OK, really it's just me writing. But my late Father, who was a 2nd generation broker and taught real estate to many of my peers here in the north SF bay area, always said "Never Give Up!". I spent years being the typical adolescent believing I had all the answers, but now at the young age of 51, I really must confirm," Dad, you were so right about so many things". I just hope he hears me!
I closed a foreclosure purchase yesterday where the buyer charged up his credit cards between getting the initial pre-qual to final loan approval ~ a "mortgage qualification 101" no-no. Ugh! One thing that buyers may not be aware of is that any changes to their credit from the pre-qualification date to the final loan approval may have a significant impact on their ability to get their dream home. It is helpful to make all our clients aware of this issue, even as a realtor, just in case the mortgage broker doesn't mention it. And all you buyers out there reading this, please take heed. My friend and client (let's call him Sam) almost lost his dream home by making this mistake. But I digress...
So Sam's mortgage broker and I worked together to come up with a solution. He did not have additional money for a larger down payment or to pay off the credit cards. We went through 4 co-signors (which all failed due to the co-signors' credit or income). Time was ticking away and we only had a few days left to obtain final loan approval on a foreclosure (REO) with a VERY TOUGH bank negotiator. I was miraculously able to negotiate 2 extensions for Sam to get his loan fully approved ~ not an easy task. In the end, we basically had a few days left to close escrow and the lender declined the loan. So I thought we lost the house......for a minute. But my Dad's words came back to me, as they often do. So I got on the phone and called around until I found another local lender who said he could do the loan in 8 days. I then mustered up the nerve to write to the bank negotiator requesting a 3rd extension and, in exchange for it, the buyer would pay a per diem penalty until close of escrow. Another miracle happened and she allowed it. He would be able to get his dream home. I had a sigh of relief and went back to work in 2 seconds flat.
So the new lender approved the loan and the buyer was able to sign final documents, but now the bank and its escrow team were not ready to close. Ugh! Another delay. We were now over a month beyond the original close of escrow date. It took 4 more days for the seller to be ready to close escrow. The grant deed was finally recorded yesterday and I did not get confirmation of it until 4:38 PM. Whew! What a ride it was. And more importantly, what a lesson learned about persistence, perserverance, tenacity and learning to listen to your parents... :)
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