Mondays are bad, but it would seem the Monday in the last week of the month hit an all time record for crappy. I always call buyer's agents the third week of the month to check on contracts and make sure we are on track to close, making Monday in the last week of the month what I am now referring to as BOOM day. Six agents signed extensions taking the closings into July - and AMs don't like it when I trash their month. But - how about FOUR contracts that just blew up? I blew up two with the same AM yesterday - oh ya - he was ticked, but sent me an email regarding the last two I had set for the 29th. One agent confirmed the deal would close on the 29th (cash) but the other one, who avoided me last week (not ever a sign that it will close) sent me a termination. So three deals blew up with the same AM, on the same day. The agents writing me contracts are trying to take my props FHA - I tell them when they write - investigate rehab financing cuz this is not going FHA - I tell the AMs - this will not go FHA - but they take the offer anyway. So here I sit - submitting terminations - and it occured to me that BOM (back on the market) just needed one more "O" to express my month. Buyer's agents please!! If you are gonna try and take a property FHA - call the lender, give them a list of issues you see during a walk thru - and yes this means paying attention while showing a house - and see if any of the issues are gonna be a red flag. Now, I will say with the deals that shifted to July, the buyers are going to rehab loans - but - I truely wish that these deals would have started that way. Just 20% of the buyer's agents out there need to fill out a job app at Walmart - cuz real estate is not something you do well. End of Rant.

What a nightmare! Sometimes you fell like the buyer's agent is just playing at this, with no genuine intention of closing a deal in the first place. Imagine if there was some kind of penalty for them (as if not getting paid wasn't enough), then you might see some follow up.

To quote a former President, "I feel your pain".

I am starting to believe that part of it is the BA is so desperate to have the hope of a commission coming in that they convince themselves that the deal will work.

Right now we have cash buyers and we have FHA finance buyers using mortgage brokers who will tell the buyer anything also with the hope of getting a commisssion. Very little conventional going on.

As of right now, if we see an offer written as conventional we check everything to make sure it is not a bait and switch to FHA later.

I'm in the same boat but just with 2. On one, the buyer's agent called me before even showing the property and I cautioned him to check with the lender before even writing an offer. Turns out the buyers were using a remote (translate that to online lender), he took the buyer's word and then it failed at appraisal due to condition (Which is what I told him way back when). Then a 2nd lender, new appraisal and credit disputes show up on the credit report.
This agent (he's a really nice guy, by the way) came about 30 miles to show this property to buyers who lived just a few miles away from the property.
Now I have the closing coordinator for the AM company calling and threatening every day.

That gig at the drive in window looks beter and better

When lender, AM, and BA all three fail to heed my warning that the property will not go FHA, I make sure to save all of the emails. Sometimes I forward the email back to the offending party as things start to go wrong. I know that is not always productive, but it does make me feel a little better. Eventually, I hope to bring some of the lenders and AMs around to the point that they, at least, understand that they should be listening to ME--because I have actually been IN the house and they have NOT!

What to do about other agents, though, who should know better than to bring FHA financing to a non-FHA-able property? Remember the transgression, that's what I do. My market is relatively small, so most local agents at least recognize my name. After they've brought me one failed deal, they will have to face the music for any future deals they bring. You'd better bet that I remember who THEY are and will remind them of the previous encounter.

Interesting so many extensions due to lack of knowledge of FHA financing (and don't forget VA-much stricter), and, that's probably what it is. Most agents in my area have NO idea of financing at all. It should be a requirement to have a general knowledge of financing, what's an acceptable property for financing, etc. Not heavily detailed but you've got to have the basic knowledge to assist your buyer (b/c the r.e.board will say, "[you] should have known." That's almost a slogan with them.

My latest AM's property is now on its 3rd buyer. You all know the Listing Broker does NOT get to choose the acceptable bidder. The first B/A had a buyer with conventional financing. His appraiser came back with "fix the problems". Kitchen/bath cabinets GONE, carpeting GONE, front porch GONE, siding GONE, sections of drywall GONE, holes in drywall, plumbing not connected. Any agent with a bit of mortgage intelligence would have known it couldn't go conventional. B/A said, "Well, we told the bank it was a HUD home." [Not all HUD homes are uninhabitable pieces of crap, but this one was. Newer home - just missing some things.] And,as stated previously in an earlier post, the danged AM SHOULD have known at least when I sent the pictures of issues and repairs. But, THEY tell me HUD is the one who chooses which bid to accept (any verification out there - anyone?). 50 days this drug on, then they went with the 1st backup offer.

The 1st backup was an investor, and, as investors go, most DON'T view the property first. Their agent just slings offers out there like mud on the wall to see which one sticks - THEN, the investor looks at the property after winning the contract. This one looked at it the same day of bid acceptance and his butt was out of there. I gave the B/A a little piece of my mind for wasting everyone's time.

Two days later, we're on the next backup offer! We'll see how this one goes.

As long as the contract has NOT been sent to the AM, the bidder can back out without penalty. Let's just waste everybody's time. And, yes, that B/A is definitely on my watch list.

But I'm in full agreement, agents LEARN a little bit about FHA, VA and Conventional financing - what constitutes a livable home and what consitutes "issues" for an appraisal.

We have a slogan in our office...Conventional is the new FHA...

I'm singing the same song here. BAs bringing FHA/USDA offers on properties that likely won't qualify for a 10-cent loan.

Total waste of time; but yes, despite warning the AMs, they're just seeing the $$ offer amount, and not much more. Do the AMs NOT recognize that these buyers have NO money, NO reserves, can't even front the appraisal fee-- and they're making an offer on a money pit? I can understand that buyers are crazy, but BAs shouldn't be, too. And the lenders who're telling buyers "no problem!"-- give me absolute fits.

Or, bring me an FHA offer on a ramshackle property AND ask for an ALTA survey, a home warranty, and 20-day inspection. Even though I've told you repeatedly it won't fly. You will disappoint your buyers, you are wasting my time and yours.

LizL-- so, what do you do with repeat offending BAs? Do you not submit their offers? You say they'll have to "face the music" with you after a failed deal-- what does that mean?