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[Sticky] Why we have a Do Not Use List  


Larry M
Posts: 11
Admin
(@larrysflgmail-com)
Broker
Joined: 4 months ago

Real estate transactions are complex processes and usually involve many different participants, all of who need to do their job properly in order for the transaction to successfully close.

Depending on the type of transaction there can be various functions that need to be carried out and individual functions can involve multiple people. Some people and organizations are unavoidable and must be worked with in a particular transaction - such as the listing agent, HOA or Condo management and specific appraiser assigned if it's financed. Most other players in a transaction can be chosen by at least one of the parties to the transaction.

Everybody makes mistakes, especially in complicated processes like real estate transactions, but some companies and individuals are just so incompetent and/or have such poor customer service, or charge outrageous fees and prices and in extreme cases are outright fraudulent, that they should be avoided whenever possible. Real estate agents work very hard to put transactions together and bring them to closing. Even when everyone involved in the transaction is good, many things can go wrong. With competent people involved, most problems can be solved. However, a single incompetent key player can wreck the entire transaction and cause the complete loss of time and in most cases, money, for everyone involved.

The most common and potentially dangerous and costly participant in a financed transaction is the mortgage company, and there are many bad ones out there. Fortunately, there are also a lot of good ones, but buyers often are lured to problematic lenders by misconceptions, lack of understanding of the process and even bad referrals. Home inspectors are also a common source of problems. Title companies and attorneys can wreck a transaction as well, though the majority of them are at least neutral to work with.

As an agent, you will make your life in this business much less stressful and more profitable, plus save your customers and clients a lot of grief and money by using competent players whenever possible. At the very least, you should avoid using the worst ones out there when you have the option. That is where this list comes in. The worst people and organizations we've encountered along the way will be on this list. Anyone that makes it on the list and then improves, can be subsequently removed.

From a company standpoint, we should not accept PQ and Pre-Approval letters from any Mortgage Companies or Loan Officers on the list. If we have the listing and an offer is received with a Pre-Approval or PQ from someone on the list, it should be treated as if no Pre-Approval was provided and the buyer should obtain a Pre-Approval from a competent lender. When a title company on the list is involved, agents will not be able to get paid at closing. In all cases, when our agent has an opportunity to guide the selection of various transaction players, they should never recommend the use of any person or company on this list.

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