What Can Go Wrong...
Potential Roadblocks to a Successful Closing
The
vast majority of people in business are not in enduring businesses;
rather, they are in elongated promotions. Successful businesses have a
system for every process. This system allows them to solve problems in
advance instead of being in the business of “putting out fires”. The
following list was developed from research of the mortgage industry to
find out why customers were dissatisfied with their mortgage process.
Our team is committed to developing systems that will enable us to
overcome these problems, resulting in a successful closing. The first
step is to educate you as to what the potential problems are so that you
can anticipate them along with our team, and be fully educated as to
what goes on behind the scenes in your transaction.
The
Seller
1. Loses
motivation (i.e., job transfer did not go through, etc.)
2. Illness,
divorce, etc.
3. Home
has known hidden defects that are subsequently discovered.
4. Home
has unknown defects that are discovered.
5. Home
inspection reveals nominal amount of small defects that seller is
unwilling to repair.
6. Removes
property from the premises that the buyer believed was included.
7. Is
unable to clear up problems or liens.
8. Last
minute liens are discovered.
9. Seller
did not own 100% of property as previously disclosed.
10. Seller
thought partners signatures were “no problem” but they were.
11. Seller
leaves town without giving anyone power of attorney.
12. The
notary did not make a clear stamp when notarizing the seller’s
signature.
13. Seller
delays the projected move-out date.
The
Buyer
1.
Did not give thorough information on loan application.
2.
Did not give thorough information to their agent.
3.
Submits incorrect tax returns to lender.
4.
Is not fully committed to the transaction.
5.
Source of down payment changes.
6.
Family members do not like purchase.
7.
Is too demanding regarding condition.
8.
Finds another property that is a “better deal”.
9.
Is always negotiating instead of following through with
transaction.
10.
The buyers bring an attorney into the picture.
11.
They do not execute paperwork in a timely manner.
12.
They do not deliver their money in a "check cleared"
fashion to the closing agent.
13.
Job changes, illness, divorce, or other financial setback-
14.
Comes up short on money.
15.
Does not obtain insurance in a timely manner
The
Lender
1.
Lender does not properly pre-qualify borrower.
2.
Lender has a personal discrepancy with the borrower.
3.
Lender decides last minute they aren’t comfortable with the
property.
4.
Lender wants property repaired or cleaned prior to close.
5.
Lender raises rates, points or costs.
6.
Borrower does not qualify because of a late addition of
information.
7.
Lender requires a last minute re-appraisal.
8.
The borrower dots not like the fine print in the loan documents
that is received three days before close.
9.
Lender misplaces a file.
10.
The lender does not simultaneously ask for information from the
buyers; they ask for it in bits and pieces.
11.
Lender pulls a "bait and switch" on the buyer.
The
Title Company
1.
Fails to notify agents of unsigned or unreturned documents so
that the agents can cure the problems relating to them.
2. Fails
to obtain information from beneficiaries, lien holders, title companies,
insurance companies or lenders in a timely manner.
3. Allows
principals leave town without getting all necessary signatures.
4. Incorrect
at interpreting or assuming aspects of the transaction and then passing
these items onto related parties such as lenders, attorneys, buyers and
sellers.
5. Loses
paperwork.
6.
Incorrectly prepares paperwork.
7. Does
not pass on valuable information fast enough.
8. Does
not coordinate so that in any items can be done simultaneously.
9. Does
not find liens or problems until last minute.
10. Poor
service.
The
Appraisal
1. The
appraiser misunderstands the market.
2. Can’t
find appropriate comparable sales available in the area.
3.
Appraiser delays (too busy, etc.)
4. Incorrect
appraisal.
5. Appraisal
too low.
6.
Comparables found are too low.
P.S.
Our team’s job is to make sure none of these problems accrue. We have
just found that by making you aware of them, it helps us all. Our
success depends on your satisfaction and subsequent referrals. We are
committed to building strong, lasting, lifelong relationships one person
at a time. Our goal is to become “Your Personal and Real Estate
Consultants … For Life!
Paul
and
Judy Wilson
and
TheWilsonHomeTeam.com
, your real estate consultants … for life!
293-1224 or 275-5464
