This is the truth here, and if you are a home buyer in the Phoenix market you may not like to hear exactly what I am going to say but unfortunately it’s completely relevant to the way our market is right now. If you are a Phoenix Real Estate agent and you are working with sellers I absolutely commend you for protecting your seller by requiring buyer’s who write offers on your listing to qualify through your trusted loan officer. Why you might ask? I’ll tell you why, it’s the fact that by doing so you are better serving your seller, you’re fulfilling your fiduciary duty.
Let me explain what I mean here, what I am talking about is the fact that if you have a trusted loan officer that you have been working with you probably work with them for a reason. They are probably highly experienced, and they probably know how to get the job done smoothly and “dropping the ball”, as it is so common among inexperience lenders, is NOT even in your trusty loan officer’s vocabulary. I had a chat with a Real Estate agent today about fiduciary duty and we got to talking about ways she could protect her seller. She told me that she was listing a short sale in phoenix and that the buyers lender seemed to be dropping the ball. I didn’t even flinch when she told me because this story is oh so common, however because she was negotiating this short sale in attempts to help her seller avoid foreclosure she had to make sure the buyers lender could perform.
Because there was a trustee sale date set in stone as there is on many short sale transactions, she had to make sure that she not only did her job but make sure that all parties including the lender did their job. Believe me, it’s ALOT more work than one might think. Ponder about this for a second, if the buyers lender dropped the ball at the 11th hour and the deal fell apart the house could go into foreclosure. Not only does the seller now have a foreclosure on her credit, but all parties lose this way. All of the negotiating and leg work the listing agent put into the deal was done for NOTHING, yes thats right they get NOTHING if they don’t close the short sale and the house goes into foreclosure.
I know as a buyer it might be a pain in the rear to have to get pre-qualified through the selling party’s lender but just know that this is a method of protecting the seller from foreclosure and since the Phoenix Real Estate agent has a fiduciary duty of protecting their client I think that it is a fantastic idea and should be implemented by more listing agents.
If you are a buyer, you stand a better chance of not running into these problems if you work with a reputable lender and I am here to help. If you are an agent, we can talk about how you can protect your sellers by contacting me now.
-Justin, The Electric Loan Officer
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