I may be crazyJoe Cornotype keywords here..SEPERATE BY COMAS ONLY(,)
I may be crazythat sounds like a soft rock song I used to sing.
However, I may resemble crazy, at least in regards to some of those
who read my articles. Every once in awhile, I get an e-mail that
makes me do a double-take on what I am telling the industry through
my printed words.
Most of the mail is flowery and sweet to my eyes"This is great!"
and "I am blown away, man!" Of course, I appreciate the accolades.
What I look forward to is the one that will take a position of
defense or defiance and challenges the concepts and systems spread
across the magazine pages.
The "I respectfully disagree. and "No way, dude!" statements are
my motive to write ahead of the curve, so that I know I have made
an impression. The nicely-worded, yet disapproving mail lets me
know that I touched a sensitive spot, and it has gotten someone to
think about what has been written. I may actually have people
burning some gray cells and thinking about how they do
I received an e-mail recently that questioned keeping everyone
involved in the transaction informed. This includes the real estate
agents. The letter expressed that borrowers, in past loan
transactions, told the originator not to tell the real estate
people anything! The originator wrote that it was his job to serve
the borrower and that the agent does not have to be informed.
This may be a potential fraud issue waiting to be filed and
pursued. As an originator, what valid reasons, including privacy,
would keep you from updating others involved in the transaction?
What if something happens that could constitute a "deal breaker?"
My challenging pen pal uses the following scenario: The buyer, whom
the sales agent referred, instructs you not to disclose personal
data to any down-line or up-line agents namely, the sellers' agent.
Your buyers are selling "for-sale-by-owner"(FSBO), and when they
sign a contract while processing the loan, it is evident that they
will not be able to qualify. Who do you inform?
I decided to send the above yet-to-be-completed article to the
dissenting new pen pal. During our correspondence, I found that I
was exchanging blows with a 26-year veteran of the industry. The
e-mails were enlightening, and I gained knowledge from someone that
does business very differently than I do.
The response to my invitation to complete the article is
summarized like this: "What if you are just doing the purchase loan
that the agent is involved in and you have nothing to do with the
buyers of the FSBO at all? I actually do not have an answer to
this. How would I handle it? I do not want to be involved in
subterfuge, no matter how minor."
My response is to place yourself in each persons role for a
momentthe sellers of the new purchase, the agents, your buyers and
the declined, deflated FSBO buyersand ask yourself: Who would not
want to know critical information? Withholding the inevitable bad
news is a greater act of subterfuge than respecting your borrowers
wishes and feelings.
You are not violating confidentiality or privacy laws because
the FSBO transaction failure is not a personal or confidential
piece of data. It is, in fact, a key element to a series of legal
transactions and impacts various people and plans.
Everyone involved should be aware of the current status. By
withholding such important information, it only gets worse every
moment you delay. At the very least, you may become a target for
ridicule and negative comments. You may open yourself up to
potential defrauding and non-disclosure litigation, and your
license to do business will be in jeopardy.
I may be crazy, but I would immediately be sending the status
change to all those involved and would be representing every party
in the transaction that I am financing. This, in itself, will
eliminate undo burdens and emotions.
I realize that our scenario does not have the intent to
defraudor does it? If the wishes of your buyers cause damage to
someone involved in the legal transaction, we have the makings of
pretty good, legal action. Of course, your buyers will stay by your
side and admit all conversations that they had with you, right?
Your buyers will position themselves for their own protection
and preservation for obtaining a return of their earnest money
deposit. In being swift to inform and communicate with everyone
involved, you circumvent any cause of your withholding something
crucial to the parties. I am not an attorney, nor am I quoting law.
I am explaining the importance of always making the right choice.
Always, always take the higher road and make the right choice.
Joe Corno is president of Utah-based We Be Consulting and
Seminars. He may be reached at (801) 836-2077 or e-mail [email protected]