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Real Estate Magic!

It Goes Both Ways! (no, not AC-DC though different strokes . . .) ;)

By: Candice A Donofrio
Monday, July 28, 2008 10:18 AM

We NEED to work together with our vendors in this business. I know, that seems like the height of redundancy. But it seems to need review on occasion . . .

And (sigh) again, as in last month's post, I am referring to the relationships we build and maintain with our mortgage people . . . without whom few consumers would buy properties, and few brokers would get closing checks.  :)

I won't lie to you. I prefer Arizona lenders. The more local the better. (I wanna be able to walk to your house with my dog and a gun - KIDDING)  Seriously, I've got huge respect for some of our out of state pros who have been above reproach on our deals.

But you gotta:

UNDERSTAND THE AZ PURCHASE CONTRACT

KNOW THE AREA and its properties.

Case in point:

What does a mutual cancellation mean? Duh! The buyer and seller BOTH want to cancel. The property failed to appraise for the sale price. Seller doesn't want to lower the price. She would rather hold for a bit longer.

Should be cake.

One of my agents called me last nite to tell me that the (out of state) loan guy says the deal cannot be cancelled.

Um . . . who exactly died and made HIM one of the principals to this transaction?

They refused to issue a loan denial letter, claiming it's not a loan denial when the seller won't reduce price to the appraised value.

Our Contract calls for the property to appraise for at least the sale price.

My agent was also told that since she ordered the inspections, SHE needed to pay for them.

Our Contract calls for the Buyer to perform inspections AT BUYER'S EXPENSE.

Here's my point:

Time was wasted and grief factor increased because loan people attempted to control the real estate brokers' part of the transaction.

Buyer and seller are both cool and we'll work with both principals again. And we'll provide the buyer with a list of competent local mortgage pros who can assist next time.

Mortgage people, please read our Contract before you tell us OR OUR CLIENTS 'how it works'!

We CAN work together if everyone knows their role . . .

 

 

 

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Comments

Mary Welch
Member Since '04

Mary Welch said:

What was my role again Candice, I can't seem to find my name tag today or the hat.

Sometimes we have to be the music director AND the orchestra, other times we are cracking a whip hoping someone will respond.

But all of the time, we should know our own contracts and have to periodically draw pictures for those that don't. I hate it when the grief factor is elevated and for no good reason except someone stepped out of line.

I am guessing that this lender will not be considered in the future.

July 28, 2008 12:34 PM
Jana Davis & Virginia Houghton
Member Since '05

Jana Davis & Virginia Houghton said:

Was the appraiser from out of town also?  I would not be surprised!  We are getting review appraisals done by appraisers from different states.  It is bad enough when they are being done by appraisers from different counties, but at least these are CA people.  We are hearing more and more horror stories regarding cancelled escrows due to this problem.  But I have yet to hear a lender tell us we can not cancel a deal.  Makes you really wonder where they got that guy?

Jana

July 28, 2008 12:40 PM
Phil Anderson
Member Since '04

Phil Anderson said:

What a nut!  

I had a somewhat similar experience...the mortgage broker used Google Earth, looked at the house and proceeded to tell the potential buyer that the house was ugly and that they should find a better looking house....

I wonder if they ever found that body?....  ;)

July 28, 2008 1:15 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

It is sad when a lender doesnt understand their role in the transaction. I am sure his supervisor doesn't know he/she is doing what he/she is doing. Albeit the Lender, Inspector or Title Company, most time they are cooperative and attempt to make a deal happen. It does no one any good to have any side overstep their role or authority. This broker will have a short career if they continue this type of action. IAWTP

July 28, 2008 1:24 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

Local lenders, local inspectors, local appraisers.  I extoll the virtues of these with every Buyer.  I've dealt with both good and not-so-good out-of-area vendors but they always seem to complicate matters beyond what can be an already difficult process.  And lenders now are so nervous that the locals are even more important.

July 28, 2008 1:27 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

[Phil sez: I wonder if they ever found that body?....  ;)]

Using Google Earth? Perhaps the general area . . . Hahaha!

July 28, 2008 2:02 PM
Nate Covington
Member Since '07

Nate Covington said:

Candice,  I just had to read your blog when "IT GOES BOTH WAYS!" was the main topic.  Now I know.

I actually partnered up with a local mortgage banker and opened up a storefront (branch).  As long as I disclose (in writing) that I own more than 2%, the Real Estate Commission is ok with it.

Seems drastic?  

But let me tell you, the lenders that we have had to deal with can be down right arrogant.  They act as if they are the only game in town.  Of course some of them may be the only game in their area (Indymac, etc.).  What bugs me most is how they can delay a closing without any retribution from anyone.

July 28, 2008 11:23 PM
Vance Remele
Member Since '04

Vance Remele said:

Gumbaness says:   It Goes Both Ways!

Many   Mortgage  Companies are real busy now a days ...below..

http://www.mortgagefraudblog.com/index.php/C9/

I am using the major banks and I can tell you from my experience what a pleasure to deal with, Suntrust is my best example recently.

July 29, 2008 7:59 AM
Gail Griffin
Member Since '03

Gail Griffin said:

I'm with Vance! Working with the major banks is so much better! They return your calls and work WITH you to get the transaction closed on time. Not only that, they actually work to get the approval done in the window of time stated in the contract. Hey, that means they are actually reading the contract! Go figure!

July 29, 2008 11:49 AM
Vance Remele
Member Since '04

Vance Remele said:

Hi Gail

Yes to all of the above, I even have Suntrust link on my home page.

Iam done with the boiler room mortgage companies, are there any left ? ha ha

Gail here is something I posted this oh last year I think,

I wonder if they foreclosed on his home and repossessed his new car yet.. I have not seen him around anymore !! have any of you seen him?? he had a great video... its below.

http://www.youtube.com/watch?v=hn5EP9StlVA

July 29, 2008 12:31 PM

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Candice A Donofrio
Next Wave Real Estate Investments LLC

Candice A Donofrio
Member Since '07

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