Litton has statements in their approval letter that leave things wide open for seller.


I was surprised to see how many great comments there were about Litton.  Yes, their fast but how many of you read those approval letters? 

 

My approval letter leaves the seller wide open for all kinds of fee's at their will.  Fee amounts that are not disclosed.  No way would any seller agree to this and it puts the buyer in a bad position too.  

 

Litton also stated they will not provide any other offer letter.  We have a finance contingency with the buyer and Litton doesn't want to work with us on the closing date.   Were still working on this and hope they will see the light. 

 

From Litton Approval Letter:

 

1.Should the closing be delayed and the investor agree to an extension of the original closing date, the seller shall be responsible for per diem charges, extension fees, and foreclosure sale postponement fees. 

 

2.  The seller shall also be responsible for any additional costs and fees over the aforementioned

approved amounts. As permitted by state law, recording fees and/or release fees are the responsibility of the buyer.

 

Dawn Rupersburg

Ocala Real Estate

Views: 86

Replies to This Discussion

Hi Dawn,

I have closed MANY Litton Short Sales and have not had any 'extra' fees associated with these 2 stips. Litton has not added any extras on their end at all. If we had a file that did not close on time, the only fee that my seller had to incure was increase in taxes due to the change in closing date. All of my short sale seller's bring the approval letter's to their attorney and none of them have had a problem signing and closing. They have been great!
This is normal. Lenders are starting to charge per diem and other extension fees because too many short sales get processed only to have the buyers fail to perform. This is why I DEMAND that buyers commit to closing WITHIN 30 DAYS OF LENDER ACCEPTANCE or be liable for any fees. Too many idiot agents tell their buyers to not start their mortgage application until lender acceptance. This is UNACCEPTABLE.
I agree!
So the buyer agrees to pay fees that the amounts are not disclosed? Yeah Right, Litton won't disclose the amount of the fees. I don't have a problem with an per diem fee per day if the closing has to be extended, but disclose what it is. In this approval letter were not talking about just one fee it's a crap load of fees. Fees, that the amounts are not disclosed. This is giving the bank an open check.
Dawn, more and more lenders are starting to charge per diem. They are tired of non performing buyers, which is usually the agents fault for not locking them in or properly vetting them.
Dawn, I think you're reading too much into this. I've not had that happen at all. In fact they did not charge a per diem in the only Litton file I had to go past the closing date. I think they want sellers to be aware that there may be fees that they are responsible for and that they can not come back and ask Litton to pay after the approval has been given.
just wait until you get an AHMSI approval letter and they lay a 1% or $5,000 short sale admin fee on the seller!
Hi Joseph, if you read my post I don't have a problem with the per diem nor does the other Realtor. The amount per day needs to be disclosed. What kind of shady outfit doesn't disclose their fees? Funny how you can't address that issue.

Hi Lisa: I'm not reading too much into it. No one in their right mind is going to agree to pay fees (that are not disclosed) and I'm not going to ask anyone to do that because it's wrong. I'm not going to hope Litton doesn't charge any fees, when clearly they say they will if the closing date gets pushed out. I do the right thing by people. I'm licensed and I should know better.
Update on Litton. Litton would not disclose any of their fees as stated in their approval letter.

Now we all know why RESPA enforced the new changes to the HUD. This is no different. Fee's should be disclosed.

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