Texas Home Loan Blog: November 2006

I recently had an appraisal come in low on a property. Loan was pretty much done. Missing appraisal and verbal verif of emloyment and it was set to close.

Than..... BAMMM!!!!  Appraisal came in over $8K short! DOH! 8/200 = 4% <== NOT a nominal amount.

I had the unfortunate task to tell the borrowers the property wasn't worth as much as they thought and that if they truly wanted it.... then they would have to come up with the difference. I informed them the dangers of 100% financing and property values. I explained to them that I haven't seen the property myself, and can't place a 'value' on it myself. But that in some markets and even in some neighborhoods that folks HAVE paid over appraised value. Reasons are numerous, like the best schools, ect. I also warned them that paying over appraised value is almost never the best course of action.

I then went on to explain to them that I would contact their realtor if they like. They said they needed to call her anyway and would take up the issue with her.... especially since she kept telling them how great of a deal they were getting on the home all along!! I told them they should expect the realtor to review the comps used by the appraiser because sometimes the MLS data can be wrong and there may be a couple more properties in the area that indeed are comps.... but missed by the appraiser because they were listed as being backed up to a golf course or the like. I told them that they do NOT need a new appraisal. That a 4% variance cannot be 'made up. (this was a $200,000 property). I told them to expect their realtor to stick up for them and re-negotiate the deal.

Mind you..... I generate my own referrals. So this client is MINE!!! Therefore, the first call is to who I am working for... my client, not the realtor in this case. I firmly believe a courtesy call to he realtor would be warranted if she was driving the business, but she had already rubbed me wrong anyway.

I get a phone call about 20 minutes later from an obviously shaken client. The realtor's only comment was: "We just need a new appraiser". Then, while talking to the client I get a call on another line.... from you guessed it.... the realtor. "Why the heck did I tell the client they didn't need a new appraisal when they OBVIOUSLY do...." "This is a beautiful house".... "Best on the block"... "this deal is fine, and doesn't need to be re-negotiated"

After listening to all of the reasons why this home should appraise, I finally relayed to the realtor that I am not a professional appraiser and have not seen the property. And that I don't really care how this gets handled.... that I can only give my clients data and let them decide for themselves.

Well... the deal DID get re-negotiated. Everybody happy. Closed 2 days later.

Think that realtor will ever get a referral from me or the buyer?

Moral of the story: 'Who's best interest should we be looking out for? Our commission checks? Or the clients transaction?'

A VERY similar deal just happend very recently that made me think about this ordeal. In this case, the realtor never blinked. She immediately got on the phone with seller's agent and made it right. <== Think THIS realtor will ever get a referral from be or the buyer? YOU BETCHYA!!!

I am a founding member of a local charity group that was adopted by  'The Coalition to Salute America's Heroes'

http://www.saluteheroestexas.org/   http://www.saluteheroes.org/ 

I recently have gotten a request that falls a little outside of our expertise.... and would like to see if anyone can help.

Our mission is to support the injured soldiers coming back from Iraq & Afganistan. Helping them and their families rebuild their lives and transition back into civilian life.

Well, we have everybody we know of in pretty good shape!!!

I just got a request from a Cub Scout group who is looking for a family to support over Christmas. I was thinking maybe a family who is struggling financially due to an extended deployment..... or some family that recently lost a loved one 'over there'

For logistical reasons... they ARE cub scouts.... we would like to find a family in the Dallas/Ft. Worth Metroplex that needs some support.

Any ideas are welcome.

Thanks and God Bless.

Do you have 2 minutes? It is only a 'Pittance of Time'

 http://www.dallasloanguy.com/misc/pittanceoftime.wmv

So... there is a real estate transaction happening.... who is running the show(who's driving the bus)?

 A good realtor knows when to let go.......

I recently had a transaction go awry.... borrower left out some pertinent information so my approval went south. I had to change loan programs at the last minute(which means that I am now off schedule and going to be late delivering the loan). The realtor in all of her wisdom scheduled the closing anyway. Uh, excuse me? But aren't I behind the wheel now? Aren't I driving the bus? I mean, how in the world can the realtor know when the closing CAN take place without asking the lender?!?!?!

Well, I get a call the day before the 'closing' (this was like the 28th of the month or so)that I didnt know anything about.... the title company was looking or docs. Needless to say, I didn't have anything for them. So we rescheduled... and since it was the end of the month.... they couldn't squeeze us in. We had to reschedule after the 1st of the next month.

Now, the realtor is upset because it just HAD TO, HAD TO, HAD TO close by the end of the month. Some kind of lame excuse about seller going out of town, yada yada yada. Funny thing. The seller was there after the first to do the closing. I suspect it had more to do with the timing of the realtor's commission check.

Now, if the realtor had shown me the professional courtesy of working WITH me on scheduling a closing, we could have delivered by the 30th or 31st. But since we rescheduled so late in the month, we had to roll it over into the next month.

This is not the first time I have gotten the "has to close by month end" story. And NOT the first time I have had a realtor schedule a closing without telling me. Actually, I am usually SHOCKED when I get a call from a realtor asking if it would be ok to set the closing date for so & so date.

Am I bashing realtors? NO!! Absolutely not. I have worked with some truly talented professional realtors who get a lot of referrals from me. But I have also worked with some pretty selfish individuals who think that the sun sets on THEIR schedule.

Which realtor are you? Are you the professional who has learned to 'let go' and trust your lender partner? Or are you still holding on to the deal with a death grip until you get your commission check?

start->control panel->add remove programs->at the top check "show updates" radio box->scroll down in the list->you will see IE7 listed, uninstall that, restart and you are on IE6

now you can go back to Mozilla ;-)

Don't get me wrong here..... I am all about upgrading to higher security. Especially when the product offers it for free.... heh

But, why on earth did Microsoft decide to move everything around? I cant find anything!!

I wish Microsoft wasnt a monopoly. I wish I had a choice, other than Apple

Prosecutor: Well, Mr Lender. I see that you do a pretty good deal of Fannie Mae backed loans.

Lender: Uh-huh

Prosecutor: We audited the Smith's credit report on their recent purchase transaction. That IS your signature on the 1003, right?

Lender: Uh-huh

Prosecutor: Did you know that they didn't pay their American Express bill..... to the tune of $19,000?

Lender: Uh-huh

Prosecutor: Did you think this information was something material enough that you should have disclosed it to Fannie Mae, the ultimate buyer of this defaulted mortgage?

Lender: Uh-not really. I was told that it was 'inaccurate'

Prosecutor: Inaccurate??!!?!

Lender: Yeah, the charge-off date was off by 1 month or they had the balance wrong by a few dollars. So the credit repair dude said it has to be deleted.

Prosecutor: Do you understand what Mortgage Fraud is?

Lender: Uh-like, I think so.....

Prosecutor: Do you, uh-like think, that the credit report you presented to Fannie Mae was a fair and accurate reflection of the Smith's credit history.

Lender: Uh-like, I guess not.

Prosecutor: The prosecution rests, your honor.

Food for thought.... feel free to discuss.

Realtors take note as well.