What is a “Freeze” letter, you ask?
It’s very simple. A freeze letter is typically needed when there is an open revolving-line-of-credit recorded on a property that is getting ready for settlement. The letter will state, very clearly, that the line of credit is blocked from being used any longer. The title company who is conducting the final settlement needs to be 100% sure that no ‘hanky-panky’ can be in put into play by the homeowner. Everyone involved in that settlement can then rest assured that there will be no additional — or unexpected — monies owed by the seller in order to provide a clear title for the buyer.
These letters are not easy to obtain.
Lenders seem to love to say, “We don’t do freeze letters.” Our processor was only able to get one from a local bank today because she refused to take, “no”, for the answer and we had an old letter, from one of our 2016 settlements, to show the lender. I believe her email request for the letter included language like this:
“You did it before! And here it is.”
And that’s why experience matters. On any given day, a number of challenges (or hurdles) pop up in this wild-and-wooly Real Estate world. A Realtor needs to be able to tap dance at times………or drop back & punt at other times.
Yes, experience does matter. Today I’m happy to say that our processor, Dee, saved the day based on her previous experience with a past file.
Yes, we danced a jig in her honor. 🙂
“Parrot River Dance”