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Is it a brave new world out there, or do we need to be braver because of this new world?

September 8, 2009

Square globeIs it a brave new world out there, or do we need to be braver because of this new world?

I was told we would close this Thursday, first time home buyer, very good credit, very solid deal. All of a sudden we get calls from the loan officer, she needs more documents. She is looking for the lead disclosure (she has it), that was last week. It was missing an initial on the document from the buyer, and I never got it to sign, so I had signed it and faxed it back. All set. She lost it. Wait, no, she didn’t loose it, her assistant has it. Then the assistant lost it, on and on. They wanted it resigned today, never bothered to call and ask if we had a copy if indeed they lost it. Wait, hold on, they found it! Great!

Nope, not great. They now need the receipts for work that was done to the well and the septic, and the test results. The underwriter can not do anything without this, and now the loan won’t close until Monday. I heard from our attorneys office, the paralegal was ballistic. I never, in all the time I have known her, heard her as angry with anyone. She has documented proof all these documents have been faxed 2 times. Back and forth, back and forth. What was the issue? The water had coliform bacteria, needed a new well cap, was repaired, shocked, retested and came up fine. The receipt from the company who did it listed the specific product they used to to shock the well and the loan officer did not know what she was looking at. Nor did she bother to look at the dates of the water tests to note that the problem had been resolved. She downright misplaced the invoice from the septic repair. Wait, no, they do have that document, they now have 3 of everything!

All documents were faxed yet again, and she was told by our attorney that they will fix their mistakes and get this closed. Well, she doubts it, and takes NO responsibility with our client for making these errors. My client is not a happy camper, to say the least. He does not live close by, will have to take the train up for the closing, has a demanding work schedule and has negotiated Thursday off. There is also an issue of some pretty squirrley sellers, I won’t even go there. Very very difficult situation.
Fear
Here is the thing, I understand the “we didn’t get the documents” tactic for short sales. This is no short sale, not even close. My buyer has had to jump through more hoops for this loan than I have ever seen before. He has been inconvenienced, upset, there has been such a lack of communication between the loan officer and our attorney, and the loan officer and myself. This could be the second most sloppy loan I have ever seen. So, what is going on? Why would a bank be so clearly inefficient with a good solid loan? I am talking about Wells Fargo here. Ok, I know, they aren’t my favorite either. As a matter of fact I was alerted to them being called to Federal Court. Mark Archer blogged about this, and posted a link to this article from the New York Times. An interesting read.

I hear more and more about what should be a solid loan going south. I am afraid it is just the tip of the iceberg and I am very worried about the direction we are heading in. We have a short period of time here to get these first time home buyers off the fence, get the homes sold before the end of the first time home buyers tax credit and move on. And it isn’t just affecting the first time buyers, it is happening with all our buyers, then a chain reaction happens.

I have never felt so frustrated as I do right now. We have banks changing lending requirements midstream, loan officers that are floundering worse than we are, agents trying to do short sales without the expertise needed, lenders making the short sale process impossible, sellers behaving like it is still a sellers market (go figure that one) throw in the whole foreclosure debacle and this is like some mass nightmare!

So, is it a brave new world, or do we need to be braver because of this new world? You tell me.

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