Home Buying in Los Angeles>Question Details

Alinill, Home Buyer in Los Angeles, CA

Lender is taking a very long time. I have told various times that my loan is with under writing. Then, that my loan would be approved soon.

Asked by Alinill, Los Angeles, CA Sun Feb 20, 2011

Then I was told the under writer was out ill. On Friday, branch manger stated that the underwriter was reviewing my loan (this was at 1:00pm and it would be ready by 4:00pm). My husband drove to the branch, where he heard from the under writer herself, she had not yet looked at my file and was not going to get to it until 4:00pm.

I may soon fall out of Escrow and the Lender knows this. I spoke to Corporate for that lender, but I'm not sure that I heard the urgency in their voice. I was further told that my file was in underwriting, but that it did not get assigned to an under writer until "a half hour ago."

I am concerned what falling out of Escrow will do. Can I sue the Lender if I lose this house? They have me locked at 4.5%. I have very good credit and other Lenders are quoting me at 4.7%. So, I stuck with them, through every "hold on" and "well get back to you", the 'they not answering their phones".

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Answers

13
Keep the pressure on your lender and have our agent contact the Lender. Make sure he is aggressively & tactically addressing the issues.

Hampton & Associates
Maurice Hampton, MPA
Hampton@kw.com
Direct 310.591.0007 (text avail)
Fax 310.305.8433
Lic No. 01348678
Keller Williams
4644 Admiralty Way
Marina Del Rey, Ca 90292
Web Reference: http://www.GetHampton.com
0 votes Thank Flag Link Fri Feb 25, 2011
Hello. Not sure what type of transaction this is, or how long you have been in escrow. "A long time" is that 30 days, 45 days? There are a number of factors that go into getting a loan funded, and not all of it has to do with you, the borrower... the conditions for the funding of the loan may also require some things regarding the property, etc... is this a condo, reo, shortsale... these are differences that can have an effect on the overall funding...

However, if you feel you are running out of time, talk to the seller. It is imperative you communicate. Closings, especially in this market do not always close on time and most educated sellers will understand this... you just need to let them know. Also, it would help to get a quick letter or something from your lenders manager or the underwritter, explaining the situation and also send a copy to the seller so that they know what is going on. This could help a lot in the case you need to request a closing extension.
Good Luck.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Tue Feb 22, 2011
In your opinion what's a "very long time?" What did they state was the anticipated closing date on your lloan when you gave them your application?

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Mon Feb 21, 2011
Hi Alinill:

Sorry to hear that you are encountering a difficult transaction. It is very important that you have a good and dependable lender team. At this time, I would focus on getting another back up loan officer and negotiate with the listing agent to give you more time and try to save this transaction and your deposit. Most sellers do not want to take another buyer and start the waiting process again if you are showing reasonable problem solving.

It is very difficult to make the lender be responsible for their delay. (626) 715-0992
0 votes Thank Flag Link Sun Feb 20, 2011
Alinill,
Sometimes, sellers are willing to entend a closing date with or without a per diem, (fee per day for not closing on time) with a valid reason.
First, you got to find out who's representing you in this transaction, (by yourself, by a buyer's agent, by an attorney, or by the same listing agent.) Whoever is representing you must be in front line of this transaction and getting the pressure. If you're dealing with a loan agent, that loan agent should be accountable for closing the loan on time, too. Second, you must have all agreements in writing and signed by all parties involved, not by words of mouth. You may trust your agent, but you must verify in writing.
Best wishes.
0 votes Thank Flag Link Sun Feb 20, 2011
Hi Alinill,

The sellers probably do not want to start this process over with a new buyer or at the very least they would prefer not to.

Have the sellers sent you a demand to close? I am sure your agent is communicating to the sellers that you are doing your very best to get the loan funded but somethings are out of your hands. Your agent can request an extension if it's necessary and can explain the details of the delay.

It's another issue altogether if there is a per diem that you agreed to as the buyer (ex: each day the buyer has a delay from closing escrow within agreed date, an amount is owed to the seller) or if your loan contingency period has passed. Just make sure your agent is on top of it.

As far as your lender is concerned, be as nice as you can when interacting with them no matter how irritated you are with them. You're locked at at pretty good rate in my opnion. Rates have gone up and I'm not so sure you can get the same rate if you started all over.

Even the best of underwriters can get delayed for one reason or another-- which may not even be related to your file! I hope you close soon!!!!

Good luck to you! Hope this is helpful!

Louri Groves, REALTOR
Prudential California Realty
0 votes Thank Flag Link Sun Feb 20, 2011
I am sure your realtor is assuring the Seller that you are doing everything in your control to get this closed If the Lender has made a clear error they may able to help you with the fees but if it is just a little slow you may have to hang on a little longer.
0 votes Thank Flag Link Sun Feb 20, 2011
Pretty typical when rates go up. It just goes to prove that the cheapest lender isn't always the best lender. If you lose the house you love, .2 points means nothing. I'd suggest getting a referral for an excellent lender you can develop a relationship with. Have your agent ask for an extension of time for the loan contingency and you may want to get your stuff to another lender asap.
0 votes Thank Flag Link Sun Feb 20, 2011
Hello~ I am a lender and am not sure who your working with but it sounds like there is reason for concern. I would be happy to help as a consultant if that would help you. Feel free to call me so I could ask you a few questions that would help me help you.

Vince Lombardi
Senior Loan Officer
In-house Lending
310.489.5608
0 votes Thank Flag Link Sun Feb 20, 2011
Keep the pressure on your lender because starting over is not going to be any faster. Be a squeaky wheel, but do it nicely. The last thing you want to do is piss off the underwriter! I'd also have your agent communicate with the listing agent and request an extension of time. This is pretty normal stuff these days with loans taking longer than expected because lenders are scrutinizing files much more closely and with all the new regulations that have come out in the past year there are additional hoops to jump through. Good Luck!
0 votes Thank Flag Link Sun Feb 20, 2011
Alinill first of all why hasn't your agent done an extension of time? Has your 17 contigency period for loan approval passed? Is this your lender or a lender your agent referred you too? Most lenders are taking up to 72 hours to review a file,,24 hours for docs and then 24 hours after you get docs, sign them and they are returned to the lender. It is unfortunate that your agent is not educating as to how long it could take. Also calling calling calling is NOT a good thing to do. Eventhough they are working for you if you piss them off your loan will sit on bottom..Make your agent do their job...I educate all my clients as I have been on both sides lending and REALTOR..Good luck..but make your agent do there job..Thats why we get the big bucks...
0 votes Thank Flag Link Sun Feb 20, 2011
Keep the pressure on. Call every day. Maybe twice-a-day. Have your agent calling too, maybe your escrow company (if they will). Or for 2/10th of a point, you should put in an application with another lender. Nothing like the fire of "whichever lender completes the approval first gets my business."
0 votes Thank Flag Link Sun Feb 20, 2011
If you change the file you will loss you time in order close on the property.

Normal "stuff " happens everyday.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sun Feb 20, 2011
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