I have to admit that the hardest part of selling real estate is working with the issues that are outside of my control. I’m a Type A personality that likes things done on time, as agreed and with as little interruption as possible. That’s why when loan gets delayed from closing on time because of lending, I get frustrated.
But it’s happened too many times over my career for it to come as a surprise anymore. Not trying to offend anyone here, but it seems as if banks and loan officers do not take as seriously the contracted dates for closing. The fact that a closing slips is always answered with almost an air of “oh, well”.
Right now I’m two days past the original contracted closing date. I went to the trouble of getting extensions signed by both buyers and sellers for an additional three days. All the while I’m constantly told by the mortgage broker (with whom I’ve never worked before) that everything is on course, stips are being met and that they are just waiting on underwriting to finish.
Well, can anyone on Earth tell me, the buyer & the sellers when that might be? And, of course, you can never actually speak to an underwriter as they seem to be mysterious and secretive peoples. Much like the great Wizard behind the curtain.
Oh, no. You see, in today’s environment there is not only an underwriter but a contract underwriter. I’m sure they are also shaking chicken bones over the paper work and maybe adding in some bat’s blood.
Shoot, the properties are being purchased well below comps, the buyer has plenty of liquid assets and stellar credit. So what is the hold up? Two of the stips were items already provided but the underwriter had “overlooked.” (That inspires confidence.) The other item was one signature missing from a tax return of two years ago. Oh, big stuff. Apparently, this is a 48 hour process to confirm these three items that took me less than 20 minutes to take care of.
Now this is a non-owner occ transaction. Did I mention 20% down?
I know there are issues from real estate agents that drive lenders crazy. But this is my pet peeve about how the residential lending industry works.
But while I sit here frustrated, I’ll just have to prepare more extension amendments, drive all over town getting signatures, re-assure and assure again the seller that the transaction will take place, etc. All the while wondering how long the extension should be for because no one actually seems to know.
Chris it is frustrating for us loan officers also right now. I want to scream and rip my hair out most days because of the insane way the wholesale community is reacting to the market right now. It is just horrible business that these companies take 2-3 days to look at 1 or 2 items. It also drives me bonkers that I have zero control once the file leaves my office. Everything is 24 hours, 48 hours, 5 days…and they do not budge. The wholesalers are in control as the sources for funding have diminished and they know we have to take it or leave it. I am suggesting to my referral partners that they add two weeks to every contract from day one and do not ask me for a closing in less than 30 days from the green light to order the appraisal. I would rather so no to a loan than go through what you are going through right now. I feel strongly that the problem is not at the originators desk. The problems and delays are at the wholesale level. However you and I still get the pie in the face when the deal goes off course not them.