Re: The old ‘Bait and Switch’ mortgage companies - Posted by Ed Garcia
Posted by Ed Garcia on May 26, 2000 at 12:15:07:
I’ve spent 2 years now teaching people (How To Have Lenders Fighting To Give You
Money) and your post is the reason why. I’m tired of hearing people moan and groan,
cry and complain, how they are being VICTIMIZED by brokers and other lenders.
The truth of the matter is, many investors like yourself, don’t know what they are doing.
Lori, some people set themselves up to be VICTMS and that’s why this is not the first
time this has happened to you. I’m not picking on you, but I’m just pointing out that
you have to accept the responsibility for your action just as you would if you bought a
property to find that it wasn’t what you thought. The first thing you would do is blame
Lori, if you think I’m picking on you, because I’m a broker and that I’m defending
their position, that’s not true. I could care less about other brokers.
I’m coming on strong with you because I want you and others, who are reading this post,
to realize that it’s your responsibility to learn and understand financing because it’s so
important to your deal.
Lori, I GUARANTEE you, that what happened to you, would never happen to me. You’ll say,
ya right, that’s because you’re in the business. What you really are saying is that, I know
what I am doing.
I GUARANTEE this wouldn’t happen to Jim Piper, because he pays attention to every detail
and then sets the broker up to assure that there isn’t any changes. He knows what he’s going
to need in his loan package, and he knows why he needs it.
Lori, I’m aware that some brokers LOWBALL. They do it because people run around getting
quotes and then who do you think they’ll go to, of course the lowest quote.
It’s just a QUOTE of what the lowest loan the broker or lender has available.
So as a result, the broker is not low balling to deceive the borrower, but is doing it to take
the borrower away from another broker. I’m not justifying it Lori, because the result is the
same. No matter how you look at it, the broker deceived the borrower.
But let me tell you the other side of the story Lori. I can’t tell you how many times I’ve
Quoted the borrower the cost of a loan and had them go to another broker because the
other broker gave them a lower quote. I took the time to explain in detail how my cost is
the result of their qualifications. I was talking to def ears, or selective hearing, which ever
you choose. They’ve heard the lower quote and they’re off and running only to find that
the other broker in the end will bump them to my cost and usually more because in scheme
of things, they are now out of time and the broker knows that they’re not going to pull out
and lose the deal.
Lori, I agree with you, Lowballing, Bait and switch, what ever you want to call it, is not right.
But knowing that this element exist, the only way you’re going to guard against it, is to EDUCATE
yourself. To do that, you have to take the time to understand how the loan is being made, and under
what CIRCUMSTANCE’S. I can’t tell you how many times a borrower tells me something, or puts
some information on their application that does not check out. They stand there with a surprised
look on their face as if to say, what do you mean? Just the other day a seller tell me that he was
was SELLING one of HIS houses to a new buyer, only to find out that HE didn’t even own the
property. HE was in a “sandwich lease option”, and was selling the house to the other party of the
option. As you know when you buy with a lease option, you don’t actually buy the property until
you’ve exercised your option. All you do is, control the property, but you don’t own it. If you don’t
own it, then how can you sell something you don’t own. You get my drift, does this sound familiar?
So when a broker sees that your deal has shortcomings that many other brokers may have a problem
dealing with, that’s going to cost you.
CIRCUMSTANCE’S are usually the biggest reasons for cost changes. The CIRCUMSTANCE’S are usually never quite what the customer tells you in the beginning.
I do everything I can to answer questions and help people right here on this site so that what happened
to you, doesn’t happen to them. The only way it’s going to change Lori, is if you change it. The way to change it is, to either educate yourself, or find a broker that you trust and believe in.
Lori, it’s easier to educate yourself.