Top Ten Reasons Why Countrywide is Being Stupid With REO’s

[farbet]

Time and time again, I see Countrywide Home Loans (CHL) listing their Real Estate Owned (REO) properties on our local MLS and requiring buyers to get pre-approved with a Countrywide Retail Loan Officer prior to submission of their offer. In fact, in their required addendums, it is specifically noted:

If the Agreement is contingent on financing, as a sales condition, Buyer must obtain a pre-approval letter from a branch office of Countrywide Home Loans, Inc. (“CHL”) for a mortgage loan in an amount and under terms sufficient for Buyer to perform its obligations under the Agreement, and such letter must accompany the Agreement. The pre-approval shall include, but is not limited to, the pre-approval letter, a satisfactory credit report, and proof of funds sufficient to meet Buyer’s obligations under the Agreement. Buyer’s submission of proof of pre-approval is a condition precedent to Seller’s acceptance of Buyer’s offer. Seller may require Buyer to obtain, at no cost to Buyer, loan pre-approval as Seller may direct. Notwithstanding any Seller required pre-approval, Buyer is not required to obtain financing from CHL or Seller- Buyer may obtain financing from any source. As an incentive for the Buyer to obtain financing from CHL, CHL will offer a free appraisal and a free credit report if the Buyer finances and closes the purchase of the Property through financing from CHL.

This is ludicrously stupid for the following reasons (not a complete list):
http://www.aaronsold.com/blog/2007/12/top-ten-reasons-why-countrywide-is-being-stupid/

[SD Realtor]

First off… Have you ever bought a home from a developer?

The first thing they do (after they stuff a bunch of incentives in front of your snout to use the preferred lender) is tell you, you MUST be preapproved by the preferred lender even if you do not use the preferred lender… So your ire should not be limited to Countrywide.

Finally, nobody is twisting your arm to buy the REO from Countrywide. If you search for a home, and after looking and looking you find the home at the price you want that satisfies other requirements, and you walk because you don’t want to get preapproved a second time then so be it.

Let me tell you when I have a listing and the guy representing the buyer is a mortgage broker, I do not hesitate to advise my client to DEMAND a second preapproval from another lender for that buyer.

While there is no doubt that yes Countrywide wants the loan, regardless of the motivation, what they are doing is not out of the ordinary by any means.

[SD Realtor]

First off… Have you ever bought a home from a developer?

The first thing they do (after they stuff a bunch of incentives in front of your snout to use the preferred lender) is tell you, you MUST be preapproved by the preferred lender even if you do not use the preferred lender… So your ire should not be limited to Countrywide.

Finally, nobody is twisting your arm to buy the REO from Countrywide. If you search for a home, and after looking and looking you find the home at the price you want that satisfies other requirements, and you walk because you don’t want to get preapproved a second time then so be it.

Let me tell you when I have a listing and the guy representing the buyer is a mortgage broker, I do not hesitate to advise my client to DEMAND a second preapproval from another lender for that buyer.

While there is no doubt that yes Countrywide wants the loan, regardless of the motivation, what they are doing is not out of the ordinary by any means.

[SD Realtor]

First off… Have you ever bought a home from a developer?

The first thing they do (after they stuff a bunch of incentives in front of your snout to use the preferred lender) is tell you, you MUST be preapproved by the preferred lender even if you do not use the preferred lender… So your ire should not be limited to Countrywide.

Finally, nobody is twisting your arm to buy the REO from Countrywide. If you search for a home, and after looking and looking you find the home at the price you want that satisfies other requirements, and you walk because you don’t want to get preapproved a second time then so be it.

Let me tell you when I have a listing and the guy representing the buyer is a mortgage broker, I do not hesitate to advise my client to DEMAND a second preapproval from another lender for that buyer.

While there is no doubt that yes Countrywide wants the loan, regardless of the motivation, what they are doing is not out of the ordinary by any means.

[SD Realtor]

First off… Have you ever bought a home from a developer?

The first thing they do (after they stuff a bunch of incentives in front of your snout to use the preferred lender) is tell you, you MUST be preapproved by the preferred lender even if you do not use the preferred lender… So your ire should not be limited to Countrywide.

Finally, nobody is twisting your arm to buy the REO from Countrywide. If you search for a home, and after looking and looking you find the home at the price you want that satisfies other requirements, and you walk because you don’t want to get preapproved a second time then so be it.

