(To my valued readers, please forgive me in advance for the following rant)
Things can go wrong in a real estate transaction. Shocking, I know. But trust me, things can and will go wrong. It's just Murphy's Law of Real Estate. Eventually your number gets called and you've got some glaring issue that needs to be resolved.
A friend once shared some sage words of wisdom, "If you don't make mistakes, you never do nothin!"
So let me begin with the honest admission that I am not without sin. I have made, and still make, my fair share of mistakes.
However, one of the truly frustrating aspects of this business is that you can do the very best job for your clients, perform to the utmost of your talents and capabilities, and still there are elements to every real estate transaction that are outside of your power to control or influence.
The best strategy is to simply hit these challenges head on when they arise, working together with all involved parties, and attempt to achieve a timely resolve, for the primary benefit of our clients.
Unfortunately, there are times when certain individuals who are an active party to the transaction aren't willing to step up to the table. Sadly, they don't even know there IS a table, or that they are supposed to be sitting at it with everyone else!
I recently closed on a short sale where I represented the Buyer using USDA financing. I know, a short sale AND a USDA loan. Not a good combo!
We were blessed to have a really great agent on the listing side who was highly organized and provided excellent communication. We received short sale approval from the lien-holder in record time!
But things slowed to a snail's pace from that point forward.
Now, granted, my Buyer's loan officer had just recently switched brokerages. We all know how much of a hassle/turmoil such events can have on our ability to conduct business. And so, a great deal of lattitude and patience was extended to him during this time.
But at some point, you would think the dust would adequately settle, the loan officer would aclimate to his new surroundings, and it would be back to business as usual. One could only wish!
The delay in obtaining USDA approval dragged on and on. Getting any kind of meaningful information, let alone a returned phone call, were next to impossible!
Finally, after what seemed like eternity, and several contract extensions later, we finally got USDA approval! Well, sort of. It took about a week and a half just to figure out whether or not we had actual approval or not!...
Loan docs at long last made their way to escrow and the preliminary HUD-1 was sent out for review/approval.
That's when my Buyer called me extremely upset and concerned. The final numbers showed they needed to bring in over $2,000 to closing. Their Loan Officer had assured them that they wouldn't need to bring any money at all to signing.
So when we called him for an explanation, guess what? He was unavailable. In fact, he was on a plane going somewhere out of State, and couldn't be reached! Something he had neglected to tell his client, my Buyer!
Evidently, the numbers that the Loan Officer had been using were from the very first short sale approval letter the lien-holder had issued months ago. Several revised letters had been issued since then, but were never taken into account. Hence the shortfall of over $2,000!
So what do you do in the 11th hour when your Buyer has put in their notice to vacate their current rental, the lien-holder is threatening to pull the plug and start over again at square one, and your Loan Officer is MIA?
My Buyers did their best, given their limited resources at the time, and contributed a few hundred dollars to the cause. But the majority of the shortfall was still there, waiting for a savior.
Enter the Deep Pockets.
Granted the sales price was only $142K, but fortunately I had reached my brokerage contribution plateau a few months prior, so I didn't end up working for nothing. I was able to cover the shortfall from my commission and still put a few Benjamins into the bank. The important thing was that my Buyer, who did everything right, and nothing wrong, was able to successfully close on a home that was perfect for their family!
Several weeks after closing, I was still waiting for some kind of word or acknowledgement from the Loan Officer. A phone call, an email, a text message. Anything. Just a word of 'Thanks!' for taking the financial bullet to get the deal closed. An apology for falling asleep at the wheel. An offer to repay me for losses I never should have had to incur in the first place. Seemed fair to me. But nothing.
In the end, I can't control what others do or don't do. I can only take responsiblity for my own actions, and continue to focus my energies on representing my client's best interests!
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