More insanity in mortgage world

It’s like Roseann Roseannadana always says (or said back when she was younger.)  If it’s not one thing, it’s another.  If one lender sends an appraiser from Farm Country to The Big City, another lender says 8 out of 8 units sold only equals 88% sold.

It’s always somethin’

When your guide started this discussion on mortgages a week ago, I did not mean for it to turn into a week long diatribe.  But I had my next most favorite mortgage snafu yesterday.

A young, qualified buyer under contract for the last unit at the Buena Flats condos in Lakeview.  It would make sense that this – the LAST closing – would be the easiest.

But this poor buyer’s lender – and the underwriter, hiding behind the anonymity of his/her big bank facade – has certain guidelines.  Guidelines for this bank require 90% of the units in a new development be SOLD.

And at Buena Flats, this is the 8th of 8.  Nay! says Founder’s Bank (no, your guide is not afraid to name names) the building is only 88% sold!  Let’s do the math:  7 closed plus 1 sold is 8.  There are 8 units.  Wouldn’t that be 100%?

Nope.

7 closed is 88% sold.  Ours doesn’t count.

I think this situation worked itself out today.  My developer tells me that his attorney is getting ready to schedule the closing for Thursday.  It’s always good when situations resolve themselves.  But why in the world is this an issue to begin with?  This closing should have occurred yesterday, and it was blown by this idiot lender.