North Country Mortgages

I wrote a blog yesterday (http://activerain.com/blogsview/287283/Do-you-want-to) about a loan that I've completed that the sellers will not close on. I spoke to the seller's attorney yesterday after I wrote the blog to find out what is going on.

He told me that he really doesn't know. He said that the seller came into his office in the morning and kept going around in circles about why he could not close on the deal. His attorney told me that he was not making any sense. He says that the guy is living in an upstairs apartment in the garage and cannot move his stuff out till Jan.15th. I proposed that a short term lease be drawn up.

The seller's attorney advised me that "if I were you, I wouldn't waste any more time on this." This to me is unbelievable.

This is pretty disappointing. There really were no indications that I'd run into issues on this loan. The buyer is highly qualified. The sellers side came to me in a rush like this is something that needed to be done ASAP! I did my job and now unless this seller gets his act together my client is going to walk away from this dealm, the listing agent is going to lose the sale, and the seller will not get a better price than he has right now.

If I can offer any advice to any potential buyers out there I'd say DO NOT PROCEED WITHOUT A BUYERS AGENT!! A buyers agent will negoiate the contract and make sure that there are provisions in place to penalize a seller who does not comply with the terms of a contract.

I did not realize until recently just how important it is to go to a buyers agent for representation. A listing agent is representing the sellers interests, a buyers agent represents the buyers interests.

In this case I believe that if a buyers agent were involved that something could be done.

I really think that threre should be some sort of legal ramification for the seller who is not complying with the terms of the contract.

Is there anything that can be done legally to force the seller to adhere to the terms of the contract? Or is there anything that can be done legally to penalize the seller for not complying with the terms of the contract?

Any advice on what can be done will be greatly appreciated. I'd like to hear from any of you who may have been in a similiar situation and what you did about it. Thanks!!

I wrote a blog a while back that can be found here http://activerain.com/blogsview/234185/Did-I-do-something. Well this person came back to me for financing after the deal fell through with the other lender who was dishonest with my client. My client came back to me and he said that "he should've never left me in the first place". He was crunched for time when he came back to me and he told me what his time constraints were. He was not sure whether or not I could do it for him and he wanted to know for sure before making a firm decision to do business with me. I completely understand why he'd want to make sure after being freshly burned.

When he came back to do business with me it took me a total of 13 days from start to finish to obtain the clear to close. 13 days on a purchase transaction is fast by anyones standards. The fastest loan that I have ever done before this one was 9 days and that was on a refinance. Purchases typically take a bit longer because of all of the details that are involved. It is much more difficult to transfer property to someone than it is to redefine the terms of a loan on a property that someone already owns.

I was under the gun from the sellers side. The listing agent insisted that I needed to have the loan finished and ready to close by a certain date. He called me daily for status updates. I finished well before I needed to. Now that the loan is finished and has been since last week the loan is just sitting stagnant waiting to close. The sellers side is holding things up.

There was a contingency in the contract that the seller was to complete a bunch of work prior to closing. I was told by the listing agent a couple of weeks ago that all of the work on the home was completely finished and that they were waiting on me so that they could schedule this deal to close. I had just gotten the file so I put the pedal down and got it done by the proposed deadline.

Last week I got the CTC and tried to get it scheduled only to find out that the seller did not complete all of the work that he said he had. The upstairs floors were not varnished and the walls were not painted as it stated in the contract that they would be.

My client went for the final walk through this last Sunday to discover that despite what the listing agent had been saying not all of the work had been done. Initially my client was going to ask for a price break of half of the estimated cost of completion. The seller got into a small car accident this morning on his way to meet with his attorney to discuss the price break. The entire credit would be under $1000.00. After the accident the sellers attorney sent a letter to the buyers attorney stating that because the seller sustained minor injuries he will not be able to get into the house to complete the unfinished work and would like an extention. He would like to extend our closing date out to January 15th.

Several problems exist with this proposed extension. I guess the biggest problem is that after going through all of this my client has said that he will take the house as is without any additional credits so the seller does not need to do anything to the house except get his stuff out of there. My client said that he will have the work completed himself, so the seller asking for an extension so that he can finish the work does not make any sense.

Worse than that is that I used a 30 day rate lock because that is where I could get the best pricing and still realistically get the deal closed in time. Now the rate lock is expiring on the 8th of Dec. and will cost thousands of dollars to extend the rate lock till the 15th of January.

My client is willing to close "as is" on the property and the sellers are bucking... does this make sense to any of you? I mean this guy did put his house on the market ... That does generally mean that the person wants to sell their house ...right?

