Dishonest Lenders

By
Real Estate Agent with RE/MAX Top Properties

I had a dealing with a lender last spring/ early summer that I'm now far enough removed from to comment on.

My clients were ones that purchased a nice property through me the previous year. They own multiple additional properties in my region and one in Florida as well. They make mega bucks in their own company, have good credit scores and a good amount of money down. They DID NOT keep up well enough on taxes and needed a stated loan...right at the time when stated's were going the way of the dodo.

Maybe they shouldn't have been purchasing- it might have been in their best interest to wait...we went through the scenarios and options and they decided they wanted to forge ahead with a lender and mortgage company I had never used or heard of because they loved this property and figured it to be a great investment at the price we could negotiate it.

Offer is written on Saturday morning and in hand waiting on a pre-approval from this gentleman to submit to listing agent. Saturday afternoon rolls around and he can't be contacted- the rest of the day gets away. Sunday: I'm calling multiple times and finally he gets on the phone and assures me that everything's alright and ready- he just can't give the pre-approval just yet; his "licence is on the line, ya know!" The listing agent picks it up Sunday afternoon at warned discretion.

Warning to my buyers....this guy's not entirely legit! 

His license is on the line to issue a pre-approval or tell me he can't do it?!?!?

This guy 'promises' me that he's a GREAT lender he recently switched offices and is moving into a new house- that's why the delays in getting back to me in appropriate amounts of time... After giving me his e-mail address of 'moneymaker-something or other@aol.com' he asks me, "When can I expect your referrals to show you what some REAL lending is about?" WELL, you have a client of mine now---after you EARN my referral, we'll talk!

Warning 2 to buyers...he's already pumping me for different business and not doing what's on his plate!

I'm all for marketing and looking for future business....but don't ask me for it when I don't have any confidence in you to do the job you're on currently!

We do a couple more weeks of him promising me and my clients that he'll get them done....then he starts blaming things on them: They didn't get me this, they didn't do that, etc.

Warning 3 to buyers....he's using you as a scapegoat

 Well.....one is             

Needless to say, we needed to extend closing multiple times and ended up going with a different lender who got the job done and closed in about 2 weeks and my clients are happy in their new home!

The worst part was after all the lying to me and the client that things were going smoothly and getting done, I'm trying to reach him on a final extension day and he's- yet again- no where to be found. His cell phone will not accept anymore incoming messages as his box is full (probably with angry Realtors). I email him to see what's happening and get, from his cheesy e mail address:

Call so and so in processing, she can explain.

WHAT??? After all the promising and passing the buck, you're going to hide from me and not fess up??? DON'T THINK SO!

In doing my darnedest to keep the blood pressure under control and NOT flip my lid, I email him back inquiring about accountability and wondering where the "REAL" lending was. VERY professional language was used throughout, though sarcasm was certainly implemented. I never had a vulgar or unprofessional word for him.

He replies, 'You're unprofessional- and won't succeed in this business." 

I took the high road and decided we needn't correspond further....I'm doing well, I wonder what line of work he's in now?!?!

There's nothing worse than a lender that gives anything but the 100% truth, good bad or ugly. I expect that from all my service partners....If you're not going working as diligently and honestly as I am- you are doing the client and me a disservice and rest assured, will be finding referrals elsewhere! My clients are priority #1....

 

 

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Jim Ludes is a REALTOR with Century 21 Coleman-Hornsby in Grundy and Will County, IL. If you have a question about real estate that he might be able to help with, email him at Jim@JimLudes.com or call/text at 815-712-7786. If you'd rather observe from afar or become friends first, check him out at:

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Rainmaker
87,184
Israel Barden
RE/MAX Big Bear Village - Big Bear Lake, CA
Honesty is always the best policy in any business dealing. I would far rather hear the truth upfront than be lead along the primrose path. It's a shame not everybody is professional in their dealings.
Jan 03, 2008 08:09 AM #1
Rainer
184,561
Tina Merritt
Nest Realty - Blacksburg, VA
Virginia Real Estate
Gotta love 'em, huh?  That's my #1 warning sign...when they start asking for referrals and haven't even issued a bonafide preapproval letter yet!  Great post!
Jan 03, 2008 08:10 AM #2
Rainer
72,503
Joyce Heffner-Williams
Keller Williams Clients' Choice Realty - Monument, CO
Owner/Broker/EcoBroker - Monument Real Estate
A great lender is a gem!  Keep them close...
Jan 03, 2008 08:25 AM #3
Rainer
69,601
Jim Ludes
RE/MAX Top Properties - Coal City, IL
Grundy/Will County, IL REALTOR
Thanks Tina and Israel...I would have had no problems and plenty of respect for a man that said...."These guys cannot get done, at least with my company. I hope you'll try me again."
Jan 03, 2008 08:27 AM #4
Rainer
212,227
Carol Smith
Casmi Photography - Mebane, NC

