Real Estate lenders behaving badly

    While there are many stories, most true, about those who are in sales, the story I received back from about some clients we were referred to will shock you.

    In real estate, when a client, prospective home buyer/seller are being charged a fee for something real estate related, those fees, for the most part, are negotiable.

    While most clients won’t show stress over the fees (home buyers closing costs) for Title insurance and escrow, because they are typically set by purchase price, they will ask for the best deal from their lender.

    If selling – they will ask for the best deal from the real estate agent they are interviewing – to be fair.

    This happens to be the case if the lender they are using is a referral from a family friend, a lender they have used in the past or one they were tied to when searching on a real estate syndication website.

    The later was the case in our scenario. One in which I had a couple, whom wanted to buy a home in Valencia, specifically the Northbridge area of Valencia.

    When we met in my offices, they said the lender they had contact them was as a result of them searching on Zillow.

    They said they also had several real agents contact them also, but all seemed too pushy. I was found via a long tail internet inquiry about gated homes in Valencia CA for sale.

    The misses(Joan) also told me that she found my Santa Clarita real estate blog and did a lot of reading. She personally liked what I said about real estate agents needing to take the time to meet with a home buyer or seller before the first stroke of the pen was made.

    Most agents are in too much of a hurry. Wanting to get paid. This is a mistake and does not provide for long term clients and referrals.

    I teach this, but most new agents don’t listen very well.

    I did not know the lender in the case of these buyers. He is not a local real estate lender and I had not heard of him. I had no direct experience related to how he operates. (disclaimer 🙂 )

    I wish he would have been local. I called to check in on the buyer’s loan. The lender told me he cancelled the file a couple of days prior to my phone call.

    BTW – this lender was located a short 5 hour drive away from where the buyers home was located. – Sacramento CA.

    When I asked why, he responded the buyer called him and threatened him that he wanted to shop around for a better interest rate and fees.

    I was confused, I inquired again for more clarification – “So, let me get this right”, I said, “The buyer, whom was using you to get a loan for the home we are in escrow in called you asking for a better deal? And when you could not get them what they wanted, you took it on yourself to cancel their loan???”

    He said, “in a way, yes…” I asked him to explain because it was not making sense. I have never had a lender take it upon themselves to ‘cancel a loan’ because a home buyer did not like the fee’s being charged and wanted to shop around…

    This lender explained again and that was indeed the case. They took it personal and cancelled the loan without further notice to the buyer, the escrow company, me (their agent), and the other agent representing the home seller – they just did it.

    Upon speaking with the buyers, it turned out they just wanted what was promised to them in writing! – Yes, the buyers took my advice and followed a phone conversation with this lender with an email which he responded to. (listen to the broadcast – see why this is very important).

    The lenders actions caused a lot of pain. The real estate lender getting their back up was painful for the home buyers. In this case the buyers made amends with the lender after I got involved and after I told the lender how his actions did not benefit the home buyer. I stated to him, let’s work together to give them what was promised.

    I don’t expect emotions from the professionals involved in the real estate transaction. The real estate lender, the escrow officer, the realtor, and others involved should not get emotional and do things they may come to regret. Especially things that could injure the home buyer.

    Home buyers want to buy a home. They want what is promised to them. Home buyers desire to do the right thing but won’t get taken advantage of in the process.

    I certainly hope you enjoyed this article about how parts of the real estate process can have a immature emotional component. Be safe – reach out to me when you are ready for assistance when it comes to real estate. I will sit down with you at my Santa Clarita office or at another location and we will build a real estate game plan together.

    I’m Connor MacIvor with REMAX Gateway and I’m glad to be of great service to your real estate needs.

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. is where you will find over 10,000 real estate articles. Go to to listen to their latest real estate radio broadcast.

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