Now I am trying to get this closed right now. I am frantically calling the attorney's to put some pressure on them to set this thing to close. My client has told me that he will not wait until the 15th of January, he said that he will not wait past the time that my rate lock expires. He said that he is so fed up with the listing agent and the seller that if they will not set a closing date that he will just walk from the deal ...I don't blame him, there are plenty of homes on the market right now, no one should have to deal with this kind of ridiculous behavior from the seller's side of things. I just hope that if he walks from the deal that he will go through me for his financing on the next one. But more than that I just hope that this seller can get himself together and get this wrapped up.

I had a great Thanksgiving weekend. I spent my Thanksgiving in Mountain View, NY which is one of the coldest places in this country. Cold but very beautiful. I was planning on taking a bunch of pictures and uploading them to my blog, but I did not get that many. I will add the ones that I did get to another post.

The landscape is absolutely beautiful. There was about 2 feet of snow outside my mothers cabin and all of the trees in the back were coated in ice. There are quite a few properties for sale on the main dirt road. Each property has its own drive and is enclosed in trees.

There is one that I really like that is being promoted through and listed by Marshall Realty at 7 Woodlane in Mountain View, NY (also called Owles Head/911 addresses get tricky in this area). The MLS number for this home is 128721. I love this home and I would buy it myself if I could live in that area. I love to visit but I could not see myself living in such a remote location. I recomend this area however if you love the peace and solitude that is a part of this wonderful little community.

Another great thing about the area is that people are so incredibly friendly. My mother has noticed quite a different attitude from what she is used to. She says that where she lived before no one would ever help her with anything. Here her neighbors have all already introduced themselves and they are very helpful. While I was there over the weekend the piping on the woodstove slipped down a little bit because it was newly installed and there were a dozen children or so jumping in every direction. A small leak opened in the piping and a little smoke began leaking out. My mothers neighbor was visiting at the time and noticed the leak. He went home, got his tools, and came over and fixed the problem. My mother naturally asked him how much she owed him. She is not used to people helping each other just because. His response to the question was "nothing, we're neighbors. We need to take care of each other up here".

I am very happy for my parents. They have lived a difficult life and they definately deserve to finish it out in comfort. This post isn't really about real estate or lending, I just want to share the joy that I have for my parents. There were 23 of us (family members) who showed up at my parents new home for Thanksgiving. We were missing about 8 people who could not make it. The house was packed, everyone was smiling, the food was phenominal, and the warmth from the woodstove was charming. We all had a great time .... I hope all of you did too!!

Today has been much slower than we are used to here at Lake City Mortgage. I have around 6 loans that I am working on for next month. I guess there is no hurry, I just like to get things done quickly. I have had to find a balance for myself today. A couple of the advantages that a person realizes in working with me is the efficiency that I provide by keeping everyone involved in the process updated within minutes of every new update that I get from my processing and underwriting team. If I know about it then everyone else knows about it immediately. Also I like to get the loan completed as quickly as possible. Because I fully disclose everything up front to my borrowers there is no need for me to drag my feet or by myself some time. Anyone who works with me knows what they are getting right from the begining.

Around the holidays I struggle to find a balance. I definitely like how peoples spirits are uplifted during this time. The struggle for me is that when I get updates I cannot always get in touch with my clients. I have one deal closing at the end of this month and 2 closing in the first week of next month. Sometimes; as was the case today the update comes with an additional condition that must be met. No because it is only Wed. and most people are going to be gone the entire weekend I am being slowed down by about 3 days in getting all of my conditions in. I usually like to have the deal signed off on well in advance of the projected closing date so that when the day comes there are no questions. Often times I am completely done my end of the work around a week before the closing date is set. I typically set deals to close 48 hours out.

Now today out of the 6 active loans for next month and the numerous clients whom I am working with to get the process started I was only able to reach 2 of my clients. The rest of them I presume are gone; most likely in the car or on a plane headed toward their holiday destination. Of course there is nothing wrong with that. My day has still been pretty productive, I got a lot of advertising done.

I am just not accustom to "SLOW" and it makes me a little uneasy.

I was going to wait until after this weekend to post my 100th post. I wanted my 100th post to be special so my plan was to take a bunch of pictures of the Adirondacks this weekend while I'm at my mothers home. I am going to visit my mothers new home tomorrow and over the weekend. The new home that we just closed on at the end of October. This year my mother is hosting Thanksgiving which is awesome. Because of the condition of her previous home she has not been able to host thanksgiving since I was a small child.

Well I decided not to wait until after the weekend to write another post because I came across something that is very interesting to me and I wanted to see if any of you have heard of this before. Rapleaf; is a free program that allows you to sign up and be rated by peers, clients, and colleagues. It is a way for you to manage your on-line reputation. Their motto is "it is more profitable to be ethical". I believe wholeheartedly that it is more profitable to be ethical. If your business consists of calling up random prospects, pitching random details of a transaction, and closing a handful of them without actually taking the time to understand your clients needs you will burn out. You can't constantly be looking for new business if you do not have a steady source for new business.

