Old School Stip Chasing for Cancelled Checks

By
Mortgage and Lending with Credit Werx, LLC.
https://activerain.com/droplet/4jwV

I write some blog posts to share my experiences with other professionals. I write some for the benefit of consumers. It's rare that I write a consumer centric post that also benefits professionals such as this one. I want to share an experience that I had recently.

I am working with a woman who purchased a home on a land contract. There were some issues with the file and we have been working with her here at Plattsburgh Mortgage Company for over a year to help her fix up her credit.

So when it finally came time to get her out of the land contract we weren't sure how to do it. When we initially started working with her we had been targeting USDA. However, since she moved into the home she built an addition with a seperate entrance, a seperate electric meter, and her utilities are on a seperate bill. 

That turned the home into a duplex thus making it ineligible for USDA Rural financing. So we decided to do it as a streamline FHA refinance which we can do but then we found out that the land contract had never been recorded. This presents a problem obviously because in order for her to refinance she needs to be the owner of the property. 

Well, the underwriter said that was OK and gave me some simple instructions. She said that the original land contract that we had on file showed that she a down payment on the property. She said that if we can get a copy of the cancelled check that we can do it as a refinance. Now, doing this deal as a refi is beneficial to the borrower because it is an easier process and costs a lot less out of pocket.

Simple right? All I have to do is get a copy of the cancelled check from the borrower. That is when things got complicated. I called her to ask her for the check. She said that she obtained the downpayment money by borrowing from her teacher's retirement account and that she signed it over to the seller. No problem. I called the seller to get it from him and he says that he has 7 different accounts, makes four or five deposits at a time, and has no idea where that check went.

I stayed on them for a couple of days hoping that they could track it down but no luck. Without this check the deal falls apart. I decided to take matters into my own hands. We used to do it all the time long away but stip chasing isn't really something that we do anymore. We have a phenominal processing and underwriting team that usually does it for us but in this case they didn't know what to do.

I called our borrower and told her what I was going to do. I called the teachers union retirement system and explained the situation to them. I very politely told the lady that I spoke to over the phone that I have a borrower signature authorization and that I would fax it over with my request. 

A few moments later I had that check in my hands and we were able to get the deal done. It was super simple to do and it saved the day. I feel very good about that and it is a reminder to me that while things have changed in this business over the past few years sometimes you just need to roll up your sleeves and dig in. 

 

Posted by

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)

www.plattsburghmortgage.net

chris.ohlsen@guaranteedrate.com

 

 

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Topic:
Mortgage / Finance
Location:
New York Clinton County Plattsburgh
Groups:
Addicted to Active Rain
All About Mortgages/Mortgage Networking
Bananatude
Clinton County Real Estate
It's all about them (ThemThem)
Tags:
plattsburgh mortgage
stip chasing

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Ambassador
2,529,401
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Your persistence and diligence paid off, Christopher!  Many people would have thrown in the towel.   Great job!

Jun 25, 2014 07:31 AM #1
Rainmaker
385,608
Julie A. Black
KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI
CLHMS, CRS, GRI, Realtor, Broker

I know this isn't the point of the story but I love credit unions. They are always so helpful.

Jun 25, 2014 07:34 AM #2
Rainer
101,637
Jimmy Chickey
Keller Williams Realty Southwest - Las Vegas, NV
Realtor, Nationally Recognized Author, Teacher

Fascinating.  Always love it when old school techniques save the day.   :)

Jun 26, 2014 03:43 AM #3
Rainmaker
81,535
Christopher Ohlsen
Credit Werx, LLC. - Malone, NY

Fred - Yeah, everyone was actually about to throw the towel in on this one. The seller, his wife, my colleague. I told everyone that I was going to get the check and they all told me that the Teacher's Retirement System would not talk to me. However, this is how we used to do it when I was a broker (As opposed to a direct lender). Now, our processor gets everything for us but our processor was unable to obtain this check. I am glad that it worked out and since then I had to track down a missing 2012 W2 from Dunkin Donuts on another deal. I used the same method and it works. So long as we have a signed Borrower Signature Authorization we can get just about anything from anywhere.

Jun 29, 2014 11:52 PM #4
Rainmaker
81,535
Christopher Ohlsen
Credit Werx, LLC. - Malone, NY

Julie - I agree, Credit Unions are usually a pleasure to work with. Danemora Federal Credit Union is a popular one in this area. They are always helpful when I need to get bank statements and/or loan documents. This was actually the Teacher's Union Retirement System but they were very nice and helpful as well.

Jun 29, 2014 11:54 PM #5
Rainmaker
81,535
Christopher Ohlsen
Credit Werx, LLC. - Malone, NY

Jimmy - Same here. Going to be employing this strategy whenever there is anything that is hard to track down. A couple hours of detective work and 20 minutes on the fax machine is worth not having to kill a deal.

Jun 29, 2014 11:55 PM #6
Rainer
91,072
Whitney Watson
First Heritage Mortgage - Henrico, VA

Chris, thannk you for taking the time to chat with me today about the lead I wanted to send your way.  I hope it works out for you! 

Jul 01, 2014 04:43 AM #9
Rainmaker
81,535
Christopher Ohlsen
Credit Werx, LLC. - Malone, NY

Your welcome Whitney and I really appreciate the referral! Thank you!

Jul 01, 2014 04:46 AM #10
Rainmaker
1,508,875
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

It is great to have a financial adviser like yourself who is not afraid to do that extra mile and to do a bit more. At the end of the day, you have a happy client and a lots of referrals:)

Jul 22, 2014 06:43 PM #11
Rainmaker
81,535
Christopher Ohlsen
Credit Werx, LLC. - Malone, NY

Thank you for the kind words Inna! That is what it is all about. We can do mortgages that very few other lender's can because my business partner, Travis Carter, and I are willing to go the extra mile to get the deal done. We work hard to provide world class service and we do get a lot of referrals as a result.

Jul 23, 2014 12:19 AM #12
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Christopher Ohlsen

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