Warehouse Lenders. My Recent Experience With All Home Lending

Warehouse Lenders

Warehouse Lenders. My Recent Experience With All Home Lending

The transaction was a nightmare from day one. A tenant occupied property (with lease!) is a very difficult thing to sell in any market. After adding two short sale lenders into the mix, a Realtor is in for a real uphill battle. The one bright spot of the entire deal was the absolutely sparkling buyer for the deal. Yup, a multi-millionaire buying the home with 40% down as a part-time residence for his in-laws is a very rare kind of buyer in this market! Having finally obtained a hard fought short sale approval, All Home Lending still had another wave of pain for everybody involved in the transaction!

One of the most difficult parts of negotiating a short sale is that after incredibly long periods of relative inactivity, short sale lenders expect immediate action once a file has been approved. On this particular file, approval in hand, I approached the buyer's loan broker knowing that we were going to need to move quickly in order to avoid the looming foreclosure date. Since we had virtually all of the information already in to get the loan approved, I figured we would be able to order the approval right away. All Home Lending had other ideas. They were going to make sure that the file was fully approved prior to allowing for the appraisal ordered. This resulted in the first delay.

As the buyer was a relatively sophisticated individual, several different waves of paperwork were required in order to make any headway. After finally getting the appraisal ordered and dealing with the review process, we went forward with ordering the loan documents. Of course, this request met with an additional round of paperwork required for our borrower to be approved. This created another delay. In fact, I had to request an extension of the foreclosure date from Chase just to accommodate their constant documentation requests. For those of you unfamiliar with the process of begging lenders for extensions of short sale approval, it is roughly akin to dental work.

After getting our loan documents in on Wednesday, and signed that very day, I figured we were home free. Once again, I figured wrong. All Home Lending decided that they needed every piece of documentation updated. That isn't completely out of the ordinary. It was the end of the month and that kind of thing sometimes happens with lenders, but then something really unusual came up. The borrower had an American Express card, and although it had a zero balance, it had to go! That's right, despite the fact that the card had a zero balance, All Home Lending required that the borrower actually enter an American Express office, close the account which he had had since 1981 and provide them written proof that the account was no longer open in order to fund the loan...nine full days after the loan documents were signed!

If you are a Realtor, it is always a good idea to stick to your guns and make sure that your lender of choice gets a crack at earning a client's business. In this lending market, a direct lender like Wells, Chase, Met Life or B of A represents the smartest choice. I usually stay away from mortgage brokers, but will give a good one a shot if they can impress me with their abilities. One thing is for darn sure, if I am ever approached by a broker planning on using a warehouse lender again, I will run for the hills!

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