Yes, there was and lot of foolin’ around in the office today.  I had no idea that we had so many practical jokers!!

In addition to all of the comic relief, we were able to get some real work completed.  We had a good business meeting this morning discussing some lessons learned and The Economic Model.  We also had a fantastic pitch-in lunch with many of our vendors.

Lesson Learned:  Seller Could Not Close…..Buyer Upset
Here recently, it seems that we have had several closing that did not happen due to the buyer financing.  Well, this time it is due to the seller’s financing.  Yes, that it correct.  We had a buyer for a home that was due to close this last Monday but did not due to the seller’s financing.

The seller of this property has a prepayment penalty attached to the mortgage of the home.  In order to close on the home, the seller would need to bring an additional $3500 to closing for a total of $8500.  The seller could not come up with the funds and now has refused to close escrows on the home. 

With all of the subprime loans and adjustable rate mortgages written over the last few years, we are seeing more prepayment penalities at the closing table.  Be sure that you are communicating directly with the lender to insure that there are no prepayment penalties attached to the mortgage note.  In this case, the seller did not think he had any penalties to be paid and did not find out about the prepayment penalty until this last Friday.  So, both the buyer and the seller are in a tough position now.  Do your best to save your clients this grief and do your homework.