Believe me, I know from experience that cold calling will only get you so far before you feel like giving up on your business. Ethics are very important to me on a personal level, but professionally ethics are not just important; my continued business depends on it. I work in a small area where as the saying goes "everyone knows everyone". For me to operate with strict ethical standards is like having a blank check that I can write whatever I want on it.

It's professional suicide not to follow through with what you promise, a good rule of thumb is to under-promise and over-deliver. I know that statement is beat to death but that is also true for many statements that can be applied across a broad spectrum.

I got off on a small tangent. My purpose for writing this blog is to find out if any of you are members of www.rapleaf.com and if any of you are let me know and I'll rate you. Also please feel free to rate me. My email address is cohlsen@lakecitymtg.com or chrisatlakecity@mortgageny.net .Thank you all for your input, and HAVE A HAPPY THANKSGIVING!!!

It really feels like a Friday to me, I can't explain it but Fridays have a certain feel to them. Everything is laid back in the office on Friday's. Many companies consider it dress down day. Whats funny about Fridays is that I am usually less gung ho and yet I seem to have super productive Fridays. It's kind of like the idea that if you tense up in the middle of a car accident just before impact you usually get much more hurt than if you were to have stayed relaxed. On Friday I just sit back and the calls seem to pour in.

I've written in previous blogs about how I took a little time off from this industry because I moved accross the state back to my home town. When I got back there weren't any mortgage companies hiring at the time and I did not have the required reserves to start my own shop. I was estactic about gaining employment at Lake City Mortgage. I love this industry and the work associated with it. I lay in bed for a few minutes in the morning not wanting to leave the shelter of my warm blankets. After about 5 minutes of laying in bed and thinking about my agenda (usually the progression of a couple specific loan files) for the day I forget about the cold and snap out of bed. I really believe that I am blessed to be in a position where the thought of my work gets me up out of bed in the morning excited to meet the day.

One of the most important pieces of the real estate transaction puzzle that will come into play even before the details of the financial transaction are defined is finding the right home. Finding the perfect home is not always an easy task. There are many things to consider when determining whether or not to make an offer on a home; 1. How many people are going to be living in the home? Is the home of interest large enough or small enough to accommodate your needs?

2. What is the tax rate in the area? Are you or the home eligible for a local state government property/school tax reduction?

3. If you have children, is the home within your preferred school district?

4. How much can you afford? Are you going to be required to pay your taxes and insurance on a monthly basis along with the principal and interest payments for your mortgage in one monthly payment?

5. Are you going to be required to pay PMI in the mortgage?

6. Is the home that you are considering priced properly according to the market? Are you being asked to overpay?

7. Is the seller reasonable and motivated to sell?

8. Are you working with a quality Realtor who will guide you in the right direction? Are all of the professionals with whom you are working ethically grounded?

9. Do you have practical expectations of what you can expect with regard to the processing of the transaction and the final results at closing?

10. Are you prepared for all of the expenses that come with homeownership that may not be reflected in the payment i.e. garbage removal, electricity, HOA dues (if any) etc…?

These 10 questions are very important questions for you to ask yourself. Sometimes the answers are easy but sometimes the complexities of each individual situation can create uncertainty. Often times you will not know all of the answers yourself and that is why it is important to deal with an ethical professional. A long standing question that people have been asking for centuries is; “What came first, the chicken or the egg?” The same question can be asked in this case; “Who should I consult with first, the Lender or the Realtor?” It’s true that you may not have all of the answers to the questions that are posed above, that’s ok because a trained professional can assist you in obtaining the answers that you need. The question is which professional should you go to first? There is no real simple answer to that question and I guess it really breaks down to which you feel more comfortable with. A Realtor typically will not go out showing properties to a prospect unless they are in position to make some kind of a reasonable assumption that you are qualified to make an offer on the home and ultimately complete the transaction. If you have the asking price stashed away in your back pocket or a bank account somewhere a Realtor could reasonably assume that you are qualified to purchase the home. If you are going to be needing financing however and you have not applied for financing the assumption that you are qualified to purchase the home is less reasonable and needs to be verified prior to a Realtor making an offer on a home on your behalf. The advantage of first consulting with your Mortgage Advisor is that you will know exactly how much of a monthly payment you can qualify for. You will also know the exact range that you can afford to shop in. Also when Realtors see you coming with a Pre-Approval letter they often times are more eager to serve you because they already know that you are qualified. On the other hand if you do not have a Mortgage Advisor often times a Realtor can refer you to an ethical lender whom he/she does regular business with. Realtors typically do repeat business with Mortgage Professionals who come through for their clients. There are pro’s and con’s that need to be considered when you are considering the first steps that need to be taken in order to secure homeownership and financing if needed. My personal opinions; if you need financing to buy a home go see a mortgage professional first. A mortgage professional will help you take some of the guess work out of the process and give you a buyer’s edge when you walk into a real estate office. Walking in with a pre-approval letter is like walking in with cash (essentially you are walking in with cash, the lenders cash). If you first consult with your Mortgage Advisor easily be able to answer the questions above and you will have more power to negotiate the price of the home. I hope that this information has been helpful to you. For more related information visit www.mortgageny.net. If you are already into the home shopping phase of the transaction visit www.mortgageny.net/homes to find a great home in your price range.

