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Did you know banks and mortgage companies are SO busy they can't close loans?

MOney Last month, I wrote a post about my deal from somewhere warm and fiery. In a nut shell, I put a property under contract on February 23rd, to close on April 1st. On March 28th I was told the file just went to under writing and it would take NINE BUSINESS days to go through that process. You can read the post HERE.

Today is April 15th and the deal is still not closed.

On Monday I was told by the owner of the mortgage company - the blame rests solely on JPMorgan Chase Bank.

You see, Chase is so busy they could not get to our file in a more timely manner.

The mortgage broker said he was told last Friday, April 11th the earliest opening for a closing would be Thursday the 17th with docs delivered on the 16th. Until that time, Chase had no one to prepare the docs and give authorization to fund.

We were given our alloted day and time and by golly, the buyer and seller better make arrangements to be at closing when summoned.

My question to the mortgage broker was a simple one: Why hasn't anyone let the media know that major banks and lenders are so busy they have to delay closings?

Being "so busy" would imply the market is good, strong and getting even better. That's not what the TODAY SHOW is reporting. But that is what our Active Rain family reports.

Perhaps the mortgage broker is making up stories. Or, perhaps Chase is so busy. Or perhaps the bank let a bunch of employees go and now are getting caught with their pants down - the market is improving, are they not prepared?

The media continues to report doom and gloom, so why can't we get this deal closed?

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Contact Debbie DiFonzo, Broker, United Country VIP Realty, at 417-468-5900 to list your property for sale or to purchase a property in Marshfield, Conway, Phillipsburg, Lebanon, Long Lane, or Buffalo, Missouri.

To view all our listings and auctions, visit: http://www.uctheozarks.com/ or http://www.FindYourFreedomMissouri.com

Contact Debbie at: Debbie@ucvip.com

Posted by Debbie DiFonzo - Lebanon, Marshfield, Buffalo Missouri Real Estate on 04/15/2008 09:43 PM

Comments (14)

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Originally posted at: Living in Missouri Blog: Did you know banks and mortgage companies are SO busy they can't close loans?

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14 Comments on Did you know banks and mortgage companies are SO busy they can't close loans?

APR

2008

Debbie, I hope it goes through soon, I feel sorry for the buyers especially.

Thanks Carole - you are right, the buyers are in a pickle. Schools here end the middle to end of May. The son will just get enrolled in his new school and it will be over!

April 16th and still no closing... It's ironic, the more time I put into this deal the more messed up it becomes. Ever had a situation like that?

I'm currently having EXACTLY the same experience with Chase. It's been in "underwriting" for a week now. They are probably too busy figuring out how to get the money....

Mirela - You're my hero! Not that I wish you a problem but I was beginning to get a complex, that it was ME! <G>

Have you also been told Chase is "just too busy?"

APR

2008

Oh my gosh Debbie, that is awful. I agree though, the media keeps reporting doom and gloom and that scares off our buyers, if the media would tell it like it REALLY is, we would all be busy wouldn't we!? Lenders are lenders. I hope it all works out for you.

APR

2008

Debbie, It is not only with Chase. It's with all of them... and is definitely not you.

APR

2008

Heather - You are so right - the media for some really will not tell the public real estate is regional, that every area , every deal is not doom and gloom.

Arina - Thanks - I really was beginning to think the problem was with me! After weeks and weeks of trying to get information, I had to ask myself, where did I go wrong! <G>

BLOG UPDATE: We finally were able to close this deal on Tuesday the 22nd of April. After the paperwork was signed it took the Closer five voicemails, three faxes and two emails to obtain funding approval! Crazy!

Sellers are now making an offer on a new home and the Buyer is having all his buddies help move him in!

Almost two months to the day after writing the contract, we closed.

MAY

2008

A month is more than adequate time to underwrite and close a loan. When did your broker submit the file? It seems to me that he sat on the app for a while...

MAY

2008

Andrew - The Buyer had actually filled out the credit app and started the loan process prior to making an offer on the home. It took two months from writing the contract to closing, plus the time spent prior to the offer. Not sure what the real issue was -- bet I never really know! <G>

MAY

2008

Hi Debbie, what you had was a case of no communication from the lender. I am so glad to be working for a Reputable Bank where Communication is Top Priority to my customers , Realtors and Business Partners. I have been in this business for 20 years and what I am experiencing now is that more realtors are working directly with the Banks versus to Mortgage Companies. If I can be of assistance to answer any questions, please feel free to call me. Much Success to you. Have a great week !

What most folks don't understand is the banks are broke. They are illiquid with assets that are declining

"So busy" is the new euphemism for "we have no money to lend"!!!

Eric - You are 100% correct: communication between lender and Realtor is key.

Jim and Buyer's Choice Realty - I'm a little spoiled. We have two "local" banks here in town that still do "in house" loans. They will lend on properties the big boys won't touch. Since they are local, I can stop by to obtain information if I need it; couldn't do that with the deal above.

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