Flexibility and Service Matters After Closing
After over 25 years in the business, it still surprises me that servicing and asset management are not more important considerations when selecting a lender. But when an unfortunate casualty loss occurs or you need flexibility that may seem small to your lender but important for you, the value of the post-closing relationship becomes clear. The truth is that flexibility, problem-solving, and service after closing matter every bit as much as getting the loan closed.
Borrowers may not realize that post-closing servicing isn’t all rules based. There is wiggle-room to provide you flexibility in both small and big ways. Specifically, Beech Street worked with a borrower who had a fire on his property just before rate lock. Rather than delay rate lock until the damage was repaired, we escrowed reconstruction funds and closed the loan as scheduled. From that point on, our asset managers were on the phone with the borrower on a regular basis. When the borrower requested a waiver on monthly inspections, we had enough confidence to work out an arrangement to supplement the final inspection with monthly reports and pictures.
Casualty loss is not the only occasion when a lender’s post-closing responsiveness is important. A recent Beech Street borrower was drawing on escrowed funds to make repairs identified prior to closing. While the borrower was doing an excellent job, moving forward rapidly to make repairs, his quarterly reimbursement schedule was not working for him. Rather than slow progress, our asset manager went to the agency and secured a modification that allowed for monthly reimbursement.
On another occasion, a borrower was selling his property and Beech Street approved the assumption in less than 30 days. Unfortunately, that buyer and then a subsequent buyer fell through on the sale, creating huge frustration for the selling borrower. We guided the seller through the entire process, advising them on potential owners and when the final successful acquirer was identified, Beech Street approved the new borrower in days.
More flexibility exists than you realize. We at Beech Street are there to solve post-closing problems for you no matter how big or small.