What are the Banks Thinking?

We are seeing every excuse imaginable to NOT lend money. As citizens of this nation, we loaned them huge amounts of money when they were, to a large extent, insolvent. Now we are looking to buy homes and we get every excuse why we are not a good risk for a loan. I just was informed about a purchase that was in escrow for over 2 months. At the very end, just before closing the deal and the buyer moving into their dream home, the bank said that the borrower was not in his job long enough. Don’t they look at those facts when the buyer first applies for the loan?

Another purchase for a very solid buyer has not closed and is over a month late. The deal has been repeatedly delayed by the buyers’ lender and the seller, a bank. We are talking about a government employee with excellent credit and a job as a firemen. The lender has asked for more information several times. The selling bank has demanded that the Prescott Valley property close using an escrow company in California. That escrow company is charging hundreds of dollars more than the typical local escrow charges, a fact that was not disclosed until just before the last delayed closing date. The deal should have closed again on September 29th. On September 30th the brokers got more paperwork to sign from the escrow officer. We are doing everything as it is presented to us. The banks are so far behind that they are causing a lot of grief for the buyers.

I am writing you to tell you that you need to be patient and to be ready for your future to be pulled right out from under you. These banking institutions are not staffed to handle the sale of properties they now own. They are scrutinizing every document over and over looking for those excuses.

Know you are not alone in the process. If you get through the process you will be the owner of a greatly reduced property with historically low interest rates. It will be worth the hastle. Just plan to be in a hastle for a time.