I thank God that I am affiliated with REMAX International, REMAX of California and Hawaii, and REMAX of Santa Clarita and Valencia!

Real Estate Lending is not what it used to be – which is a Good Thing.  It would seem that enough “Rope” was given and some of the lending companies “hung themselves” and their clients as well.

It will be a long while before full recovery is in place.  But we have been here for about two years and I think I can see some Sunshine Breaking Through!

The Lending Arm of Real Estate is a necessary part for Every Realtor and Real Estate agent to understand.  How Loans are Originated, How the Lenders get Paid, the Rebate issue, Approval Conditions, pre, post, Funding Conditions, FHA Loans – Conventional 20% down, Stated, 203K FHA Repair Loans, OMG (I guess my head injury was not that bad..  🙂  )

Having Said that about Loans we had an issue arise in the not so recent past, but a good point it will make, and demonstrate why the Paris911 Team at REMAX of Valencia is a superior source for Real Estate Representation.

Signing Loan Documents – is a process that takes place quite a ways into the Real Estate Process of Escrow.  Usually this is after the “point of no return”, meaning that contingencies have been removed by the buyer and if they change their mind, they can lose their deposit.  (not in every case – FHA product Clients – don’t lose their deposit..  (that is another story)

Also – the “notice” has been given at this point if the clients are Renters somewhere – usually when notice is given, a bridge gets burned – because the Landlord has to find another Renter for his investment property.

So you go to the Lenders office, Escrow, somewhere to go over the numbers on the Loan Documents and to Sign.  Usually this comes off without a hitch and you are signing what you were promised on the Good Faith Estimate.  (Ah Yes – the GFE or Good Faith Estimate, a necessary part of Lending and if you don’t get one of these little darlings – you are hanging your “Buttox” way out – another Story – 877–977–REMAX if you would like mer to explain further)

In this particular case, we were in escrow, I was with my clients and the Good Faith Estimate did not match the numbers on the loan documents that our clients were signing.  Now, I understand that rates fluxuate, that there are some unforeseen expenses – but it is up to the lender to keep the client posted if there are changes to their loan equation.

In this case, this was a lender that did not have their origination from REMAX’s Paris911 Team and was a “family friend”.  Some Friend.

The Payments went up over $300.00 a month from the GFE and Rates had Dropped Two Weeks prior to this day of signing loan documents.

So something was not right.  Oh, one last thing – there was also an $800 dollar charge for FED EX.  At this point, I was racking my brain trying to remember if anything was FED-EX’d.  We average 3–7 escrows a week, which is a blessing, but we don’t push any harder because with that balance, our Customer Service is on Target and our Representation does not slip.  We have some of the best Real Estate Representation systems in place to take GREAT CARE of our Clients – but I am sure I would have remembered if I was FED-EX’d something on a file – especially $800 dollars worth.

I called escrow, “did you receive anything by FED-EX on File Number __________?” – No, our Escrow Officer Responded. 

I called the Lender – he was very defensive.  After confronted – he told me to not worry about that FEE…  Before going too much into it with him further – I also asked why the payments jumped?  He said he was going to need to look at the file.  With no justification, or reason, he told me that that is what it is… 

I asked a few more questions and looked at my clients and asked what they wanted to do (We would always much rather Lose the “Deal” and Keep the Client – Client Centered with our Representation Model we are!!!)  They did not sign, One of the Lenders on our Team were able to beat the original payment by $200.00 a month and we had new loan documents within 7 days.  Not BAD!!!

Make sure you are working with an agent that can Cover your Assets.