John interviews Pemco's Suki Williams about common closing mistakes made by agents when dealing with HUD homes.

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Transcript

JOHN:  Hey, guys.  John Jones here with another edition of Tuesday Morning Coffee.  With great privilege and honor, I have Ms. Suki Williams.  She’s the closing manager with Pemco.  As stated before, Pemco is one of the Big 3 asset managers for HUD.  And Suki is behind the scenes.  So there’s a lot of things that go on behind the scenes that sometimes buyers and agents have questions about, so I thought we’d go right to the source.

 

SUKI:  No problem.

 

JOHN:  My first question for you, Suki, what do you see as one of the common pitfalls or common mistakes that agents make in regards to closings?

 

SUKI:  Well, the first mistake I see a lot is before the contract expires it’s the extensions.

 

JOHN:  Not getting them done in time or knowing about them?

 

SUKI:  Exactly, right.  Because you know the contract is null and void the first day after it expires.

 

JOHN:  Okay. 

 

SUKI:  I mean, understand that agents have a lot of contracts they’re working with.  So we’re trying to educate them to let them know 5 to 10 days prior when a contract expires, send an extension form.  Send us the proper documentation.  If you want the fee—

 

JOHN:  Waived.

 

SUKI:  —waived, send the proper documentation.

 

JOHN:  Okay.

 

SUKI:  Then we’ll definitely review it.

 

JOHN:  Because once it expires…

 

SUKI:  It’s null and void.

 

JOHN:  Null and void.

 

SUKI:  Null and void.  I mean, we have reinstated, but you know, it’s a hassle to get it reinstated.  We have to go to HUD, make sure they approve.  We have to give them information why we should reinstate.  So it’s time consuming at that point.  And we don’t want to delay a closing.

 

JOHN:  It becomes more of a process.

 

SUKI:  Exactly.

 

JOHN:  Whereas, if they just get that extension in, it’s going to be easier.

 

SUKI:  Yeah, exactly.

 

JOHN:  I got you.  Is there any other things that you see in that department or in your end of it?  I tell you what.  I have a question.

 

SUKI:  Okay.

 

JOHN:   In our area, Middle Tennessee, and the reason I say that is because she works with a lot of states, a lot of different areas.

 

SUKI:  Yeah.

 

JOHN:  But they like to see the closing company that HUD uses there, they want all the documentation done five days prior to the closing date.

 

SUKI:  Mm-hm.

 

JOHN:  Before closing is set, they want it five days prior, which sometimes is a little different than a tradition sale.  Tell us some of those reasons.  Are there some things that go on behind the scenes that we’re not thinking of in those five days?  Why do you like to have it five days?  Is that hard and fast?  Can exceptions be made?  Talk to that.

 

SUKI:  Okay.  The five days, yes.  That is beneficial for us so we can get RTCs ordered, make sure if there’s lead-based paint needs to be done, termite inspection to be done or even treatment.  But however, Pemco will not say no to a closing.

 

JOHN:  Y’all want to close them, right?

 

SUKI:  We want to close them.  We want to close them because we will get a rush if we have to.  But it’s just we have a lot of closings.  We want to get to yours also.

 

JOHN:  Sure.

 

SUKI:  So it’s just the fact that if you can be mindful of that, that’s about it.  But five days, yeah.  I think that’s pretty long and if you have something, an emergency or an overlooked because it can be overlooked, the lenders sent the package already, let’s get it closed.

 

JOHN:  Sure.

 

SUKI:  I say let’s get it closed.

 

JOHN:  Well, I think a lot of times that maybe we forget as agents.  Y’all are in a high volume.

 

SUKI:  Mm-hm.

 

JOHN:  You’re dealing with a lot of files.

 

SUKI:  Lot of files, yeah.

 

JOHN:  And in May, you might be closing thousands.

 

SUKI:  Mm-hm.

 

JOHN:  So when you’re dealing with a high-volume company like Pemco or other asset managers, they need to have things done a little bit ahead of time.  It really helps them.

 

SUKI:  It does help.

 

JOHN:  Helps the process.

 

SUKI:  It does help.

 

JOHN:  We forget that sometimes.  That might be my only deal that month.

 

SUKI:  Yeah.  No, it helps but of course, our first priority is our customer service.  We definitely thrive on our customer service.  We want that file to close.  We want that property closed.

 

JOHN:  And y’all do a great job.

 

SUKI:  Thank you.

 

JOHN:  Great job.

 

SUKI:  Thank you.

 

JOHN:  Because we have dealt with others.  Let’s be nice and we think y’all do as good a job as anybody.

 

SUKI:  Well, thank you.  We try.

 

JOHN:  Thank you so much for doing this interview with us.

 

SUKI:  No problem.

 

JOHN:  I think that was good information for our viewers, and we’ve enjoyed working with you guys.

 

SUKI:  Thank you.  I mean, I do have one other thing.  I know Tennessee, you guys have a lot of contracts in.  If you can contact your closing attorney, let them know you’re trying to close, especially if it’s a cash closing, let them know we want to close those.

 

JOHN:  Okay.  They’re a little easier to work with.

 

SUKI:  They are.  But I did find out the Tennessee closing attorney, we only close two to four loans a day with them.  We want to make that number higher.

 

JOHN:  Okay.

 

SUKI:  I mean, let’s get it to 10 a day.  We want that volume.

 

JOHN:  All right.  That sounds good to us.  We want that volume too.

 

SUKI:  Okay, good.

 

JOHN:  Thank you so much Suki.

 

SUKI:  Thank you.

 

JOHN:  We appreciate you so much.

 

SUKI:  Thank you.  Thank you very much.

 

JOHN:  Okay.