I am so sick of the incompetence and arrogance of people in the banking industry! It seems like the incompetence never ends.
We had a short sale closing last week. The underwriter for the buyer's lender
didn't like the way the short sale approval letter was worded. They wouldn't
approve the loan until the short sale approval letter was changed.
We called up the short sale lender. They said they wouldn't make the change.
The buyer's lender said the deal was dead. The problem is that how the short
sale approval is written makes no difference to them.
Most title companies have millions of dollars in reserves to solve title
problems. The title policy states and guarantees the title, no matter what the
short sale approval letter says.
They guarantee that if any problem arises they will write a check and solve the
problem. That's why you order title insurance! Apparently this underwriter
thought their job duties required them to do the title company's job as well.
We finally called the CEO of the buyer's lender. We told them that they were out of line. We told them that realtors and home sellers can't just make unrealistic demands.
What if a home seller demanded, "I want to make sure all funds brought to
closing have never been laundered or used in the drug trade. We also want the
money to be backed by gold."
You and I know that is not going to happen. I am forced to deal with
incompetence and power trips with short sale lenders. I sure am not going to
put up with it when I'm the customer.
Fortunately, our argument with the CEO's office worked. They realized that they
were in the wrong and made an exception for this sale. What is
your opinion on this?
Do you think that the lender in this situation is out of line? Would you
recommend that we not refer loans to them? Enter your comments below
If you have any questions about a Short Sale, Please feel free to contact me by email at email@example.com or, if you prefer, you can call me at 770-875-4268.
Thanks for reading this, Bion Grady.
Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta.
Bion Grady specializes in loan modification assistance and short sales in
Georgia. Loan Modification Help, Short Sales. Short Sale Realtor.
Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved.
This is not intended as legal, technical, or tax advice. Please speak with a
licensed professional before making any decision. Information is deemed
reliable but not guaranteed as of the date of writing.
The views expressed here are Bion's personal views and do not reflect the views
of Maximum One Realty Greater Atlanta.