Lenders ...Do you Know WHO your Clients Are ? We Do !

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

  Several times in the last  24 hours...we have had requests from Lenders and Title companies...to "change the name of the buyer(s) with an amendment or notice.  Say WHAT ? Question

    In Real Estate 101, we are taught to ask the Buyer(s) what they use as their name on formal documents...a middle initial...a full middle name...what is their consistent preference ?  We dutifully complete...the offer to purchase and the host of other Offerdocuments required to submit an offer on their behalf...using that same legal and preferred name(s) our Buyer(s) have furnished.

   Also in Real Estate 101 and we would hope Lender 100....the Lender gets a copy of the accepted offer....sure enough....there are the Buyer)s' signatures ....and names printed on the accepted offer....legally, correctly just as the Buyers have instructed.  Who knows better than the Buyer her/himself  what name they have been using as their consistent "legal" monicker ?

       Apparently the answer to that is the Lender who has not read....did not verify the name on the offer with the application....hmmmm...so the remedy from the BankerLender/title company's point of view ?  The real estate agent should amend the offer to whatever name THEY have chosen to use on their documents....oh golly....just what every agent needs...the opportunity to write one more document to "correct" the Lender's error and make the names consistent.

      Interesting I emailed all parties who wanted us to make "corrections" to allow their documents to be consistent...no answer...Yet.    We all make mistakes....and when we do, I am happy ...OK...maybe not Happy....but willing...to correct them...this new wave of  "Let the agent do it" is neither Lone Rangerwarranted nor acceptable to these agents.

        Are we the "Lone Rangers" or is an epidemic of "Agent YOU Fix Its" ?

   This is a real estate inquiry post brought to you by Sally K. & David L. Hanson, honored to be of service to Buyers and Sellers by the names they use most throughout southeastern Wisconsin.

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good evening Sally and David - I have heard so many stories of very sloppy lenders.  No surprise here.

Feb 02, 2018 05:12 PM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David this is the first I have heard of this being a requirement.  It is not unusual for example a buyer to not use a middle initial on a sales contract, but to have a middle initial on my application.  Or a buyer to use an initial for their first name and spell out their middle name on the sales contract, but for me to have their first name spelled out and an initial for their middle name.  Another variation would be a buyer does not like their first name so they never use it, so on the sales contract they sign it with the middle and last name, but on my application I use their first name.  Yet another would be the buyer is a Junior or Senior, but does not use Jr. or Sr when the sign their name.

Why the difference.  It is because when I pull their credit report I want to use the name that is on their Social Security card so I can pull credit as accurately as posible, and the credit report is pulled from the name on the application.  Also that is the way I have them sign it.

However, we have never asked a Realtor to amend the sales contract to match the name on the application as long as we can determine that it is the same person.  Also I always inform the buyer/borrower that if they prefer to have their name on the Closing Document be the name they are accustom to signing to just let our Closing Department and the Closing Attorney know that and the Closing Document will have the name the prefer to sign as.

Never have I asked the Realtor to produce an amendment with a change of name, so like you I don't understand why the lender or Title Company would be requesting you to do this.

Feb 02, 2018 08:26 PM #2
Rainmaker
2,561,139
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sally and David here in California something like this would not come from anyone but the Escrow Officer who tries to match up the Title Co's report so it is imperative the that the seller's names and the property address are matching Title.... but no one seems to care about the buyers... so I am with our friend George Souto  on this one, Endre

Feb 02, 2018 10:26 PM #3
Rainmaker
2,319,128
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Sally.

Hasn't happened to me "yet".  While some of our title companies make errors from time to time, they have never asked us to change our contract

Feb 03, 2018 01:53 AM #4
Rainmaker
1,813,984
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have found at times that even when I ask my buyers or sellers for the name that they prefer, the title company still has to do an amendment, but they take care of it at signing and it really never affects me at all.

Feb 03, 2018 05:05 AM #5
Rainmaker
4,052,632
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thankfully I have not run across this with my business.  But, you never know, there's always a first time.

Feb 03, 2018 05:27 AM #6
Rainmaker
798,865
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Sally K. & David L. Hanson - For some reason, I feel the lending company won't be contacting you again on something like this!

Feb 03, 2018 05:58 AM #7
Rainmaker
3,293,237
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally K. & David L. Hanson ,

I have had this happen. Most lenders tell me to have their first, middle initial and last name on the contract. I always try and do this but a few times especially with long names in the Indian culture they shorten their names and this can be a problem for the lender who wants their full name to match their social security. Both the lender and the title company want either an Amendment or the name changed on the contract so the title commitment and deed match the contract. With Docusign it takes 2 minutes so never gave it a thought and just tried to facilitate the transaction.

Feb 03, 2018 06:29 AM #8
Rainmaker
4,401,559
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thanks for sharing this story.

I like the response by George Souto

Feb 03, 2018 07:06 AM #9
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hi there, I also appreciate George Souto 's comment. We are fortunate to work with a couple of good lenders. However, as you know, we're not always in control of the situation. A sloppy lender creates a lot of unnecessary busy work - not to mention stress. Always fearful they won't get it closed due to some mistep. D 

Feb 03, 2018 09:32 AM #10
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce - Short Sale
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