Builder Mistakes, Oops, They Happen?

My client sold his townhome and purchased a high rise condo that was a conversion. Naturally, the builder was offering a $4000 credit toward closing costs if you worked with his lender. I rarely advise my clients in this direction; however this savings was substantial and could not be matched by another lender. 

First, builder's lender is completely from another planet.  Met him at the open house and he was more interested in having pizza delivered instead of talking to my client.  "Qualified" my client (but didn't do a credit check), didn't verify his income (we knew he was tight).  About two weeks into the process he calls to say he can't do the loan. My client doesn't have enough income! Duh, didn't you check three weeks ago. He then puts us in touch with his "B money guy". Mr. Slick in Texas can sure do the deal for a four percent higher interest rate. In the meantime, I call my lender at Countrywide and he can do a "stated income loan" no problems. So I call builder's lender and have my lender talk to him. Well, still not sure he can do this. Now get this, builder's lender is Countrywide, however, they have opened up their own "branch" for this project. All he has to do is get my lender's info from the computer files. Nope, has no clue what's happening. When I try to reach him, he's always away from his phone, never has files so can never answer a question The straw that broke the camel's back, I called him to find out if he notified by buyer of his approval - got a message that his phone was disconnected.

So I called builder's representative to complain. I then went to the builder's website and wrote a letter to the Director of Operations about this fellow. Get a call two days later from another lender with an APPROVAL. Yes, approval. Life is good.

Now we are down to escrow, I'm reviewing the HUD as my buyer is on his way to escrow. No lender credit of $4000. I called the builder's escrow officer. She said she never received that addendum from the builder. Well, funny, the commission and credit were on the same addendum, so if commission was correct, WHO forgot the credit. Ok, changes were made.

Final straw, waiting for recording numbers and builder's escrow officer calls and says prior escrow officer didn't send enough funds to record and close today. There were loan conditions that two credit cards be paid off. "Loan conditions, I screamed. No one told me or the borrower there were loan conditions." Just then my phone is beeping and it's the lender ---- he tells me my escrow didn't send enough money. I said to him, "when were you going to tell me about loan conditions." He's silent. "Oh, it was miscommunicated". "Miscommunicated I pouted, how about you forgot to tell us. I suggest you call the client and remind him he'll be $10,000 short in his proceeds."  This could have been a DEAL KILLER, however, my client really wanted the property.

Now of course, keys and funding won't happen till tomorrow. By the way, the letter I wrote about the lender, got him dismissed of his services.  Guess what, I'll be writing a letter about the builder's escrow company and new lender that forgot to mention the word CONDITIONS.

This proves that as professionals we need to stay on top of things until the "last dog dies". Builder Mistakes - YES they happen.