Want your deal to die quickly? Pick a bad lender.

Don’t let your deal become a trainwreck

Your lender can make or break your deal

Want your deal to die quickly? Pick a bad lender.

Actually quickly is not really accurate. Pick the wrong lender and your deal will die a long, slow, painful death.

Probably the most popular topic I seem to blog about is the importance of of picking a great lending partner. A great lender can make things go smoothly or they can literally kill a deal. I think a great lender may be even more important than a great real estate agent.

Talk to your real estate professional when you are thinking of lenders. We make no money or have no benefit of recommending one lender over another. What we will do is recommend lenders we know who can get deals closed in a reasonable timeframe.

Here is a recent story that we are going through right now on one of our East Valley short sale listings. We represent the Seller in this case.

We received an offer and quickly got an approval letter on the short sale listing in early August. The short sale servicing bank gave us until late September to get the deal done, which should have been plenty of time.

In mid-September I was trying to get an update from BBVA Compass, the Buyer’s lender of choice. No matter how hard I tried, trying to get an update from them was pretty much a waste of time. Good luck getting anyone to call you back.

When we got to three days left before closing and we still did not have an estimated time from Compass we issued a CURE notice to the Buyer, requiring them to live up to their end of the contract. Which in this case meant getting docs to title.

We finally got a response from Compass saying they had a normal close time of 60 days, which almost made me fall out of my seat. They promised they were going to expedite this and if we could get another postponement on the foreclosure date (our second one) they could get the deal done in two weeks, if not sooner.

After begging and pleading the short sale servicer granted another extension for two weeks.

We were told right after we received the extension that the file was heading into underwriting and we should be getting docs before long.

Fast forward two weeks and guess what. You got it, no docs, no communications, no nothing. Now the Buyers are faced with not getting the house they want and our Seller’s are faced with a quickly closing in foreclosure date.

When it comes time to getting a loan closed make sure you use a great lender. Make sure your lender has in-house underwriting, in-house doc drawing and has the ability to table fund. If they don’t have these things they will tell you they are not important. They are!

Short sales are getting harder, not easier. Banks are quicker to foreclose than they have in the past. If you are serious about getting a house, make sure you pick a lender who can get a deal done in under 30 days. There are plenty of them out there. I personally would stay away from any big bank and look more towards mortgage brokers.

I would rather pay a little more in loan costs than to risk losing the house of my dreams and maybe my earnest money too because a lender who may save me a couple hundred bucks in closing costs cannot deliver a loan in a reasonable timeframe.

If you need a list of good lenders in Chandler and the East Valley email or call me and I will provide some names of lenders who have delivered for me time and time again.

 

Photo Credit cdruzin on Flickr

Kristin’s Phoenix Real Estate Update – December 2011

I know you have been anxiously awaiting the latest Phoenix real estate update, so here it is! As 2011 draws to a close, we are seeing some continuing signs of true recovery in the Phoenix real estate market despite the gloom and doom that some “media experts” continue to report. That being said, according to one Wall Street expert, we are not quite in recovery but in the stage just before. And a little holiday gift from Fannie Mae, Freddie Mac and other major lenders for those homeowners with pending foreclosures.

Tempe Gardens HOA causes short sale to become foreclosure

When you do a lot of short sales, every now and then you are going to run into a situation where a foreclosure happens and there is not much more you could have done to prevent that. Luckily that does not happen much, but when it does we like to tell about it here because there is usually a lesson to be learned.

We had Tempe condo we took the listing on earlier this year. When we took the listing, the condo development, Tempe Gardens, was FHA approved. We accepted an offer that was an FHA offer.

When we got the approval the buyer started to go through their loan process and we discovered that the Tempe Gardens had allowed their FHA certification to expire just a couple weeks before we got our approval and we now had an issue where we needed to get it recertified.

Now this is not an impossible task. The lender was working with us and the buyer to get this thing closed and we believed that we could do it. We made the request for paperwork from the HOA board at Tempe Gardens and they told us to talk to their management company. So the lender went to the management company who took forever to respond. Finally after many requests the management company sent over documentation. The problem was, it was only partially the documentation requested and even some of the documents they sent were not complete.

The management company told us they had provided everything they had from the HOA board at Tempe Gardens. So we went back to the HOA board and of course they once again said said talk to the management company. After many weeks of back and forth with both organizations, and calls from the angry homeowner who had paid close to $200/mo to this HOA board over the last few years, the buyer realized it was not going to happen.

We had been informing the servicer all along what was going on, and they had even granted us an extension to allow time to complete the process. But after dozens of hours, there was nothing we could do and the servicer nor the investor would allow us another extension and this condo, even though receiving approval for a short sale, went to foreclosure.

What should be really frustrating to the homeowners in Tempe Gardens is this unit was going to sell for $75,000 as a short sale is going to end up selling for much less than that as an REO property. Shouldn’t the HOA be helping to increase property values?

So I guess the lesson learned is not only check if your condo development is FHA approved when you take a listing, find out when it is expiring and if they are planning on renewing it.

Mesa short sale townhome listing – Cash flow cow

Looking for a condo that will cash flow like crazy, check out this Mesa short sale townhouse the East Valley Team has listed. This is an adorable two-story townhome. Updated with laminate flooring, decorator paint. Lots of storage including a large pantry in the kitchen. Shaded patio/courtyard. Perfect investment property with tenant willing to stay.

East Valley short sale basic training

East Valley Team member Kristin LaVanway talks about how East Valley short sale buyers need to be more serious in their offers.

The East Valley Team is taking a stand. When a buyer submits an offer on a short sale – it is hazardous to everyone’s health (financially speaking) if they do not intent to execute that contract fully.

Gone are the days of putting lots of short sale offers in to see what sticks, Banks are digging and making the process much harder so the message from the East Valley Team is this: You better be serious if you put an offer in on one of our short sale listings.

East Valley real estate negotiations 2011

East Valley Team member Kristin LaVanway talks about how real estate negotiations in the East Valley have changed.

Is it just me? It just doesn’t seem like it’s much fun any more to negotiate a real estate transaction. Short sale, REO’s and homeowners who have have watched all the equity drain from the homes have taken all the pleasure out of the process.

Short sales and responsibility of buyers agent to be honest

East Valley Team member Kristin LaVanway talks about the responsibility of buyers agent in a short sale.

The buyer’s agent has a fiduciary responsibility to be honest to the buyer about the risks of buying a short sale while at the same time being honest to the seller and the seller’s agent. A short sale is not just a place to put an offer while you keep shopping. The buyer needs to know the risks involved of not only the short sale not being approved, but the risk of losing their earnest money if they find another house.

NationStar short sales: What you need to know

East Valley Team member Dean Ouellette talks about some changes you need to know about if your file was recently transfered to Nationstar.

NationStar mortgage has recently taken over servicing a bunch of loans and they have also recently moved to Equator for short sale negotiations. If you had a file with another lender and it is now with NationStar you need to make sure the NEW number is what is used to open the account on Equator.

In a short sale don’t confuse a house with a home

East Valley Team member Dean Ouellette talks abouthow when you thinking of doing a short sale, do not let your emotions confuse a house and a home .

On thing I hear often is “but its my home.” I can tell you I have talked to plenty of people over the last few years who have sold there house and almost all of them have said this and I cannot think of one who was not happier 6 months after the deal was don’t.

I have shown thousands of houses to buyers and I can assure you, for every perfect house, there are a dozen more out there. You will find it. And you can turn any house into a home because a home is where you and your family make memories.