So ... here's the scenario. I sold a beautiful home to buyers that were absolutely thrilled with their new purchase. They decided to finance their purchase with a loan company that they contacted over the internet - a National company but none the less, off the internet. I recommended three reputable lenders, (one the same company that they elected to use) that I personally know but these borrowers decided to work with a lender who made them promises that they wanted to hear.
Long story short, when the loan docs arrived at title, they were not what the borrowers believed they were receiving and not what they originally ask for. The following is a letter that I sent to the Loan Processor from the original loan company that outlines our experience with that Loan Representative. (Of course I've changed the names to protect the innocent!)
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Dear Loan Processor,
Thank you for your assistance with the loan for Mr. and Mrs. Borrower for the property located at 123 Anyplace, Nevada. I also appreciate you sending the appraisal along for Mr. and Mrs. Borrower. We understand that the appraisal is not good to any other lender; we just wanted to see what the report said.
I must tell you, I received a very nasty phone call from Bill - not his real name. (Mr. and Mrs. Borrower's Loan Rep with the first lender) later in the afternoon after I originally spoke with you (the loan processor from the original company).
Bill - not his real name was very curt with me, very rude and very unprofessional. He basically accused me of undermining the Loan From Your Company to give the business to my "Buddy".
Let me set the record straight for you and anyone else who cares to know what happened. We were scheduled to close this loan on January 10th. On January 8th I got a call from the Borrowers in the late afternoon. They were concerned because they had not been advised how much money they had to send, they were worried about being able to close on time, and they were basically in the dark. I told them that I would get all the info sent to me, email it to them, and go over the details with them over the phone so that when they got the package Fed Ex, they would know what they were signing and what to expect.
I got the HUD, the loan conditions, the note and new loan form emailed to me, sent them on to Mr. and Mrs. Borrower that evening and told them to review them and that we'd comb through everything over the phone the following morning. The plan would have been for them to then receive the package Thursday by FED EX, sign the package, and send everything back to close on Friday as planned.
They called me early Thursday morning and told me that they were very unhappy with the loan conditions, the amount of money they had to put down and the lack of communication they had regarding the loan process. They felt everything was so stacked against them, and they were so troubled by the loan process, that they were just going to walk away from the purchase and the loan and forfeit their $5,000 earnest money deposit.
I was very very surprised because they loved this house and had been so very happy with their purchase. They bought a builder's model for a wonderful price. Everything was just what they wanted. I knew in my heart that they really must be troubled to just walk away, and lose $5,000.00 to boot.
Of course, I hated to see the whole thing unravel at the last minute so I made a call to a lender that I work with from The Other Lender. This lender had talked with the borrowers initially before they entered into the process with Bill - not his real name ; he had their credit and knew what they had originally discussed. He took a look at the situation, and sent me a few options he felt he could make work for the borrowers.
On Friday morning I sent the borrowers an email with the info that I had and suggested they think through their options and make sure that they really wanted to just walk away. I knew the seller would extend for them and I felt confident the lender would be able to perform as he outlined. I sent the email and ask them to just call me after they had time to sort it all out.
On Sunday I got an email from the borrowers saying they still wanted the house and were going to call The Other Lender on Tuesday to see what they could work out. On Tuesday afternoon I got a pre-approval letter from The Other Lender. I extended the contract with the Seller and Borrower, and called the original loan company, out of courtesy, to let them know what had happened and to ask for the appraisal. Your (The processor's) number was the only one I had because of the Loan Docs. I told Mr. and Mrs. Borrower I would notify the original company that they were not going forward with the loan so that they didn't have to.
So ... Bill - not his real name called me and was very upset - understandably. I don't know what kind of loan fees he packed in there but, what ever it was, he lost that commission. He accused me of interfering with his loan, that I had "no business" being involved, and that I should have called him not my "Buddy". He said I didn't know what I was talking about and the borrower was completely aware of all the costs, the changes, that she had to pay off a car loan, and that her ratios were so low that my "Buddy" would never be able to get them the loan they wanted. I don't know what he talked about with the borrowers during the course of the application process; I do know they were confused and not happy with the results of his effort!
Well, now it's 3 days later ... I have loan approval with $30,000 less in total expense to the borrowers including down payment, no paying off car loan, no paying off outstanding medical bill, desktop appraisal in and approved, docs are ordered and the rate is much less with a lower payment.
I told Bill - not his real name that I am not his problem, his poor follow up and customer service is his problem. He almost cost these good people a $5,000 forfeited deposit, losing the home they really wanted and me a very nice sale. It IS my business to take care of MY customers and I am entitled to get involved!
I know Your Company is a great Company - personally I have three loans with your company and recommend one of your loan reps from the Carson City Office all the time. I routinely give each buyer I work with three names and let them interview and choose the lender they like. I don't know how these borrowers ended up with Bill - not his real name or what your internal operation is.
This is what I do know. The situation was not a happy one. You ( The loan Processor) were very professional and very helpful when I spoke with you. I could not have asked for better service, you listened and helped me achieve what I needed on behalf of my clients.
I have been selling real estate for 32 years, my partner and I have sold and closed hundreds of homes and know a "smidge" about this business. It's my opinion that Bill - not his real name was unprofessional and rude to me and possibly to the borrowers, as well. I believe he tried to jam them into a loan that was not in their best interest and not what they wanted ( Why?). Was it to increase his fee? We can only speculate. Something made them very very unhappy with the whole experience.
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So, here's the deal. As agents it's not only our right but, most assuredly our obligation, to get involved with the financing process of our customers.
I'm personally tired of snotty nosed kids trying to tell me how to operate my business and what I should and shouldn't do. These particular customers were , ultimately, best served because I involved myself and helped them find the loan they wanted to achieve. I've been hesitant to be too pushy so that my customers don't think I'm steering them to anyone.
Well, I think you possibly can teach an old dog new tricks! Maybe this is my bad. I've probably been too safe and not been assertive enough to help my customers get the best financing that they can.
Well, enough said, lesson learned! I won't make this mistake again!
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