Thursday, November 12, 2009

Do you trust your lender? Bank of the West Costs Buyer the Deal

Today on the Tom Martino radio show, a caller phoned in to share an unbelievable story.  Only it was all too true.
The buyer and his wife had found their dream home after going to Bank of the West and getting a prequal letter.  They negotiated a successful offer on the property and were under contract.  After completing all necessary steps- submitting an earnest money check, submitting a completed mortgage application, completing inspection, getting title insurance- they set their closing date.  Two days ahead of time they contacted the lender to be sure that everything would go through as planned.  "Absolutely," they were told.  "No problem at all, we will see you on Friday."
Friday morning they awoke with excitement and anticipation.  Today would be the day that they would close on their dream home.  In the state of Colorado, possession usually takes place at the time of closing, so they were set to enjoy a romantic dinner in their brand new home.
Two hours before closing, they got a call.  The lenders were trying to verify employment.  It seems that the banker never started the loan process.
They didn't close that day.  The seller refused to extend the closing date and kept their $2,000 earnest money. 
They sold their previous home and now no longer had their dream home to move into.  The sellers don't want to work with them at all.  Tom is getting the would-be buyers a lawyer.
And we wonder how banking got to be such a mess. 

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