Posted by PJM/MI on 5/1/07 6:25am
Msg #188215

The "No Sign" Closings

Layely I've been having several closings that don't close at the table.
The problem is the loan officer has told the borrowers, "Don't make your monthly payment..we'll close before it's due". Then the interest rate is WAY off as is the monthly payments they were "promised".
The savvy borrower will continue to make the payment so all is not lost and they can find another lender.
Last night's situation had the bo's totally in the dark... the lo never called them with rates, etc., and the lo was unreachable.
It may be alot of sub-prime lenders have gone under, but apparently the below par lo is still out there.

Reply by MistarellaFL on 5/1/07 7:29am
Msg #188223

Last week was a record week for me....with cancellations.
Apparently the brws were just getting the "numbers" while I was en route.
Only made it to the table twice last week.
Frustrating, isn't it?

Reply by DCD/MI on 5/1/07 10:25am
Msg #188262

This is a classic move for a bait and switch. It even happened to me about 5 years ago. Broker told us not to make our payment and sent a Good Faith Estimate that looked OK to us. An hour before the notary was to come to close the Broker called and asked if we could write a check for $1500 to close! We were supposed to be getting a refund! I lambasted her, she blamed the lender blah blah, and said she had to rewrite the docs and it would be 3 or 4 days, by then our mtg. payment was late and interest tacked on, and we had already spent our payment (we were very naive I guess). The final HUD was still a mess and we essentially got scr*wed. That's why these Mtg. brokers/lender tell people not to make the payment, so they spend it and have to take whatever the loan is because it takes too long to find another loan. Terrible.

Reply by DebbieT on 5/1/07 12:28pm
Msg #188274

I see and hear this all the time from clients. They are told not to pay their mortgage and then when the papers are in front of them it is too late and they feel they have no choice. It is so hard not to put my 2 cents in. I just sit there and bite my lip.

Reply by jojo_MN on 5/1/07 12:48pm
Msg #188280

Many brokers tell this to the borrowers then take over a month to get it closed. By this time, their credit rating drops and they "don't have a choice" other than sign the loan. Pathetic at best. Unfortunately, there are getting to be more and more out there like that.

Reply by lenelle/FL on 5/1/07 1:47pm
Msg #188286

I just had one this morning <sigh> n/m