Think Globally; Borrow Locally

Okay – It’s 5:30 P.M. on a Friday, and the phone is still ringing.

One of my escrow officers is being asked by a purchaser who closed this morning why his deed has not been recorded, which means he can’t move into his new home.
It didn’t have to be this way.

We had four purchase closings this morning – not a particularly busy day when you consider it’s the last day of the month, but it’s winter and we’re in a somewhat slower market.  All went well.  Papers were signed, documents were notarized, three out of four deals have been recorded, and three of the four purchasers are taking possession of their properties, and some are moving in.

So, what’s up with the fourth closing?  Why is that purchaser upset?

Well, his deed hasn’t been recorded because we have no lender money.  His lender hasn’t wired his loan proceeds into our escrow account, so everything has come to a grinding halt.
We’ve called – no answer.

We’ve faxed – no response.

We’ve emailed – again, no response.
The problem?  We’re dealing with a lender that the purchaser found on the internet.  In this case, the lender was located on the West Coast.  If the wire was ordered at 1:00 P.M. Pacific time, it was already too late for us to record, because it was 4:00 P.M. in Charlottesville, and the Court House had just stopped recording.  Hence the buyer, the seller, the realtors, and all parties counting on a completed settlement are left hanging until Monday.  Had purchaser #4 chosen a local lender, I can only imagine how differently things might have turned out.

So why do some buyers often choose lenders that are based so far away?  My guess is that many people feel they can get a slightly lower interest rate on “the net.”  However, in my experience, I have found that local lenders are more motivated to satisfy their customers.  Is it because they are hoping for repeat business as buyers either purchase larger homes for their growing families or downsize as their children move out into their own homes?  I can’t say.  But they consistently provide loan papers and loan funds in a timely manner so that the deed can be recorded on the actual settlement date, thus satisfying all parties.

I can only wonder now if purchaser #4 thinks his choice was worth the aggravation and expense of waiting three days to move into his new home.


Please Note: Articles written by CST employees are the opinions of licensed title insurance agents and are based on experience as such.  They are not to be taken as legal advice.