I'm tired...

This is to discuss on how tired I've become trying to help buyers, who has been approved for a home, but needs a location to fund, buy a home in this market.I recently put in an offer ($30k over asking price) though FHA, it needed repairs therefore I was going towards the 203k route. However, this listing agent is requiring (per her sellers) DU findings from the lender! WTF! Who has heard of this? I tried to get the DU findings from them, even had my buyers write an authorization to share the information, but the underwriters state it's their corporate information and will not share it with selling agents!!!Truly tired of this shenanigan...probably more to come once the end of the year comes around.BTW, the listing agent has 4 other offers and all cash is one of them...let me guess which one she's going to pick...

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  • One of my major clients also has gone the way of required LO / DU verification by a Mortgage company they specify must do either the initial or 2nd verification which must be submitted with all offers.

    I also really like this, as it has been my experience that some so-call Approvals were nothing more than a Q & A phone conversation with their lender and when the rubber met the road, they did not qualify.

    The mortgage company doing the verification required by the lender can not take the buyers information from the agent nor the buyers lender, if they are working with a lender already. They need to talk directly with the buyer and get the required furnished information from them. Things like tax statements, W-2s - documents neither their selling agent nor you should have privy to.

    This requirement has greatly cut back fall out rates for my client big time - saving them much time and money.
    They buyers can still use any lender of their choosing.
  • What is DU funding? Does this have to do with paperwork on the investor's company?
    • DU - Desktop Underwriting. An automated program the Loan Officer imputs with the information and verifications gathered from buyer.
  • Actually, the request for the "Findings" is becoming common. It was a loan officer that told me to request the Findings on just about every transaction where I'm working with the seller to make sure the buyer is capable of purchasing. Plus, so many lazy agents out there are still acting as if it's 1999 and not even pre-qualifing (which doesn't mean squat) their buyers before submitting an offer. I've has happen to me twice in the last month.
    • good points Steve
      • I've gone far with this client. To the point that it's in underwriting and approved of the loan. I made sure that this buyer was well qualified.
        • Johnny, you have done your job like you should have, but the many agents before you have not. And now we all must pay the price.

          As REO listing agents, we have to protect our clients also. That also means protecting their assets also. And when we get multiple offers in at the same time on one property, we have to make the best decision possible on the buyer MOST capable of closing the deal with the fewest issues and in the quickest time. It's not always about the best price.... on paper. Way too many of the "Better" deals have fallen apart weeks after being under contract, loosing other "lesser" deals that could have closed in that time frame.

          Today it's all about INFO! What can we find out about the buyer to see if they can actually close the deal in the time frame suitable to the seller. The "better" deal is absolutely no good if they cannot close. I hate to say it, but it's the times we live in now.
          • Since I'm not a mega REO agent (few listings here and there) I help buyers and educate them on the REO process in order for them to buy. I'm aware that banks need their "100%, positive, definate" buyer, that's why I have my buyers jump through lender hoops and hurddles before I get them into an offer position.

            However, if the lender they have can't or won't release the DU findings and the selling agent insists, what should people do?

            BTW, I got around it by having the lender rewrite the approval letter with findings suchs as FICO score, front/back end ratios and provided full proof of funds. I guess I'm going to need to educate the lenders what REO agents need in order to make things happen.
            • Our industry is changing so fast right now, few lenders (and agents) have any idea of what’s going on. You are doing the right thing, keep it up. It would be nice to see all agents go to this extent but we all know that will not happen. And that’s why you are seeing these new procedures popping up.

              I could only wish all the agents bringing me offers would do only half of what you have done with your client. I would have closed a lot more deals this year!
        • Johnny,

          My clients have just started implementing that process and I like it. It really weeds out the not so serious buyers. I have never had any trouble retaining the DU from buyers. They won't release that directly to you because there's personal information on there about the buyers. If your having trouble getting it then tell your buyers to get it. It's just a form that the mortgage person already has and if it's required to present an offer then I don't see where the issues is. It's not their corporation info, it's the buyers personal information and if the buyer says release it then they should. Bottom line!!!

          But as a buyer your client has three strikes against them as it stands now. First, they're a mortgage offer and on top of that an FHA. Second, your up against a cash offer. And lastly, you cannot provide the DU so that makes your FHA buyer look even less competitive. If using a mortgage to buy a house, especially when in a multiple offer situation, it has to be a strong buyer. Unfortunately, your probably the least attractive buyer even though your above asking price. That's just the way things are right now. Good luck.
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