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We had a realtor taking us to a "befriended" mortgage broker and both of them wanted to convince us to get mortgage...We didn't need one, but I guess the commissions would have been so nice to them and the referal fee also.
Because of the personal interest to get a commission and a referal fee many realtors have gone overboard and stepped away from what their job is and looking out for the best interest of their client.
We had a realtor taking us to a "befriended" mortgage broker and both of them wanted to convince us to get mortgage...We didn't need one, but I guess the commissions would have been so nice to them and the referal fee also.
Because of the personal interest to get a commission and a referal fee many realtors have gone overboard and stepped away from what their job is and looking out for the best interest of their client.
It's been a few years since I took a college level course in Principals of Real Estate...
The instructor emphasized several times that the agent/broker's works for the Seller unless the Buyer has executed a separate Buyer's Agreement...
Things have probably changed since then...
I like using the people my agent of choice has recommended... but, I have checked them out on the States Website for violations... none and I do comparison shop...
I have no problem letting my Agent's Title Co and Mortgage Broker know that I comparison shop and will let them know exactly what I'm looking for so as to not waste his/her time and mine.
Some Buyers become so emotionally attached to the prospect of actually buying their first home that they can easily overlook or rely on everything they are told as gospel...
Lots of disclosures are now mandated by State Law and people still gloss over them and "Sign" away
It really is a fine line when it comes to Brokers and Agents... they generally have a fiduciary duty to the seller, that is who is paying them... there are of course exceptions.
Fairly recently, there was a story of a Broker that got into hot water because he made disparaging remarks to a couple of foreign born buyers to the effect... "They shouldn't be wasting his time by looking in neighborhoods they can't afford."
Turns out most Brokers or Agents have no idea or are they privy to the financial status of their buyers... basically, they can ask the buyer if they are pre-qualified if getting or mortgage to complete the purchase.
Lenders and Mortgage Brokers really are the only ones privy to any financial information and they too have a fiduciary duty to the borrower...
I'm not an Agent of Broker... but I sure wouldn't want to do anything that even be construed as steering or block busting if I was...
Lots of regs under the Fair Housing Laws that could cost someone their livelihood if not followed.
Fair point - I forgot how fair housing laws can require relators to shut off some parts of their brains to avoid getting sued for discrimination.
I had a lively discussion last nite over dinner concerning "whose fault is it that we have 2 million (?) foreclosures. One one hand first time home owners were handed a ticket to fullfill the "American Dream". "step right up, sign right here...no I don't need any money...here are the keys to your house".
On the other hand generations of people before them bought millions of homes with due deligence, their life savings at stake and a clear understanding of the consequences of their purchase.
So, who is at fault here? Greed on behalf of the money lenders? Gov. agencies that allowed "rules" to flow right down the toilet? Mothers and fathers that wanted the best for their familys? And...?
Quite honestly, I'm not quite sure myself and this is my business as a real estate investor.
What do you think?
je
I think the first fault is with the education system for not teaching personal finances and the current President and the last President for not setting a good example with their drunken sailor spending habits.
The second fault is with people who think they are entitled to a house (ever hear of renting until you save up some money?) and people who buy more house than they can't afford.
The third fault is with Congress and groups like ACORN who twisted arms of lending institutions to make bad loans under the typical misguided do-gooders policy of throwing money at low income people to bring about their idealistic but unattainable ideas of social change. They throw money at public schools with the same crappy results.
The fourth fault is with the people who made bad loans without pushing back on the government. Didn't hear a peep out of them when it was going on and some of them flat out lied about how well they were doing.
I think the first fault is with the education system for not teaching personal finances and the current President and the last President for not setting a good example with their drunken sailor spending habits.
The second fault is with people who think they are entitled to a house (ever hear of renting until you save up some money?) and people who buy more house than they can't afford.
The third fault is with Congress and groups like ACORN who twisted arms of lending institutions to make bad loans under the typical misguided do-gooders policy of throwing money at low income people to bring about their idealistic but unattainable ideas of social change. They throw money at public schools with the same crappy results.
The fourth fault is with the people who made bad loans without pushing back on the government. Didn't hear a peep out of them when it was going on and some of them flat out lied about how well they were doing.
And on the 244th post a clear, consise answer to think about.
I especially like the "entitlment" part of your response.
People are entitled to their dreams. Sure.
But if you can't afford them, you can't afford them.
100% right. You are not entitled to own a house. You have to rent/live with parents, etc. and save your money.... Then you buy a house. ONE YOU CAN AFFORD.... EVEN IF THE ECONOMY SLOWS DOWN. OR EVEN IF GAS PRICES GO UP,OR CAR INSURANCE, ETC.
It's everybody's fault. Borrowers, lenders, politicians, you name it. Common sense went out the window and greed took over and now we are all paying the piper. No one ever said that the American Dream meant that everyone should buy a 3000 sq. foot home with 5 bedrooms 4 baths, 3 car garage and pool. The whole thing is financial insanity. It's past time that this country got a reality check and we got one right in the gut!!!
There are many entities to blame. The list is too long to post.
All I know is that many people who played by the rules are penalized by subsidizing people who exibited bad financial behavior.
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Plenty of Blame to go Around
It's everybody's fault. Borrowers, lenders, politicians, you name it. Common sense went out the window and greed took over and now we are all paying the piper. No one ever said that the American Dream meant that everyone should buy a 3000 sq. foot home with 5 bedrooms 4 baths, 3 car garage and pool. The whole thing is financial insanity. It's past time that this country got a reality check and we got one right in the gut!!!
