Posted by Linda Simms on July 24, 2003 at 09:19:53:
My mistake. It is Ed Garcia. He is the one that should have an interesting insight on Mortgage Lender problems.
I want to VENT ( Mortgage Brokers) - Posted by Ron
Posted by Ron on July 23, 2003 at 17:33:30:
Hello out there. I am a reasonbly experienced RE Investor who is at the tail end of the most horrible experience of my investing life. I have been dealing with a large Mortgage Broker to fund a 3 unit. The woman told me yes, I am approved for a 90% all day long. My mid scores are 653, I have good liquidity and all of my properties are cashflowing. Then the problems began. She left the company, never told me, causing at least a 2 week delay. When I finally contacted her, she said no sweat, she is at a diff broker but she will see my file through till the end. Lies. Another 10 days went by no answer. I finally called , for the umpteenth time the main number for the Mortgage Broker and got the owner. Guess What? My file was never touched! I then had to resubmit EVERYTHING for a full doc loan. another week went by, a million phone calls later I find out that their investor will do an 80 %LTV. Not good enough, and by now the seller is furious ( this is a great cashflow deal) I called the owner again and he said that he would submit to yet another lender to do the 90% LTV. More phone calls, more voice mail, more stonewalling, more “I’ll get back to you in 30 minutes” more BS, basically raising my blood pressure to death like levels. As I write, I have yet to hear from him. I am venting here because I am trying , REALLY TRYING to be calm about this, but the excuse/fact that there is a lot of people in the backlog doesnt cut it. Sometimes I wish ( not really, just venting again!) that the rates would go up high enough to drive these fly by nights back to the used car lots where they belong. This underscores the importance of FINANCING in REI. I am sure that I have lost this deal due to the stupidity, arrogance and plain unprofessionalism of people in this industry.A little moral support will help!
Disgusted with the mortgage industry in general
RON
Re: I want to VENT ( Mortgage Brokers) - Posted by Jason Lewis
Posted by Jason Lewis on July 24, 2003 at 18:52:54:
Ron You need to run as fast as you can away from that broker any broker worth a penny would not leave you hanging in the wind like she has his a test call two brokers that a realtor recommends and let them both know you are talking to the other you will get the best service of you life if they know they have competion and also the lowest closing cost and interest rates just like shopping for a car let the broker know what the other one says and they will beat it. good luck also don’t let them charge yeild spread that is money you pay not the lender as they tell you
As I see it… - Posted by BrokerScott (Mich)
Posted by BrokerScott (Mich) on July 24, 2003 at 10:08:57:
When you didn’t hear from MB for two weeks and then found out she had left without telling you, that should have been the moment you ceased to do any deals with her for now and forever amen. I know hindsight is 20/20 but the second a supposed professional of any stripe, stops acting in that professional manner, it is time to stop doing business with them. I fired my lawyer of 15 years this year. Hope things work out for you and BTW if the seller is raising a fit, in many states (probably all)you have rights to file suit for “specific performance” even if the deal expires un fufilled. Sugest you consult your attorney. Be firm but VERY polite with the seller, that you are doing your very best to correct problems that were not of your making. Best, Scott
put your attorney to work - Posted by rm
Posted by rm on July 23, 2003 at 21:05:11:
and send a terse letter via FEDEX.
Also, might be a good story for your local Fox newscast- ties in well with the “sudden increase in mortgage rates.”
Re: I want to VENT ( Mortgage Brokers) - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on July 23, 2003 at 19:44:32:
Why would we used car dealers want these kind of people? I’ve got news for you, if I don’t sell and get my people financed, I don’t eat. Why not try a local bank with a commercial department?
Good Luck,
Shawn(OH)
Re: I want to VENT ( Mortgage Brokers)- Ed Copp - Posted by Linda Simms
Posted by Linda Simms on July 23, 2003 at 18:47:05:
It sounds like you have a good case against the fly by nights,… I would like to hear what Ed Copp has to say about this
It’s all about control . . . - Posted by DaveD(WI)
Posted by DaveD(WI) on July 23, 2003 at 18:20:03:
. . . and you gave it away the minute you hung up after you heard about your so-called pre-approval. Getting paid (or funded, depending upon what side of the transaction you are on) is way too important to leave it in someone else’s hands.
Your job is daily contact to move these kinds of things forward. If you don’t, they can fall apart real fast. Get it?
-Dave
Re: I want to VENT ( Mortgage Brokers) - Posted by Rich San Diego
Posted by Rich San Diego on July 23, 2003 at 18:04:02:
Say Ron- Go to Grapevine - Broker Universe
and post the same comment there, and also put where you are located, with contact info and you will get help from PROFESSIONALS quickly. They will let you know if they can do it for you. Good luck- Rich
Re: I want to VENT ( Mortgage Brokers)- Ed Copp - Posted by Sharif
Posted by Sharif on July 23, 2003 at 22:33:36:
I thought Ed only came in to defend crappy REALTORS, not mortgage brokers.
