When It Happens to Them It's a Recession – When It Happens to You It's a Depression

GREAT.

I wrote a blog post a couple of days ago about Indymac shutting down it’s lending operations. Something about a Pig Through a Snake. Perhaps you read it – about capitalization issues taking down another lender – blah blah blah blah. It was mildly interesting but not earth shattering because, hey, it didn’t affect me!

Then late yesterday afternoon I finally received a call back from my intrepid commercial mortgage broker. I had called him to talk about changes in rates since we talked last week and also to discuss firming up the other terms since the balance of the due diligence was due from Mr Seller at 5pm yesterday.

What does he tell me? That oh by the way – that even through they had told me from the start that they were a direct lender, they had planned to use Indymac to fund my loan all along. And because Indy was basically out of business now we would have to start the process all over – from scratch. 

With a Fannie Mae loan. 

I looked for a window to leap from but I was on the first floor. Another three months of back-and-forth?? And that wasn’t all of it.

“Excuse me?” I asked him. “Didn’t you tell me that when we first started this odyssey that Fannie Mae loans were WAY more expensive in terms of costs and fees??” 

“Um, yes”, he tells me. “About $6,000 more than what you would have spent with Indymac”.

“Six THOUSAND more??  All because Mr Seller dragged his feet on the due diligence??”

No way, I said to myself. This has just become the seller’s problem. 

So I called the selling broker and countered for this and a couple of other expense items that were less than accurate. I gave him an additional 24 hours to sort it all out. (I may get my 11 cap rate after all!)

So this is finally going to come to a head later today. I never dreamed that it would be so difficult to spend a million dollars.

So again, stay tuned. 

 

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