Tales From The Trenches in
Frustrated or confused in this market? Consider some of these recent experiences, all true stories. Think your lender is giving you fits? How about this one – A couple was looking to refinance their home to take advantage of the new low rates. They were seeking $100,000 on an appraised value of $360,000, 28% Loan to Value. Their credit scores, husband and wife, are 840 and 820 (not a typo) respectively. They were turned down. Why? The stated reason is because they are tearing out their deck and replacing it with a patio, and they used two pieces of siding on their expansion that didn’t match the rest of the home. This is the same asset that the company is already using to secure a higher rate loan. True story. Think the lender didn’t want to give up a higher rate loan? They are appealing to upper management and to their Senator.
We had a Buyer write full price on a bank-owned property. Excellent agent on the other side, no problem, right? Fourteen days later the madness continues. Some adventures along the way: Lender countered with 10% down to a Buyer that is getting a 100% loan. The next Counter they allowed the 100% loan, but said the transaction wasn’t conditioned on the Buyer getting a loan. The last go ‘round included the bank removing the agents’ selling fees. Sound like the asset manager was punching the wrong buttons on the portal, or simply didn’t know what he was doing? Either way, the Buyer has been on an unnecessary roller coaster ride.
We wrote full price on another bank-owned property. They countered one item because “they had to” – the close of escrow. They extended it from 15 days to 30-plus. The Buyers went along and we proceeded. A week later the bank started requesting an early close. They had it to begin with, held up the acceptance to counter with an extended closing, and then reversed their course. This after they took days to accept and then demanded acceptance within 24 hours. This last item is very common these days with bank owned properties.
Then there’s the ex-wife that won’t sign docs for a short sale. Refused to cooperate. She recently went to buy a new home and is running in to problems with her loan because of the late payments on her old home that the ex got in the divorce. They could have been minimized if she would have cooperated 9 months ago when he was current but struggling! She’s threatening suit on the ex-husband because he couldn’t make the payments after he lost his job. Remember, they bought the house on both of their incomes, he now has zero income. Hmmm – what’s a judge to do?
Our Advice: These are just snippets of what’s going on around town. There are many, many more examples that are simply jawdroppers. Hard to believe, but it is the reality and must be dealt with. Whether buying or selling, it more important than ever to have a good seasoned agent to help you navigate this tumultuous Market. It is important to stay calm, stay focused, and proceed to your objective. Things are really quite exciting right now and you can be a part of it – just be ready for surprises.
Keep your eye on your goal and don’t get emotionally wrapped up in the brushes of insanity you’ll experience along the way. Make sure it doesn’t rub off on you and you’ll be just fine. The end game is what counts for you and your family – remember that as you laugh at the ludicrous scenarios that unfold before you and you’ll have fun while you succeed. A good way to live.
When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless!