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Super Bad

I’m ready to start reliving my nightmare of a closing from last week.  This might take a few days, however, as it was one of my worst ever.

Straight off, please know that my client, the lender’s attorney, and the title closer were three lovely women who were all professional, courteous, and patient.  None of the blame for the multi-hour fiasco lies at their feet.

My client was purchasing a home from owners who were selling their home “short,” meaning that they wanted to send the bank less than they owed on their two mortgages (this would mean that their credit rating took less of a hit than if the home went into foreclosure). She’d waited since early summer for the two mortgage holders on the property to accede to the proposition to accept less than due.  One of the real estate agents told her that there was a hold-up as the second mortgage holder wanted $1,000 more than the sale would yield, and would she kick in the extra money?

My client, being very nice, agreed to pay the $1,000, even though that was more than the home appraisal found the house was worth.

I’m skipping all the ghastly details in between (more will follow in the days to come, I promise) to get to the part near the closing’s conclusion, when the paralegal appearing for the sellers and the listing agent had to get final approval from the mortgage holders of the funds being sent, so that the title company would be assured that Satisfactions of Mortgage would be issued.

It seems the estimations used to obtain approval and the figure the sellers were actually netting after closing costs were different, and the authority figures at the bank (the holder of both mortgages) wanted to “review everything” over the next 48 hours before issuing final approval. [Did you catch all the Egad! issues in the past two sentences?]  In the nasty and contentious manner they’d be employing for hours and hours at the closing table, the paralegal kept shouting to the agent on the phone with the bank rep, “Tell them they’re getting $4,000 more than we figured! They’re getting $4,000 more! MORE MONEY!”

Then the same agent who had appealed to my client months ago to contribute $1,000 more towards seller’s obligations because there wasn’t enough money to make the deal come together yelled into the phone “Don’t you understand that we padded all the estimates we gave you? Since we have too much money, there’s no problem, because you’re getting it all! We’re giving you $4,000 EXTRA!”

The buyer turned pale as my attorney instincts reached their apex.



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April 2019


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