Jim - you had an unfortunate experience, that's for sure.  But thankfully there are many great lenders out there that will earn your business the right way.  By doing their job, telling the truth, and getting it done - legally.

I have a lender partner down in Cincinnati that is a true gem with stated loans.  I don't know if they are licensed in your state, but if you'd like more info on them, just let me know in an email.  They have gotten things done LEGALLY that I would have walked away from.  

Glad you took the high road.  You are definitely looking out for your clients and that's what you're supposed to do!  Good job! 

Jan 03, 2008 08:41 AM #5
Rainer
51,740
Lori Gilmore
Baird & Warner Real Estate - Joliet, IL
Realtor - Will County Illinois

Jim -- Been there. . .There are only a couple of lenders I trust anymore, I'm sure there are many legit ones out there, but these guys have won my trust and respect.  In the current climate, when I am representing a seller and we are presented a contract with a preapproval from a lender I do not know, I recommend my sellers ask for a second preapproval from a lender I know and trust. That way we have assurance that the buyer is good.

You need a local lender who gets the job done, you let me know!

Jan 03, 2008 11:09 AM #6
Rainer
69,601
Jim Ludes
RE/MAX Top Properties - Coal City, IL
Grundy/Will County, IL REALTOR

I have two that I go to as often as possible Lori, one in your town.....doesn't necessarily mean all clients will use the referral. A good lender is every bit as important to me as a good attorney and home inspector.

I've never recommended a 2nd pre-approval from someone I know.....how well does that go over for you?

Jan 03, 2008 11:18 AM #7
Rainer
51,740
Lori Gilmore
Baird & Warner Real Estate - Joliet, IL
Realtor - Will County Illinois

Sometimes it is met with resistance, but considering the market conditions I have to do everything in my power to protect my sellers.  Recently I waivered. . . though my gut was telling me that the lender was no good, my seller accepted an offer and lo and behold the deal fell apart due to the lender.  Those same buyers then contacted the lender I use and of course there was no way he could get them financed. . . lesson learned (again).  A song, a dance, and a promise from some yahoo on the phone I have never worked with means ZERO. 

Jan 04, 2008 01:43 AM #8
Rainer
69,601
Jim Ludes
RE/MAX Top Properties - Coal City, IL
Grundy/Will County, IL REALTOR
Lori- you're wise beyond your years....that's something I'm certainly going to have my sellers consider in the future. Let me ask you this- do your lenders ever get peeved at being the guy (or gal) that's just confirming that the buyer is worth-while....or are they happy that they have a shot (no matter how large or small) at working with the buyer??
Jan 04, 2008 04:09 AM #9
Rainer
51,740
Lori Gilmore
Baird & Warner Real Estate - Joliet, IL
Realtor - Will County Illinois

They love the shot!  One lender in particular I consider a vital member of my team.  His integrity and follow through are amazing! He enjoys the opportunity to have five minutes with a buyer to prove his worth and very often he wins them over.

Jan 04, 2008 08:58 AM #10
Rainer
234,728
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

WOW Jim!  You started this year out with a B A N G!!!   Way to go!  I feel ya!  I've been through a few of those.... from BOTH ends my client's and their clients.... i never want to sit through that again if i can help it.  With the procedures changing in the lending fields, none of us should in the future.

Good post! 

Jan 05, 2008 01:47 PM #11
Rainer
69,601
Jim Ludes
RE/MAX Top Properties - Coal City, IL
Grundy/Will County, IL REALTOR

Diane- I'm trying to make blogging more of a routine this year....think I slacked a lot in '07.....Unfortunately, I think there's always going to be garbage lenders out there (just like Realtors) that will lie and pass the buck, etc..... but if we can limit the number- it'd be nice.

And bravo to you for using "i".....I love that and will always think of you when i see it!

Jan 06, 2008 04:25 AM #12
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Rainer
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Jim Ludes

Grundy/Will County, IL REALTOR
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