I may be showing my age with this one but back in the day when I started selling real estate - dinosaurs and huts and all that, we went through a process where a loan was applied for and a mortgage commitment was issued and then the loan went to closing. Our Contracts of Sale are still worded based on this theory. What I am finding now however is that a loan is never out of underwriting and therefore never "committed". I have just had the privilege of being the seller of a piece of property and also the buyer of another. In both cases the underwriter was changing things and asking for things up to the minute of the closing. I feel that I have the ability to roll with this a little as I am a Real Estate professional and I understand (????) how the market is working today. The problem is how do we as Real Estate professionals explain this to our sellers ("O Mr. Smith although your home has been off the market for 60 days and the buyer was qualified and received an approval letter, the underwriter has determined that this loan will not be written"). I think that this change in lending policy's affects us in how our Contracts are worded as they still refer to a mortgage committment. Has anyone seen a good old fashioned mortgage committment in these new and challanging times? How do we prepare and protect our sellers in this market. The lenders are doing a lot of CYA as are the appraisers I think that we as Realtors need the same protection and it appears to be overlooked. Any thoughts?
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