Home Buying in Chicago>Question Details

Marco Mallard, Real Estate Pro in Evergreen Park, IL

This mortgage officer is SO fired. How can we find out what's REALLY going on with a loan when the loan officer is non-responsive?

Asked by Marco Mallard, Evergreen Park, IL Fri Dec 28, 2012

I have a client who got a loan with a broker at Inland Bank. This loan was supposed to close in mid November, I figured late November as a stretch, but it's now almost January and we haven't closed and haven't gotten ANY clear understanding as to why it's taking so long, other than, 'They're backed up; everyone's loan is taking a long time.' I just don't believe it. I'm convinced that the mortgage officer either, 1) over promised and couldn't deliver and is struggling to get it done, 2) we're being marginalized/red-lined based on it's south side zip code, 3) someone is sabotaging the deal for whatever reason.

I just don't get it. This woman's reason for moving was to get more house for her new child, this lady has gone into LABOR and delivered already, while we're still waiting on this loan to close. Has any one else had these problems? Any insight or input what-so-ever?

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Lots of excellent responses and information already given. You need to cultivate at least two relationships with lenders so you have "go to" people for your clients. Not everyone will take your suggestion for a lender, but having someone you can go to when this type of situation occurs gives you a reliable fall back and a person who can look at the borrower's file and tell you quickly if it is the process or their situation that is holding things up.
1 vote Thank Flag Link Fri Dec 28, 2012
Actually this is eerily similar to a situation i had earlier this year on my own house that i was refinancing. I started the refi process in early February. Had the appraisal done a week later and the value and all numbers looked great. Now my first mistake was doing this through a mortgage broker who than submitted the loan to Fifth Third for underwriting. For the next six weeks i was getting the "everyone is refi'ng right now so underwriting is taking long everywhere". Early April she stopped taking my calls or emails...but prob sent me 1 or 2 msg giving me the same round around. Early May, I had enough and took my business elsewhere and closed in 3 weeks and never heard back from the original mortgage broker. My advice would be to take your business elsewhere asap. If you already paid for an appraisal take that to another lender and see if they will honor it and just move on. If feel your frustrations buddy
1 vote Thank Flag Link Fri Dec 28, 2012
thanks, luke.
Flag Fri Dec 28, 2012
The only way to get answers is if you speak with managers and their managers. After working at a major bank for several years I realized that no one cares until the big guy has to waste time and answer your questions. Be persistent and make sure you have your client start an application with a new lender ASAP. Good luck!

Jorge Vega
Real Estate Broker
Newman Realty Group
1 vote Thank Flag Link Fri Dec 28, 2012
I can relate. I'm finally (or should I say hopefully) closing a deal tomorrow that should have been closed weeks ago. The mortgage broker blames everyone else, including me (the listing agent) for the delays. It has been ridiculous. I think you're dead on with saying that they've over promised. In my situation, we know that the lender simply hasn't gotten the info needed in a timely manner and then scrambles to fill in the holes and blanks. It has been one of the most frustrating transactions I've ever worked on, and I feel very sorry for both the buyer and the seller, as they've been the ones caught in the middle. I hope that your client can light a fire under the lender to get this done before her 2nd baby is born.... Best of luck.
0 votes Thank Flag Link Sun Dec 30, 2012
Talk to an attorney. (Not the one being used for the transaction).
0 votes Thank Flag Link Sun Dec 30, 2012
I agree with most of the answers already given here, you should move on to some other loan officer.
0 votes Thank Flag Link Sat Dec 29, 2012
Hi Marco,

Ask your client to reach out to the lender and give them an ultimatum. If that doesn't work, move on to another lender.

That said, I agree with one other response here which is if your client is on maternity leave that may be a deal breaker.

Good luck!
0 votes Thank Flag Link Fri Dec 28, 2012

Act quick and get the docs over to another mortgage banker...... it's complete BS and I dealt with something similar earlier this year so I know how upset you must be. I cut the deal, got it over to another mortgage banker and it closed 3 weeks later.

Sohail A. Salahuddin | Founder

Innovative Property Consultants Group | Sales and Leasing


Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Extraordinary Service For Extraordinary Lives"
0 votes Thank Flag Link Fri Dec 28, 2012
Sounds like they are lying. Just switch the loan officers, its that easy.
0 votes Thank Flag Link Fri Dec 28, 2012
I highly recommend advising your client to move on and consult with another loan officer; too many red flags based on your summary. Tracy Flanagan with Wintrust Mortgage is extrememly knowledgable and great to work with! We'd be able to help you and your client get this transaction closed in January or let you know upfront if there are potential issues with your client obtaining financing for this property.
Web Reference: http://wintrustmortgage.com
0 votes Thank Flag Link Fri Dec 28, 2012
Nothing in your question about when the actual application was completed, that is everything handed over to the loan officer. Nine times out of ten when I have a long drawn out processing period the buyer/borrower is slow sending the support documents or sends incomplete documentation or the wrong thing.

Having said that, some lenders are very slow, a couple in my area ar taking 60 to 90 days. As others have indicated, call the branch manager, if the LO is the branch manager ask for the name and number of who he reports to, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Dec 28, 2012
No, you're right, I didn't mention that. All documents were submitted in a timely fashion.
Flag Fri Dec 28, 2012
yes I agree with others to avoid issues in the future develop a relationship with a loan officer and transactions will progress smoother for you.

My last testimonial on a short sale is as follows:

"Thank you, we greatly appreciate all your help in not only finding our home but in helping us get through the crazy short sale process. Not only have you proven yourself to me multiple times now by finding the perfect properties but you do it quickly. I can't imagine anyone else handling my real estate needs as you have and I know that no one else could handle my ranting and venting like you did for this short sale. Thanks Jim "
0 votes Thank Flag Link Fri Dec 28, 2012
Contact their manager, if no one will return calls, go to the office, sit in the waiting area and wait until they see you.
0 votes Thank Flag Link Fri Dec 28, 2012

My advice... Fire the loan officer and move to someone with real experience. You should know if you are good to go with a loan in a very short time.

What you have described should have never happened and just because someone is out on maternity leave, where is the back up?

Contact Mary Laurent with Guaranteed Rate 773-516-6859. It is free. You may have to send your documents again. But she will get the job done!

Best of Luck and Happy Holidays.

Manuel Brown, Broker
iMove Chicago
0 votes Thank Flag Link Fri Dec 28, 2012
No, the mortgage officer is not pregnant the buyer is.
Flag Fri Dec 28, 2012
If you are not getting the proper service, get a second opinion and perhaps switch lenders.

I would be happy to outline your options for you.
Web Reference: http://www.StellarRates.com
0 votes Thank Flag Link Fri Dec 28, 2012
To avoid problems use Bernard Duganzik at 847 491 1855 for future loans
0 votes Thank Flag Link Fri Dec 28, 2012
Contact both the Loan Officer and his/her manager and ask for a clear explanation of what the reason for the delay is and what the Plan of Action is moving forward. Maybe your client does not qualify anymore or maybe the building has so many issues that they cannot get financing for it. If you are not happy with the response go to another lender.
0 votes Thank Flag Link Fri Dec 28, 2012
The home was a gut rehab and the buyer went FHA. The seller was responsible and jumped up to fix any repairs, from the FHA inspection and the standard home inspection. We're already past that. Buyer was responsible and delivered every document the mortgage officer asked for promptly. Her credit score is decent and her Mom's got her back, in savings and a higher score.
Flag Fri Dec 28, 2012
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