Ten Day Close and Working With Realtors

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Services for Real Estate Pros

I have this deal that absolutely must close in ten days. They want an Arizona mortgage with a 10 day close.

I was chosen as the lender because I offered the best all-around deal, and I was also well-acquainted with the Realtor, or so I thought.

Because the client was scrutinizing every legitimate cost, I went with the lowest priced wholesale lender, so that I could pass on the lower fees to the client. Regardless of what clients tend to believe, most fees on the Good Faith Estimate have nothing to do with the lender.

For example, I can not control how much my clients pay for homeowner's insurance. They can go with Geico, or they can be smart and go to CostCo. But all I can do is give them a recommendation for insurance (as one example) and then total up all of their closing costs for them.  

Of course, because of my client's insistence that I use the absolute lowest priced-lender, because a $50 difference from one lender to another was too much as far as my client was concerned, I also had to go with one of the slowest wholesale lenders in my area.

I made this clear to the borrower. There is a lot of give and take in the mortage world.

About a week before the closing, I called the buyer's Realtor and my client-- three way. 

I explained that we ran into a slight glitch that was beyond my control. The loan should have flown through underwriting, exept that:

The house inspection came today and one of the windows needs to be repaird.

If the my client's realtor would just let it go, we could get this thing closed.

But for an $80 window, the Realtor wants to re-write the contract and change the purchase price by $80. She thinks that she is looking out for her client's best interest.

She thinks she is being "super extra diligent."

She thinks she's being smart.

I think she should look into a new career; one that requires less brain power.

Getting the window fixed is going to delay the closing and cause me to, basically, start over from scratch. If the rates get any worse, I'll have to pay for a rate extension, which really means that my client will have to pay for a rate extension.

This is the same client who asked me to avoid using my preferred lender because they wanted to save $50 in closing costs. Now we are bickering about $80.

So here is what I am going to do now: In order to meet the close of escrow date, and since I need to start over from scratch, I am going to move the loan to my preferred lender-- my fastest lender.

The fees are about $150 more with my faster lender.

That means the client will end up paying $150 to save $80 for a silly window repair and, if I need to extend the rate lock, the client will be paying for that too. So far the Realtor has cost her client $70 extra dollars and it can only go up from here.

Guess which Realtor will never get another referral from me a long as I live? I mean, if somebody calls me up and says they need a Realtor who does not understand basic math and is thick-headed and arrogant, sure, I'll recommend her.

And after this all goes down, I will be informing my client of the horrible job his Realtor did. She'll probably lose his referrals too.

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Rainer
15,760
Carol Marra
Fine Properties - Lakewood Ranch, FL
CLHMS CRS e-Pro

I always tell my clients to ask their lender if they can meet the closing date specified in the contract.  If the lender says yes then I would hold them to it also.  If the lender says no then we deal with the situation and we avoid problems at closing.  We all want the deal to close and as agents we have more than just mortgage issues to contend with.  So I have to rely on my broker to give me good info.  My suggestion to you, Karen, is to avoid that lender next time.

Sep 28, 2009 11:54 AM #1
Rainmaker
150,046
Michael J. Gallo
Florida Luxury Realty - New Port Richey, FL
Florida Luxury Realty - Gulf Home Sales Team

Seriously? 80 dollars?  Some people can be so rational and others well.....  I hope you will not be re-submitting eveything to the slow lender (I think I know who) that will just slow things up even more.  The buyers agent might just surprise you and not make everyone wait. 

Oh Carol, it wasn't the lenders fault this time.  Why do RE agents Always blame the lenders?  LOL.  Little joke.

Sep 28, 2009 12:08 PM #2
Rainmaker
716,133
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

$80??? I have a client like that right now.  They are impossible to deal with.  Just nuts.   I note with interest your comment on the SLOWEST bank...I just wrote about how poor customer service was with some of the big banks.  Around here 90 day escrows are becoming the norm.

Sep 28, 2009 02:37 PM #3
Rainmaker
595,261
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

I'm afraid that more and more people are acting this way. Across the board, everyone seems to be thinking ME, ME, ME! It's become so petty, it's disgusting.

Sep 28, 2009 04:03 PM #4
Ambassador
261,096
Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

I clicked over to see the new photo you posted of Karen.  Sure do miss her.

Sep 28, 2009 05:05 PM #5
Rainmaker
449,852
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Hi Michael~ I love the new photo of Karen!  It seems that most real estate transactions are getting harder and harder these days.  I am lucky though,  As a matter of fact, I have buyer clients right now that have discovered a broken window that has just occurred before closing.  Of course they would love to see it fixed, but they also said they wouldnot lose the deal over it either.  It is so nice when you have reasonable clients  and agents and when everyone works together.

Sep 29, 2009 03:48 AM #6
Ambassador
1,364,602
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

In the end, Mike - no matter what the rates and closing costs are, it becomes negligible when it comes to a timely closing. No matter what they say as they nickle and dime you at the beginning. But I understand in order to get to the end, you have to start at the beginning. Bummer...

Sep 29, 2009 06:23 AM #7
Ambassador
727,926
Courtney Cooper
Ben Kinney Brokerages Leadership at our Keller Williams North Seattle Office - Seattle, WA
206-850-8841

There are some nutty peopel sometimes - I swear we are not all like that:)  Good luck!

Sep 30, 2009 09:06 AM #8
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