It has to hurt.
Ok, when I tell you that strange things can happen in real estate transactions I mean it. So let me share with you a funny story told to me by an industry competitor. For the purposes of this story, we will call the borrower Ted.
This person is the every day worker…tough minded and focused on the task at hand. He had taken steps to buy a home and treated the process as the “great debate” the entire way through. Every lender request was labeled “stupid and dumb” and he made his opinion known with every fax and with every voice message. He knew more than everyone involved and his “process” was the only one that made sense. His belief was that Lenders should loan you money on a firm handshake and a promise. “My word is my bond” kind of person… Yeah, whatever…
Well, Ted was approved for his loan and it did not involve a Lender handshake. A closing was scheduled and all parties were notified. As the closing started Ted was not present…He forgot? No way…. 30 minutes late the door opens to the title company and Ted is directed to the closing room were all parties have been waiting sipping coffee and making idle chatter. His wife was visibly upset with him…In a soft voice she says, “Where have you been?”…. Ted then goes on to say….”We’ll let me tell you about my day…” As Ted is rambling about his day the stench of multiple 40 oz., Pabst Blue Ribbon beers fill the room from his breath. He is definitely buzzed… He goes on to say “And you know that supervisor Frank, I was telling you about? Well, he finally had his day… He smarted off again and I punched him in his nose.” The room went silent…was this drunken ramble or did this person just say he punched his boss today at work?
The closing agent then said, “You punched your boss?” Ted boastfully said “I sure did and believe me he deserved it…” His wife said “So where have you been?” Ted said “Well…I of course got fired so I relaxed a bit until closing…I guess time kind of gotta away from me.”
The room was then again silent. The title agent looked at the real estate agents and the mortgage consultant and said, “I think we have a problem.” The loan consultant looked up and said, “Oh Ted…hate to tell you this buddy, but not only did you lose your job today – you just lost your new house.” The closing agent shut her file of documents and left them room. Immediately Ted’s wife started crying and walked out…Meanwhile, Ted sat at the end of the table and tried to “debate” the term of gainfully employed and that he was fully approved. Ted unfortunately failed to understand that the lender underwrote him under the condition that he was currently employed with the same company and without punching his boss. Not to mention…he was under the influence of alcohol at closing.
Moral to the story #1…. Do not be Ted…. Ted is an idiot. When you sign for a mortgage or submit a loan application, it must be accurate, truthful and current. Anything other than that is considered fraud.
Moral to the story #2… Do not go to closing under the influence of alcohol. You are not of sound mind to sign legal documents and they will not close the loan under those conditions. Not to mention, if you are going to make that mistake – drink a better beer than Pabst Blue Ribbon.
Moral to the story #3… Do not punch your boss. You might feel better for about 10 seconds afterward, but you are going to feel worse when your wife finds out you lost your job when you get home.
