HML Fail! Sherman Bridge Lenders

[Imad M.]

I have a HUD property on contract which expires on 1 Dec. I had 45 days to close. Since this is my third property I chose not to go with a conventional loan. I assumed banks wouldn't want to talk to me anymore. Plus I thought I could turn it around in under a month because the deal was so good. I chose Sherman Bridge because they advertised closing within 5-10 days. They kept dragging the process and had me reschedule my closing by two weeks. Now they're telling me they need another few weeks to close. They've wasted my time and most likely my deal. I have another HML telling me they may be able to close in a week but no promises... HUD offers extensions for legit reasons at $15 per day. I'm now thinking I just bite the bullet and extend by 30 days and go to a solid conventional lender my realtor recommends. Would like to hear your two cents. Imad

[Heather Ambrose]

Hello I am with Sherman Bridge Lending and would like to address this thread.

Imad, I’m really disappointed to hear about your situation but I’m glad you found a friend to fund your deal. Last year our company partnered with an affiliate lender for a very short period in an effort to lend in 13 additional states where we did not supply direct capital. The short story is that the partner could not deliver on their commitments and we moved to quickly end our relationship. We took the lesson to heart and have plans now to only expand into new markets as a direct lender. We are currently in GA, TX, and CA. Again I apologize for any stress this issue may have caused. I’ll be reaching out to you directly. We would like the opportunity to make this situation up to you when we expand into your state.

Frank, I will PM you too. I would like an opportunity to review the details of your situation and why you felt mislead. We have a simple loan disclosure that states all of the details about our loan product. This form must be read and signed off on by every borrower before we start the loan process or collect funds for the appraisal. We do this to provide clarity and ensure the product was explained fully and properly. If this step was missed on our part it is a major issue for us and we will need to address it internally. Your direct feedback is appreciated.

As for REI groups I am unaware of one that we were asked to leave, I feel this may simply be incorrect. In fact we have been promoted to exclusive sponsors of some after a longstanding tenure and we are proud of the service we have been able to provide to our investor community.

As for exclusively doing New Western deals, this is also incorrect as we have long maintained relationships with many other wholesalers in an effort to provide a wider selection of houses to our borrower base. We are also always looking for new sources. We cannot provide loans unless our borrowers have good houses to buy.

As for our borrowers in general I would like to state that in the last seven years of lending our default rate has been less than 0.005%. I monitor all of our borrower surveys and the result is that the vast majority of our borrowers are successful and continue to use our products. However, real estate is a high risk / high reward investment that can be turbulent and plagued with issues at times, and we make mistakes just like any other company. Your feedback allows us to continually improve our processes and the borrower experience. Even though I am disappointed that you did not have a favorable experience I thank you for your feedback.