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A genius here, a genius there, genius, genius everywhere!

I just lost a mortgage loan and the way I lost it was interesting.

First, the clients signed an agreement to buy an empty, somewhat run down, Fannie Mae foreclosure as a second home in an area of Florida that has zillions of listed places.

The genius buyer agent had them sign the contract that only allowed them 10 days to do all their inspections and mortgages then their deposit money became non-refundable.

I pushed to get the mortgage through.  First problem, this genius did not give the buyers an estimate of closing costs, did not want to coordinate anything with the title company and made it hard for me to get the costs so I could give the buyers the right estimate of costs.

Then, the lender that I brokered this to decided that they would micro-underwite this loan where the people had 30% down, 800 credit scores and a 25% back end income ration.

So, I asked that they get an extension.  The answer:  The 

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NPDC REO Sales | Sales Representative at Fannie Mae at told me to go pound sand.  They will keep their money and put it back on the market.

What a genius!  Let’s see, give my people a few days to have the Fannie Mae lender who is being told to inspect every nook and crany of the buyers to make sure the loan is perfect or rip them off for a few bucks and put the place back on the market for another year.

And the genius real estate agent?  He never fought for his customers.  He just gave me crap.  The listing agent?  Never got a return email or phone call from her.  I guess she was too busy listing other crappy property.

So, to recap.  There is an empty house owned by all of you via Fannie Mae.  The buyers are out a house and money, an agent wasted his time and made no money and there is another POS house in the market in a depressed area.

So many geniuses.

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Written By

Realty Reality! That describes Fred, a sharp witted and outspoken realist for the mortgage and real estate world who has appeared on CNBC and NPR's Marketplace along with being quoted in the New York Times, The Wall Street Journal and other media outlets. Fred is the CEO of U S Spaces, Inc/Arrivva (a real estate brokerage firm in PA, NJ, DE and CA) and U S Loans Mortgage Inc (mortgage brokerage in PA, CA, FL and VA), and serves on the Board of Directors and is the Federal Legislative Director for the UpFront Mortgage Brokers. Fred is also the co-creator of real estate startup, a mathematically driven rental search engine. See everything Fred at



  1. Bob Wilson

    October 18, 2010 at 11:13 pm

    In Florida the agent has no fiduciary to the buyer, correct?

  2. Joe Loomer

    October 19, 2010 at 6:50 am

    Our industry is replete with “hangers-on” who took part time or full time jobs to make ends meet while awaiting some miracle recovery that will not happen. These are the 10%ers who should never have gotten a license in the first place, and do not know the meaning of the word “fiduciary.”

    In my mind, an 800 score, 30% down, and 25% DIR means another intelligent, fastidious, articulate couple out there telling folks who NOT to use for their real estate. Gives us all a black eye.

    Navy Chief, Navy Pride

  3. Rob McCance

    October 24, 2010 at 3:41 pm

    The 10 days is where is all broke.

    Even if everyone cooperates, 10 days won’t cut it because of the appraisal.

    I’ve never seen a Mortgagor get this done inside of 10 days, even if everything else is perfect and ready to go.

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