Relocate to Wisconsin : "Back on the Market....Failed Financing" Doesn't have to Be !

"Back on the Market....Failed Financing" Doesn't have to Be !

      There are soooo many fingers that can point when Finger pointingfinancing fails.....the Buyer should/should not have/didn't... The Selling agent should....the Lender could...the excuses are many and our minds, very few of them valid if everyone does their homework.

    Once a long time ago in the darkest days of the fall of the market, we had a listing and the buyer lost his job the day before closing...everyone cried...for him, the Seller who thought they were was very sad and tGot your Backhat situation is no longer prevalent and to date was a once in a lifetime experience.

     We promise EVERY seller that we "have their back" in every part of the transaction. 


     Tell the Buyer's agent that the Seller requests a pre approval be supplied from one of the lenders on the list. There is nothing dishonest about this practice.  It is part of what we promise EVERY Seller...we want to be sure that when we (effectively) take your home off the market and it is "Active with Offer" or "Pending" is with  Buyer who has been approved by a reputable loan officer...not one no one has ever heard of...or worse...the Bank of the Internet.  They may flinch...scream accepted offeror threaten to leave the transaction...sometimes if they are "Buyer's agents" they know better...or the Buyer's Sister's Cousin's nephew is the loan officer and of course must be good. 

    At least half a dozen times in the past year.....we got "Pre Approvals" that were not what they appeared to be....the Buyer was either not qualified at all or needed a kind of loan not offered by that Lender.  We averted the "Failed due to a Financing" issue and do it every time.  It's easy.....make your list make sure the loan officer's name and all contact information is on it.  Make Points with the lenders and tell them they are ON YOUR LIST !  You may choose a variety of kinds of lenders who offer different Denied Loanprograms...a mortgage broker, a banker and a credit union for example....a specific loan officer and you are on your way to another safeguard for your Sellers.....and the Buyers even though they may not recognize it at the time. 

    This has been a professional service post brought to you courtesy of Sally K. & David L. Hanson, Broker Associates with Keller Williams Realty, honored to be of service throughout southeastern Wisconsin.



Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

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Comment balloon 16 commentsSally K. & David L. Hanson • July 30 2017 03:22PM


Good morning Sally K. & David L. Hanson ,

As a listing agent we do have to have our sellers back..check out that lender who is working with a buyer and have a conversation. Supplying a list of lenders is good but the buyer is not required to comply. I've not had a financing fall through in many years now..most of the lenders working with the buyers I'd use id working with a buyer.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) 11 months ago

I like the idea of supplying a list of lenders. I always (as a listing agent) have one. Some buyers agents appreciate some get all "attitudie" about it.

Posted by Marco Giancola, Realtor (305)608-1922, Miami Beach Florida (Beachfront Realty) 11 months ago

HI Sally and David - you said it right.  Everyone must do the homework and stay on top of it until closing day.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 11 months ago

Sally and David surprises do pop up, but they should be rare if the LO does his/her job correctly.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) 11 months ago

I am dealing with this right now as a matter of fact.  The so called "Done Deal" wasn't really a done deal after all.

Posted by Belinda Spillman, Colorado Living! (Aspen Lane Real Estate Colorful Colorado) 11 months ago

So many things can go wrong.  I have done many inspections this year on houses where the previous purchaser fell out due to financing.

Posted by Jay Markanich, Home Inspector - servicing all Northern Virginia (Jay Markanich Real Estate Inspections, LLC) 11 months ago

I really dont like the things i can not control and teh mortgage process is one. I have a closing this week and the buyer just got laid off, closing will be off come Monday Sally K. & David L. Hanson 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) 11 months ago

Sally and David- it sounds to me like you are doing what you tell your sellers you will do...and that is making sure you have their backs covered. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 11 months ago

There are some lenders that we know if a Pre-Approval letter comes from them it is the Gold Standard, the  Escrow will close... there are others we never heard of...well it depends...Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 11 months ago

Each party has their job to do and all it takes is one to fail to mess up the works!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) 11 months ago

It is hard on everyone when that happens especially when getting approved could have prevented it.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) 11 months ago

Good morning Sally.

The excuses have no limits or bounds.  If something goes south I have only one person to blame,  It is the face I see in the mirror each morning

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty AR LLC) 11 months ago

Sally & David, I too be very careful when receiving this piece of paper to ensure it does mean their borrower is pre-approved.    Don't want to get to the finish line and not cross!  

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 11 months ago

Sometimes those pieces of paper cannot even hold the ink long enough to get through the process. Good message here Sally!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 11 months ago

Hi Sally and David -- so much of life in real estate is double-checking, crossing t's, dotting i's and asking lots of questions.   Sometimes stuff happens but often there is a reason.   Investigate wisely.  

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) 11 months ago

I wonder how many "failed financings" point back to a home that didn't appraise?

Posted by Cheryl Dukes . . . . . Intown Atlanta (Solid Source Realty, Inc.) 10 months ago