarding lenders and other vendors...we only have our client's best interest in mind.

Dec 28, 2013 06:35 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Oh, and if it's a stacked Closing, it's even WORSE!  So sorry you had to go through this - it's amazing how we have to do our jobs AND the jobs of others on the team, isn't it?  That's when that team member is never allowed to play on my team - ever again!  There is NOTHING preventing me from telling the horror story to future buyers - and I DO and, I hope you will to! 

And, yes, write that review - without those of us who hold our reputations so near and dear, finally doing something about those who don't, this will continue to happen.  Good luck, Tammie!

Dec 30, 2013 01:51 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Debbie - It's very possible my lender could switch companies. My question to him would be, "That bank has failed to close on time for me before. How is that going to be different now that you're working for them?"

Jill - Fortunately, this seller moved some time ago and the house is vacant. The buyer is in a rental but she had to extend that for a month not knowing when we were actually going to close.

Debe - It's an unusual case that this isn't a stacked closing. I can't imagine if a buyer had to have their belongings in a truck for two weeks. The lender has really been unbelievable about the whole thing.

Dec 30, 2013 06:07 AM