Everyone knows that loans are getting tougher to get, higher credit reports are needed and the strings just keep getting pulled tighter and tigher. But yesterday's closing (praise the lord) was UNBELIEVABLE and a sign of the current lender times.
Situation & Background: Townhouse, needs alot of updating work so we priced it below market $35,000. That's some kitchen & baths for the $35,000 so we begin marketing the house & didn't get any buyers til around the 90 day mark. Then the squirels came out of the woodwork almost at once! We finally accepted an FHA offer on the home, went thru appraisal, home inspections, etc. Then a wierd request from the buyers attorney: "We need the garage door opener replaced". Our reply: No thanks, works great, it's old, but tough noogies.
Closing Situation: Buyers are happy. Loan officer is present which always means trouble in my book! Find out about the garage door opener at the closing. The buyers had to put up a $500 FHA REQUIRED ESCROW for the garage door opener. HUH??? The loan officer happily replies to me that yes that was one of the required points to close or no deal. Sounds like highway robbery to me. Further asking I remind about the FHA appraisal re-inspect - OH YES, the buyers will be charged $200 for the standard FHA reinspect! But don't worry Lyn, they will take that out of the $500 escrow so the buyers won't have to come up with the funds!
This is where my eyes popped! For a garage door opener! Yes, the loan officer says, some small child might get squished, injured by that garage door opener (viscious, killer, garage door that it is - the seller should have known!). Yes, we should report that garage door to some felon website!
Well that's the story and the closing took 3 hours - What do you think? Has everyone just gone completely INSANE! UNDERWRITERS HAVE GONE INSANE PLAIN & SIMPLE TO ME. Where is everyone's common sense!
Your thoughts? Your situations?
I've tried to make this "rant" as funny as possible, but it's really 
just NOT FUNNY - it's ridiculous!
Lyn Sims RE/MAX Suburban (847)230-7324
Northwest Suburban Chicago IL areas of Schaumburg, Hoffman Estates, Elk Grove, Medinah, Itasca, Palatine, Roselle, Carol Stream, Bloomingdale, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles.
It might have been better had the loan officer called and explained that it was an FHA lender requirement because the door opener lacked the security device to retract if something gets in the way. I always ask why there is a request that seems unusual.
Lynn,
I am amazed that this is the 1st one you saw. In the old days when most of the deals were FHA I had the mental check list in my head as to what the appraiser might call, and that was at the top of the list.
The one that got me was the slow drain...yep...appraiser said that the drain in the bath sink was slow...no other drain, just that...
Happy Selling