Is Your Mortgage Broker Offering to Find You a Home?

Home sales have sharply dropped in 2006 compared to the past three to four years. Many Realtors are now scrambling to find homebuyers. What are many of the Mortgage Brokers doing? The same thing, as when home sales slow down, so does their business. I am now seeing it start all over again! Mortgage Brokers with signs on their cars or advertisements stating that they can help you find a house. Not always, but most of the time, they have a large stake in seeing that you buy the house of their choice, not exactly yours. Surely not in your best interest, but theirs. I see the advertisements way to often!

A Mortgage Broker will be featuring a home that he say’s you can get with $0 down and low payments. Beware! There is a very good chance that he is marketing the house for a property investor that has offered to pay him/her a nice little sum of money if the Mortgage Broker finds a buyer for the house and closes the deal. Usually these houses were once a foreclosure. Ninety percent of the time they are a low quality house that has not been kept up. In researching the title, you may find the house has a very long chain of title over the past 6 to 24 months. These houses get flipped around from one property investor to the next.

The end owner usually owes more than it is actually worth. The owner/seller needs to get rid of it, so he employes a less than reputable mortgage broker to market the house to someone that possibly just doesn’t understand the market well. The mortgage broker usually pumps up the actual value by having the appraisal streched by a less than reputable appraiser. What happens if you follow his lead? 1.You pay to much for the house. 2. You get less than desirable mortgage terms. 3. Your stuck in a house, as well as a mortgage that you can’t sell out of if you need to! This is bad news! It happens way to frequently. Mortgage Brokers like this are “Predators!” Please believe me when I say that they have not your best interest in mind, but their own!

If you see the signs that say “mortgages” “we sell houses” “ask me about a home with $0 down”, etc., etc. Run, don’t walk away from them! Beware!

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