Working with lenders can be very difficult. We recently closed a short sale where the buyer was getting a loan through the Veterans Administration and working with a mortgage broker. This was also a short sale, so not only were we working with the buyer’s mortgage broker and lender, we were also working with the seller’s lender.
Usually the seller’s, or short sale, lender is difficult to deal with. In this instance, the short sale approval process went very smoothly. We were able to get a written short sale approval within a month and a half. However, we did not have such an easy time with the buyer’s mortgage broker and lender.
About six weeks ago, the buyers lender was ready to go and sent us over closing instructions. We prepared the settlement statement, got it approved by both lenders and were ready to go. But the buyers loan package never showed up. Why? We don’t know, and to the best of my determination, the mortgage broker jumped the gun and sent the instructions without the lender’s blessing.
About two weeks ago, after having to obtain several extensions from the short sale lender, we were ready for round two. The instructions sent, hud approved, and the closing package was sent from the mortgage broker. All signatures were obtained in a timely manner and the closing was ready to be concluded. But the lender would not give a clear to close and would not fund the deal! In twenty years of doing closings, I have never had this experience.
One week ago, we attempted round three, and it was finally a success. Hours and hours were unecessarily put into this file because the mortgage broker and lender were not properly communicating. Frustrations and short tempers were exhibited from all parties. One thing that is often overlooked in my business is communciation. And good communciation can make the differnce between doing a closing once and three times.