Unpleasant experience with RE agent

J

Jen_PFR

Oh my gosh. We had a run-in with a RE agent today and I just have to vent!

Short story: Put an O&A in for a 3x1 in Balcatta, which was accepted. 28 days to finance, 21 to settlement, plus the usual subject to items (finance, etc etc). Anyhow, while our financial institution would lend us the money, the organisation extending lender's mortgage insurance wouldn't cover the LMI component. As a result, we couldn't get finance. :(

We had to ask for a week's extension while we looked at all our options, but it was sadly no go. We were disappointed as we feel it's a great time to buy and we really liked the property - it was ideal for what we do. Anyhow, my husband sent an apologetic email to the RE agent this afternoon explaining this and saying that the only option would be if the vendor dropped their price by X amount (not an unreasonable amount by any means). Obviously not an ideal option, but it would allow the matter to proceed to settlement.

Well, the agent called my husband and was incredibly rude to him - said he'd require a letter from our financial institution indicating they wouldn't extend finance (which of course we are happy to provide), and went on to say that the email we sent was 'disgusting' and that he considered we were lying about not being able to secure finance!! :eek: He also said 'did we expect (him) to go back to the vendor, after a week's extension and tell the vendor that we didn't get finance?' Umm.... surely it's not the first time you've ever dealt with this situation?!

I am honestly amazed at the way that he's reacted. We are always professional when dealing with agents - you never know when you have to buy your next property from them! But the way he was yelling at my husband and basically throwing a tantrum was completely unbelievable. I must admit my hubby ended up hanging up on him, not something we would normally do but under the circumstances I think reasonably understandable.

At this point if the property came on the market for a dollar and it was his listing, hell would freeze over before we bought from this agent again.

What is even more amazing is that he runs his own agency!!! You would think that you would be very aware of the impact your behaviour would have on word of mouth reputation, but apparently not.

Anyhow, rant over.... congrats to those of you who made it through! If anybody wants to know the name of this northern suburbs agent and/or his agency (basically the same thing) please do just PM me and I'll be happy to let you know.
 
MM?

Sorry to hear you didn't pass LMI scrutineering. I didn't either for Highgate so I've had to throw in 20% so I don't need LMI. I was deemed too commercial for their LMI company. Same with you?

Did you see the 2 duplexes on Karrinyup Rd for sale? Nice little units.
 
Report that agent to the Consumer Protection regulatory department for unprofessional conduct.

That sort of behaviour really should be a breach of the REA Code of Conduct.
 
as an aside

28 days ................

Im known to be slow , but to get to the LMI gate in 4 weeks and not have capped lmi............sounds a major worry especially if the deal needed that in the first place.

Usually, lmi cap is or isnt a deal straight up

What was the challenge ...................... one challenge straight up is using a lender that cant underwrite LMI under its own DUA

note my post here isnt a go at anyone, just to help others that may see it.

Rude and inconsiderate folks inhabit all sorts of job roles, including sales : (


t
arolf
 
Thanks thatbum, we're actually considering it. We're not usually vengeful but the way this turkey carried on was really amazing.

Rolf, thanks for the feedback/query. I'm a bit hazy on the LMI side of it, but here goes: All our properties are through the same lender (yes, a mistake I know). Anyhow, as we've got to the 2M mark, the lender was a bit tetchy, but the key issue was the issuer of the LMI, which is a different organisation.

Hope this all makes sense!

Anyhow, we're picking up the pieces - next time we'll obviously look for a different lender (BoQ looks good at the moment, 95% lend, low interest rate, low entry/ongoing costs) and will ensure we have sufficient cash reserves. Live and learn I guess! ;)
 
Jen_PFR said:
Anyhow, we're picking up the pieces - next time we'll obviously look for a different lender (BoQ looks good at the moment, 95% lend, low interest rate, low entry/ongoing costs) and will ensure we have sufficient cash reserves. Live and learn I guess! ;)
Click to expand...

