A Tale Of Two Transactions in Arvada and Westminster, CO!
Westminster, CO- Things that go "bump" in the night, can make your hair fall out! Or in my case, not shave until these transactions get CLOSED!! Regardless, of the preparation and planning, sometimes there are elements that are just OUT of your ability to control. Please, let me share!!It all started, with a new listing in Westminster with some of my past clients, actually 14 yrs ago I sold their home and assisted them in buying this current property!! We placed the home on the market in August, and after taking the appropriate adjustments, we were able to procure a buyer in early November. We are now under contract at $226,500. Of course, we need to procure a new home for my sellers so this transaction had to have a contingency built in! Yeah, we were able to go under contract 2 weeks later and NOW, we are on our way to a closing around 12/27/12. Under contract at $310,000!
The Lender Fun Now Begins!! My sellers are working all the necessary docs into the lender of their choice, and after about 2 days of reviewing the docs, again ... the lender has decided they made an error in income/debt ratios and the sellers can only qualify for $225,000 loan!! YIKES!! We just went under contract for a $310,000 property with 5% down!!
Yes, how in the world did we let this happen!!! Someone did NOT review the credit report with the right kind of scrutiny as we come to expect from a LARGE Bank!! This is just the start of a the strange process with many lenders to obtain 2 approved loans for both parties!
My Sellers did end up with a Credit Union lender that after reviewing everything, decided they could qualify for $315,000, so all is good!! WE THINK! Now, as we got closer to the original closing date, the buyer on my client's property wants to try and close before Christmas... not a bad noble idea.
So, a week before our new closing date on 12/21, the buyer was denied their loan, due to this buyer being on TITLE to a foreclosed property, last May! Not on the note or the deed of trust, she was quit claimed on title after this loan was produced on an earlier date. The Buyer's broker has NOW moved them to a Lender of his choice, and all is good!! YEAH!!
We hope to close NOW by 12/27, the original agreed upon closing date! NOT SO SOON, oh LENDER challenged!! Since, my clients have gone with a CU, they use an MI company underwriter to bless the loan, and they are located in TEXAS. Make another long part of this story shorter... they rejected the appraisal, (now, mind you... it came in at contract value $310,000), and SO NOW, this CU lender is scrambling to use another MI company that DOES NOT need to bless the loan approval, and we will use their preferred investor underwriter!! OH, let me mention, they are located in TEXAS, as well!!
Why prolong this story... YES, they denied the loan because they did not like the appraisal, even after requesting the appraiser use more dated comps in his appraisal. DID THE APPRAISER DO THAT? NO, he took the lazy way out and just did an amendment to the appraisal!
OFF to the new lender search... so, we decided to involve the lender working the buyer on their home, and NOW we put pressure on that lender to perform!! Oh, the new appraisal came back at $313,000. They were happy!!
We are ALL holding our breath, since BOTH loans were approved this last week, and we have scheduled closings for this coming Tuesday!
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Thanks for reading this, Dan Hopper.
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Dan Hopper specializes in assisting home owners to avoid Foreclosure in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.
Thank you for reading, "A Tale Of Two Transactions in Arvada and Westminster, CO!
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