Re: It’s all about control . . . - Posted by Rob Ricker
Posted by Rob Ricker on July 24, 2003 at 23:21:33:
I’m a mortgage broker. If all my clients called me everyday it would actually slow down the loan process because I’d be spending too much time saying the same thing over and over I.E. “it’s in underwriting” “nothing has changed yet” etc. etc. Calling every week is more practical. It gives your broker actual time to work on the loan, but lets him know that you’re checking in as well. It all boils down to working with someone that you can trust that will do the work if you call them AND do the work when you don’t.
Re: It’s all about control . . . - Posted by Tim
Posted by Tim on July 24, 2003 at 06:35:58:
So, what do you suggest? How exactly do you control other people & keep them from feeding you a line of crap? It has been my experience that calling every day leads to daily lies instead of weekly ones, which is why I try to only do business with those people I know and trust. However, when you are selling through the MLS, how do you keep the buyer from using a bank/broker you don’t approve of or are not familiar with? I know I could only accept contracts from buyers willing to use banks etc. that I specify, but won’t that limit the potential market?
Re: I want to VENT ( Mortgage Brokers)- Ed Copp - Posted by Linda Simms
Posted by Linda Simms on July 24, 2003 at 06:45:43:
No, Ed is a highly talented mortgage broker. He may also be a realtor, but we won’t hold that against him. He has been known to specialize and give great seminars on how to deal with Mortgage Brokers or Lending Institutions. I am sure he would have some excellent advice on what went wrong and maybe how it could have been prevented.
Re: It’s all about control . . . - Posted by DaveD(WI)
Posted by DaveD(WI) on July 25, 2003 at 10:32:26:
Rob, I rather doubt you have anything to worry about since most folks simply don’t follow up. The polite, but squeaky wheel still gets the grease. It may annoy the mortgage guys, but until they start telling me they don’t need my business I will call very regularly. They know I bring them deals they can fund.
-Dave
Re: It’s all about control . . . - Posted by Nate(DC)
Posted by Nate(DC) on July 24, 2003 at 10:46:31:
I can, and will, reject an offer if the financing looks sketchy. You, as the seller, have the right to accept or reject any offer, and you can reject an offer because you do not think the financing is likely to come through.
How about this, “Mr. Buyer, I like your offer, but I have spoken to your mortgage broker and frankly he doesn’t have a clue. Here’s a list of several people that I know can get the job done. If you will call one of them and get this loan done, we can accept your offer.”
NT
Re: It’s all about control . . . - Posted by DaveD(WI)
Posted by DaveD(WI) on July 24, 2003 at 08:26:29:
Tim, good point about the daily lies instead of weekly ones. Take that thought a little further. Essential to sticking around in business is to develop your BS meter. When someone starts feeding it you need to recognize it early. Like in a couple days (or minutes) instead of a couple weeks. Your own integrety is on the line, and it’s too valuable to leave in someone else’s hands.
Remember, the post was about Ron performing on a deal. He is starting to look like dog p**p in the seller’s eyes. So the lender hosed him. The seller doesn’t care! Everything you do affects your reputation either positively or negatively. Ron gripes about the lender, but it was his job to whack him early and move on double-quick to his plan B. Oh, you say he didn’t have one? Well, that’s the subject matter for another post, isn’t it?
BTW, your point about MLS when you are selling was slightly off-topic, as the thread was about him buying a multi-family. To be sure, you have much less control when selling retail through normal brokerage activities. I feel your pain.
But ask yourself one question. If I am selling, and the transaction falls apart because of bogus financing efforts, who stands to get hurt the most? If the answer is me, then bet I will infuse myself into being all over the lender, title company, appraiser, broker, co-broker, utility company, you name it, to get it closed. I like getting paid.
All the best. . .
Dave
You got your Ed’s mixed up…? - Posted by JT-IN
Posted by JT-IN on July 24, 2003 at 07:11:58:
Linda:
Are you sure you are speaking of Ed Copp, and not Ed Garcia…? Ed Garcia is a mtg broker and gives seminars… but as far as I have ever heard from Ed Copp, he is a RE broker… in SE Ohio. NO doubt, a very good one, too.
Could it be that there is another dimension to Ed Copp that we just haven’t heard about here on cre… ??? LOL
Re: It’s all about control . . . - Posted by Rob Ricker
Posted by Rob Ricker on July 25, 2003 at 10:57:16:
You make some good points
The squeky wheel does get the grease (sometimes unfortunately)
And yes, if a guy was sending me deals on a regular basis, he could call me every hour if he wanted to.