BOQ I recall doesnt have its own LMI DUA either.

If you are currently with a lender that uses QBE for LMI ( ie Bankwest as an eg) then the BOQ thing isnt going to be helpful and will just further fry your CRAA file.

Not hassling, just wanting to prevent (to what is potentially obvious to me ) tears

ta
rolf



ta
rolf
 
Jen_PFR said:
All our properties are through the same lender (yes, a mistake I know). Anyhow, as we've got to the 2M mark, the lender was a bit tetchy, but the key issue was the issuer of the LMI, which is a different organisation.

Hope this all makes sense!

Anyhow, we're picking up the pieces - next time we'll obviously look for a different lender (BoQ looks good at the moment, 95% lend, low interest rate, low entry/ongoing costs) and will ensure we have sufficient cash reserves. Live and learn I guess! ;)
Click to expand...

With 2M in lending, you need to be looking at 3-4 lenders which have their own underwriting authorities. You also need to be doing 90% LVRs instead of 95% otherwise it will often end up with the lenders insurer anyway.

You're essentially at the point where you need to be very strategic about your lending otherwise you'll just get continual knock backs from both lenders and insurers.
 
Hi PT Bear, could you elaborate a little please? We have over 3 million debt with the one lender (Commonwealth,) and have never had any trouble. What are the benefits of having 2 - 3 lenders?
 
The agent has most likely lulled the vendor into thinking he would get a certain price. By going back and having to say there is no sale unless you lower your price makes him look bad.
 
Travelling said:
Hi PT Bear, could you elaborate a little please? We have over 3 million debt with the one lender (Commonwealth,) and have never had any trouble. What are the benefits of having 2 - 3 lenders?
Click to expand...

As is common with this sort of thing, you dont have a problem until you have one..................

These are the ones we inherit, most often from bankers ( who obviously need to look after the bank first, and sometimes from brokers who think like bankers and or dont think period, and dont appreciate that the broker is the agent of the borrower and not the lender,and are in many ways being negligent with their structuring advice.

and then, usually its relatively easy to fix, but in some instances its a killer to the extent that the borrower needs to sell down some of the portfolio, and rebuild, or sit for a few years ........

I will let Pete go into details about serviceabiliy, concentration risk etc

ta
rolf
 
Thanks for the guidance Rolf and Peter, it is very much appreciated.

We have been with a mortgage broker for a while now who seems to have relatively few really competitive financial institutions under their belt. (The key one we've been going with is ING.) I must admit that we were dealing with a really great guy but he left about two years ago and we've not been bowled over with the service since then. Also, it does concern me that as you say Rolf, the current guy didn't seem to realise that there would be any problems with the LMI underwriting the loan.... surely this is the kind of stuff that brokers should be anticipating?

Anyhow, we have already agreed it's time to move on in terms of mortgage brokers.... you guys may well be hearing from us!! :D

Thanks again for your help. And to everybody else for their interest - I am horrified to find out that this isn't an isolated incident in the real estate agent world.
 
An option we used early on, when no LMI would touch us, we asked the vendor to hold a second mortgage..also known in Canada as a Vendor Takeback. We paid the vendor a certain monthly amount, at a certain interest rate.
We actually paid it off early. It wasn't a huge amount, but we just couldn't qualify for any mortgage with LMI.
 
ING is the wrong lender for your situation,

option of staying with ur broker, showing loyalty but not building your portfolio or swithcving to Rolf and getting the deal done, and may after by PLANNING your finance many steps in advance
 
In defense of the agent - we all have %$#* days and they are only human.

I'm usually cool, calm and collected (do I hear my hubby scoff?) but have on occasion "lost it" when the recipient of my wrath was just he last straw in a awful day/week

Remain professional and perhaps -with $3mil in borrowing but unable to put down a 20% deposit - you need to pause for a moment and build up some equity
 
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