Naples Florida Real Estate: Your Out Of Area Lender May Not Know Your Contract!

You should know it is your (the buyer's) right to use whoever you wish to loan you the money on the property you are attempting to purchase BUT just because out of area lenders "can" loan you the money, does not mean they are well versed on the terms of the agreement you signed.

In fact, it's not unusual that not only are they unfamiliar with the terms of your agreement they also don't ALWAYS read the terms of your agreement even though they have your contract on file.

Sound weird? 

Here's an example.  Under some promulgated forms across the country there can be clauses that read something to the effect of an additional time frame allowed for closing to clear lender required obligations etc. 

Under the Naples Area Board Of REALTORS sales contract, there is no clause of this nature.  Meaning...your lender must have all of their obligations met in order to close the transaction on or before the date described in the contract.  PERIOD.

A reputable local lender knows this to be true and will always perform to that obligation or at least alert the buyer and/or buyer's agent that there may be a problem with the understanding of the repercussions that could exist. 

An out of area lender may know this to be true provided they read your contract but...every once in awhile there's a BAD ASSUMPTION that clause for the extended timeline "must" exist...which as we now all know....now....it does not.

So for those of you thinking...hmmm...well Shan, how bad could it be???? 

Well, if closing does not take place on or before the closing date, the seller has the right to terminate the contract and all deposits made shall be paid to the SELLER for liquidated damages due to lack of performance of the buyer.

This doesn't mean that this will happen...this means that it COULD happen at the sole discretion of the seller.

Now...with that said, do you want to leave the decision of where your earnest money ends up to the seller should the deal go south or would you like to have a better handle on the transaction? 

There are times when the seller has a good heart and agrees to extend closing.  I've seen it even in hot markets although the actions of the seller should be considered generous. When the market is hot this becomes even more of a problem because buyers are a dime a dozen.  When the market is cool...it can become less of an issue for fear that another buyer is not within close reach but it should never be assumed. 

There are times when I can call your out of town lender and catch them up to speed about the fact that they could be putting you (the buyer) in the position of quite possibly forfeiting your deposit for you and with that little chat...they can sometimes pull it together for you so that doesn't happen.

It's all about amicable communication when it gets to this point provided the lender returns my call promptly which doesn't always happen.

The good news is, should you find yourself in this position during my watch...I'll do what I can to assist you.

The better news is: Although it is comfortable to work with someone you already know, sometimes it wiser to go with someone who knows the art of the deal more so than you personally.

I have a great lender.  He's never let me down.  I'm happy to share his name and number with anyone I'm working with.

Now for all of my out of area lender friends out there.  This is not a lender bashing post.  This is not a post to say that anyone working outside of Naples is miserable and unworthy of working loans within Naples. So please don't be offended as this is not a personal attack on you, your colleagues or your industry.  Heaven knows there are plenty of agents within your state and way out of your market who would be happy to help you buy and sell and who are absolutely not the right person for the job of doing so. 

That's why you'll find the people in both industries taking on only what they can provide an exceptional service doing.