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

• Loses motivation (i.e., job transfer did not go through, etc.)
• Illness, divorce, etc.
• Home has known hidden defects that are subsequently discovered.
• Home has unknown defects that are discovered.
• Home inspection reveals nominal amount of small defects that seller is unwilling to repair.
• Removes property from the premises that the buyer believed was included.
• Is unable to clear up problems or liens.
• Last minute liens are discovered.
• Seller did not own 100% of property as previously disclosed.
• Seller thought partner’s signatures were “no problem” but they were.
• Seller leaves town without giving anyone power of attorney.
• The notary did not make a clear stamp when notarizing the seller’s signature.
• Seller delays the projected move-out date.

The Buyer

• Did not give thorough information on loan application.
• Did not give thorough information to their agent.
• Submits incorrect tax returns to lender.
• Is not fully committed to the transaction.
• Source of down payment changes.
• Family members do not like purchase.
• Is too demanding regarding condition.
• Finds another property that is a “better deal”.
• Is always negotiating instead of following through with transaction.
• The buyers bring an attorney into the picture.
• They do not execute paperwork in a timely manner.
• They do not deliver their money in a "check cleared" fashion to the closing agent.
• Job changes, illness, divorce, or other financial setback-
• Comes up short on money.
• Does not obtain insurance in a timely manner

The Lender

• Lender does not properly pre-qualify borrower.
• Lender has a personal discrepancy with the borrower.
• Lender decides last minute they aren’t comfortable with the property.
• Lender wants property repaired or cleaned prior to close.
• Lender raises rates, points or costs.
• Borrower does not qualify because of a late addition of information.
• Lender requires a last minute re-appraisal.
• The borrower dots not like the fine print in the loan documents that is received three days before close.
• Lender misplaces a file.
• The lender does not simultaneously ask for information from the buyers; they ask for it in bits and pieces.
• Lender pulls a "bait and switch" on the buyer.

The Title Company

• Fails to notify agents of unsigned or unreturned documents so that the agents can cure the problems relating to them.
• Fails to obtain information from beneficiaries, lien holders, title companies, insurance companies or lenders in a timely manner.
• Allows principals leave town without getting all necessary signatures.
• Incorrect at interpreting or assuming aspects of the transaction and then passing these items onto related parties such as lenders, attorneys, buyers and sellers.
• Loses paperwork.
• Incorrectly prepares paperwork.
• Does not pass on valuable information fast enough.
• Does not coordinate so that in any items can be done simultaneously.
• Does not find liens or problems until last minute.
• Poor service.

The Appraisal

• The appraiser misunderstands the market.
• Can’t find appropriate comparable sales available in the area.
• Appraiser delays (too busy, etc.)
• Incorrect appraisal.
• Appraisal too low.
• Comparables found are too low.

P.S. My job is to make sure none of these problems accrue. I have just found that by making you aware of them, it helps us all what is possibly in store for you. My success depends on your satisfaction and subsequent referrals. I am committed to building strong, lasting, lifelong relationships one person at a time. My goal is to become “Your Personal and Real Estate Consultant … For Life!