Let me tell you when I have a listing and the guy representing the buyer is a mortgage broker, I do not hesitate to advise my client to DEMAND a second preapproval from another lender for that buyer.

While there is no doubt that yes Countrywide wants the loan, regardless of the motivation, what they are doing is not out of the ordinary by any means.

[SD Realtor]

First off… Have you ever bought a home from a developer?

The first thing they do (after they stuff a bunch of incentives in front of your snout to use the preferred lender) is tell you, you MUST be preapproved by the preferred lender even if you do not use the preferred lender… So your ire should not be limited to Countrywide.

Finally, nobody is twisting your arm to buy the REO from Countrywide. If you search for a home, and after looking and looking you find the home at the price you want that satisfies other requirements, and you walk because you don’t want to get preapproved a second time then so be it.

Let me tell you when I have a listing and the guy representing the buyer is a mortgage broker, I do not hesitate to advise my client to DEMAND a second preapproval from another lender for that buyer.

While there is no doubt that yes Countrywide wants the loan, regardless of the motivation, what they are doing is not out of the ordinary by any means.

[sdrealtor]

This is standard protocol with pretty much all banks. Most REO’s get several offers and before they accept one they want to make sure the buyer has the ability to perform. Whether they want the loan is not the issue. They want the property sold and they need to make sure the buyer is well qualified. The truth is, most pre-approval letters arent worth the paper they are written on. Can you blame them for making sure the buyers credit and assets have been checked out by someone they trust?

That top 10 list qwas obviously written by an inexperienced agent and surely one that has little or no experience with REO’s.

[sdrealtor]

This is standard protocol with pretty much all banks. Most REO’s get several offers and before they accept one they want to make sure the buyer has the ability to perform. Whether they want the loan is not the issue. They want the property sold and they need to make sure the buyer is well qualified. The truth is, most pre-approval letters arent worth the paper they are written on. Can you blame them for making sure the buyers credit and assets have been checked out by someone they trust?

That top 10 list qwas obviously written by an inexperienced agent and surely one that has little or no experience with REO’s.

[sdrealtor]

This is standard protocol with pretty much all banks. Most REO’s get several offers and before they accept one they want to make sure the buyer has the ability to perform. Whether they want the loan is not the issue. They want the property sold and they need to make sure the buyer is well qualified. The truth is, most pre-approval letters arent worth the paper they are written on. Can you blame them for making sure the buyers credit and assets have been checked out by someone they trust?

That top 10 list qwas obviously written by an inexperienced agent and surely one that has little or no experience with REO’s.

[sdrealtor]

This is standard protocol with pretty much all banks. Most REO’s get several offers and before they accept one they want to make sure the buyer has the ability to perform. Whether they want the loan is not the issue. They want the property sold and they need to make sure the buyer is well qualified. The truth is, most pre-approval letters arent worth the paper they are written on. Can you blame them for making sure the buyers credit and assets have been checked out by someone they trust?

That top 10 list qwas obviously written by an inexperienced agent and surely one that has little or no experience with REO’s.

[sdrealtor]

This is standard protocol with pretty much all banks. Most REO’s get several offers and before they accept one they want to make sure the buyer has the ability to perform. Whether they want the loan is not the issue. They want the property sold and they need to make sure the buyer is well qualified. The truth is, most pre-approval letters arent worth the paper they are written on. Can you blame them for making sure the buyers credit and assets have been checked out by someone they trust?

That top 10 list qwas obviously written by an inexperienced agent and surely one that has little or no experience with REO’s.

[NotCranky]

sdr, are you sending your clients who need to get qualified with Country Wide, or for any other lender demanding in house quaification, to a mortgage broker to get qualified, to a branch, online? How long is it taking?

[NotCranky]

sdr, are you sending your clients who need to get qualified with Country Wide, or for any other lender demanding in house quaification, to a mortgage broker to get qualified, to a branch, online? How long is it taking?

[NotCranky]

sdr, are you sending your clients who need to get qualified with Country Wide, or for any other lender demanding in house quaification, to a mortgage broker to get qualified, to a branch, online? How long is it taking?

[NotCranky]

sdr, are you sending your clients who need to get qualified with Country Wide, or for any other lender demanding in house quaification, to a mortgage broker to get qualified, to a branch, online? How long is it taking?

[Author]

Posts