avoiding issues in real estate transactions

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• Does not tell the truth to their agent.
• Does not tell the truth on the loan application.
• Submits incorrect information to their lender.
• Has recent late payments on credit report.
• Debt status changes after loan application.
• Borrower loses job, Co-borrower loses job.
• Income verification process shows facts different than loan application.
• Source of down payment goes away.
• Overtime or other income source is disallowed by underwriter.
• Does some “recreational car shopping” during loan process period.
• Illness, injury, divorce or other financial setback during escrow.
• Gift donor changes mind.
• Cannot locate petition or discharge of bankruptcy.
• Forgets to mention bankruptcy.
• Cannot locate tax returns, bank statement, divorce decree.
• Interest rates increase and borrower can no longer qualify.
• Loan officer lies about borrower’s ability to qualify.
• Child support not disclosed on loan application.
• Is a foreign national.. 
• Loan program changes with higher rates, points and fees.
• Mortgage payment is double the previous housing payment – buyer faints.
• Borrower/Co-borrower cannot prove two-year employment history.
• Brings in handwritten pay stubs.
• Just before closing, switches to job requiring probation period.
• Switches from salaried job to 100% commission income.
• Borrower/co-borrower dies.
• Family members or friends don’t like the home the buyer chooses.
• Is too picky about property in price range they can afford.
• Feels the house is misrepresented.
• Veteran’s DD214 form is not available.
• Spends money earmarked for the closing table.
• Does not have paper trail for gift or loan money.
• Buyer’s contingent sale does not close or is delayed.
• Does not bring cashier’s check to closing – expects to pay with post-dated personal check.
• Finds another property that is a better “deal.”

Seller

• Loses motivation to sell (transfer falls out, reconciles marriage).
• Gets sick, divorced, dies (yes, dies!)
• Cannot find suitable replacement property.
• Will not allow appraiser inside home.
• Will not allow inspector inside home – or fails to remove dog at appropriate time.
• Unwilling to repair major defects revealed in buyer’s inspection.
• Removes property shown in contract to be included in sale.
• Can’t clear liens that appear unexpectedly on property.
• Does not own 100% of property as previously disclosed.
• Thought getting partner’s (or ex-partner’s) signatures were “no problem” – wrong!
• Leaves town without arranging Power of Attorney.
• Does not move out by the agreed-to date.
• Does not complete agreed-to repairs.
• Home goes into foreclosure during escrow (contract pending period). Misrepresents information about home or neighborhood.
• Fails to disclose hidden defects that are found in the inspection process.
• Builder fails to complete home on time.
• Builder’s costs are higher than expected and contracted price cannot be honored.
• New home does not pass final inspections.
• Does not show up to close.
• Seller finds himself in Jail.

Property

• County will not approve septic system or well.
• Termite report reveals active termites and/or termite damage.
• Was misrepresented as to size and condition.
• Is destroyed or damaged prior to closing.
• Is not structurally sound.
• Roof is passed by inspector but rejected by insurance company.
• Has undisclosed defects that surface during the repair process.
• Portion of home sits on neighbor’s property.
• Completed repairs are unacceptable to buyer.

• Will not return phone calls – is generally unresponsive.
• Fails to arrange access to property for inspections and appraisal.
• Does not pre-qualify buyer prior to preparing offer.
• Does not complete contracts and other legal documents correctly.
• Is inexperienced with no guidance.
• Leaves for vacation with no back-up or contact person to cover.
• Jerks around other parties in the transaction – has huge ego.
• In general – doesn’t have a clue!

• Will not return phone calls – is generally unresponsive.
• Does not properly pre-qualify the borrower.
• Changes status from “preapproved” to “oops, not approved” during escrow period.
• Lender-required repairs surface the day before closing.
• Misquotes rates, points or costs.
• Fails to lock rate as requested by borrower and rates rise unexpectedly.
•  Loses file or selected documents in file.
• Fails to get required information from borrower.
• Pulls a “bait & switch” on borrower.
• Loses investor and does not have the money to fund the loan.
• Fails to order title work on a timely basis.
• Includes undisclosed terms and conditions discovered by borrower at closing table.

• Will not return phone calls – is generally unresponsive.
• Fails to notify lender/agents of unsigned documents.
• Fails to collect needed data on a timely basis.
• Fails to get signatures from traveling principals.
• Loses paperwork.
• Fails to pass on pertinent information on a timely basis.
• Prepares final documents incorrectly.
• Fails to find title problems until the last minute.
• Fails to notify principals of timing problems until the last minute.

Appraiser

• Will not return phone calls – is generally unresponsive.
  Fails to notify lender/agents of unsigned documents.
• Fails to collect needed data on a timely basis.
• Fails to get signatures from traveling principals.
• Loses paperwork.
• Fails to pass on pertinent information on a timely basis.
• Prepares final documents incorrectly.
• Fails to find title problems until the last minute.
• Fails to notify principals of timing problems until the last minute.

Inspector

• Frightens buyer.
• Infuriates seller.
• Not available when needed.
• Does not show up when scheduled.
• Is unfamiliar with property type.
• Makes mistakes – report is unreadable.
• Tells buyer one thing – records something different on report.