Welcome to blog numero uno. I have no idea what I'm doing so perhaps I should become a lender. Not a loan officer, but the head honcho, the big cheese, the guy who decides to whom my underlings will actually loan money for the purpose of buying a home.
Today I am one ticked off Realtor. My lovely Veirs Mill Village listing just went back on the market. The contract is dead, kaput, null and/or void. Loan fell through at the last minute. Underwriters are sooo timid these days!
VMV is a neighborhood of post WWII homes situated in Montgomery County, Maryland. The homes are tiny..,little 648ers I call them in reference to their square footage listed in the tax records. From 1999 through 2006, value exploded...fueled by the SELLER'S MARKET that started in 1999 and greased by "easy money" made available to just about anyone who had a pulse. At the peak, those little rascals would fetch $400K if fixed up nicely. But alas the bubble burst (the balloon deflated) and today VMV is short-sale city. For the most part, if it's for sale, it's a short sale or a foreclosure. Inventory abounds and prices are dropping like a rock.
My lovely listing is one of the very few non-distressed sales available and I was pleased to entertain not one but two contracts after only a few short weeks. The prevailing buyer "seemed" qualified. He was a legal immigrant who went through the Acorn counseling program and had a lovely letter from CitiMortgage stating he was qualified for a conventional loan just for clients who go through credit counseling. As part of due diligence, I spoke with the loan officer. He seemed to know what he was doing. So after some minor adjustments, we accepted his contract.
Next came the big hurdle. With declining value in the neighborhood very prevalent, I sweated the appraisal. Met the appraiser with a smile on my face and comps in hand (Note to Realtors: if you want to get the appraiser "on your side", SHOW UP ON TIME. They like that and are often not afforded that courtesy). A few days later I got the word. It appraised! Yeehaw and Hallelujah! Hello settlement and hello paycheck!
The time for loan commitment and settlement were only a couple days apart, so when no timely commitment letter was forthcoming, I advised my Sellers to simply wait for settlement. In Maryland, if you don't get a commitment leter on time, you notify buyer and he then has 3 days to get you the letter. The day before settlement, I called the loan officer. "We got problems" he said.
Settlement day arrived. Loan officer called to advise me settlement wasn't going to happen. We talked for about 20 minutes and he told me his sad tale of woe. Seems as though he, too, had done due diligence as far as the guidelines for this loan was concerned. Got screwed by underwriting. If he was faking frustration, he sure fooled me.
So, I want to be a CEO for a big company that lends money. If I have no common sense and screw things up BIGTIME, no problem. I'll still get my golden parachute and then Aspen or maybe Vail.
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