I have closed quite a bit this month. Fee for a Mortgage Professional is a relative term. My fee this month is pretty high because of the number of loans that I have closed but for many other companies I'm sure that my numbers are low. It really has to do with the split, I can afford to keep my costs very low.

 I always give good honest quotes. So honest in fact that some people decide not to do business with me because they are getting a better quote from another lender. My fees are so low and my quotes are so accurate that when someone tells me the dimensions of another loan being offered to them I know whether or not it is a real deal or smoke and mirrors.

                                         I never bad mouth other lenders; I wouldn't want it done to me. I do try to educate my clients as to what is truly available on the market. My rate and fee will not always be the lowest (though most often they are) but when a borrower gets a quote from me, they know what they are getting. There will not be any surprises at the closing table. If I am unable to get through to a person and I know that they are not going to get what is promised to them from another lender I tell them almost verbatim "Well I hope everything works out for you, just remember if xyz (lender) is not able to follow through with this loan for you that I'll be here for you."

 This week I had two people whom had told me that they were getting a better deal from another lender come back to me. The first person who came back to me I had first spoken to a month ago. He was upset about the way that the other lender had conducted himself and he told me that he should've never left me to go with another lender in the first place. The lender had lied about the rate and the closing costs were substantially higher than he was originally quoted. We are closing on the 26th of this month (we could do it sooner if the seller's side was ready).

The other person who came back to me told me that the lender that she left me to work with cannot do anything with the file. She said that she was told that she was fully approved and then something came up that killed the deal. I know what it is that killed the deal for the other lender. This person owns several rental properties already which makes the DTI appear to be out of whack. When the REO section of DU is properly filled out and the PITI washes are done correctly her DTI is well within guidelines.

The lenders whom I was up against lied and as a result I got the loans. Its always been true that honesty will always win but especially in todays market. We are dealing with a more educated consumer than the days of the past and as such honesty, knowledge, and professionalism is what will bring the business in.   

So remember if you are a Mortgage Professional never lie to get business, it will just backfire in your face and you'll lose business as a result!                                                                                                                                          

I truly believe that any true professional in this industry truly enjoys being able to help people any way that they can. We are not in it for the money, the money is a by-product of helping people; like Zig Zigglar says "if you help enough people get what they want you will automatically get what you want" I have quoted that quote by Zig a few times because it is so true.

The reason I am writing this post is because I want to comment on what my manager here at Lake City Mortgage is doing. He is helping to sponsor Muscular Disease Atrophy. He is allowing himself to be arrested and he is going to live on bread and water at the jail (set up at the local Comfort Inn here in Plattsburgh) until his "bail" is raised. His bail will then be donated to MDA research for the cure.

This really is a great gesture to the community and a great thing to do for all of the people who are suffering from this disease. Here's the link https://www.mdaevent.org/ParticipantInfo.aspx?j=d2a96605-5e76-4d4c-8d0d-1a8043c47721.

 I encourage you to donate if you can and remember, If you just help enough people get what they want ...

I was recently approached by http://www.lender411.com/ to be a guest author. I have checked the site out and it is great. I wrote one article there which I also made a post here the article is at  http://www.lender411.com/article-center/index.php?page=article&article_id=98. It was my first article and not really that rich although there is some useful information there for first time home buyers. Since then I have written 2 very good articles for Lender411.com and as soon as I hit the submit button the article disappeared and I lost it both times. I think that there is something wrong with the way that it registers time, like it auto logs me out if I am there for too long without typing. Which is the case because I read and re-read my articles and blogs before I post them. So I am going to write my articles in Word format then just copy and paste when the articles are completely finished.

AR is a great site and nothing will ever replace it. That being said I really think that as an author on Lender411.com you are presented with another unique opportunity to get the word out there. I think its a great site for truly ethical mortgage professionals and it is equally beneficial to potential homebuyers looking for more information on the topic of a home purchase or refinance.