Friday, October 7, 2011
Remortgage Horror Stories
For those of us real estate professionals who want nothing more than to see big smiles all around the closing table, any closing that gets delayed or, heaven forbid, never closes at all is very distressing. I'm not attacking mortgage brokers - I've worked with a few excellent ones. However, if the loan is being brokered to an outside investor, everyone loses control.
What can go wrong? Let's start with my most recent disaster. The buyer was working with an agent who (as it turns out) is married to the loan originator. There was a pre-approval letter, and every conversation with the loan originator was very encouraging. My sellers wanted to stay in the same school district until spring, so they put a non-refundable deposit on a rental house. Per the contract, they removed all the pictures and mirrors from the walls and touched up the paint. They packed all non-essential items.
The morning of the closing, I received a call from the selling agent, telling me that the loan package had not yet arrived at the attorney's office. Two weeks later, it never had arrived. The buyer lost her earnest money. The sellers lost the deposit on the rental property. The house went back on the market.
Posted by Staff at 6:52 AM