PMI Company Turned My Buyer Down

There's a first time for everything.  I had a pre-approved conventional (10% down) buyer who had the best offer on a forclosed Oak Lawn home out of 8 offers.  She really wanted the home and was quite happy. 

As the financing process progressed, we needed to ask for an extension because the file was in underwriting for a very long time.  My buyer was no longer happy, even when I explained the ever-changing mortgage rules and regulations.  In fact, she blamed everything on the loan officer.

Thank goodness the buyer's attorney struck up a good rapport with the foreclosure seller's attorney since we needed an extension and it was granted without any fees.  Then the bad news hit.

The PMI company did not approve the financing because they had just changed their minimum FICO scores and she fell under.  She could not believe it and again blamed the loan officer, stating that she should have known this new rule.

Long story short, the loan officer could no longer work with my angry buyer and brought in a V.P. to handle things.  The conventional loan got switched over to FHA (on a foreclosure that did need some work), and somehow the deal went through (I have no idea how).  And it went through way past our original closing date and without any per diem fees to the buyer.  On a foreclosure!

This was one I did not anticipate closing.  I felt very bad for the loan officer because this buyer blamed her for everything from lying to her about the interest rates to not locking her rate in correctly to the PMI fiasco and more.  I had to treat my angry buyer with kid gloves even though I did not agree with her about the loan officer.

If the loan officer had done all of the things she was accused of, I would think she would have been fired.  But she wasn't and this buyer just did not understand the process and made her own conclusions.

I have read blog posts written by very experienced loan officers stating that they are finding it difficult to keep up with all of the new changes, rules and regs.  Sometimes these revisions occur in the middle of a buyer's financing and it can change everything like in this case.  But this is happening and buyers and sellers need to realize that it will most likely take longer to close on a sale today than just a few months ago.

If you're interested in purchasing

or properties in any other southwest suburb, give Judy Orr a call at 708-536-8200.

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