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Warn your clients of loan scams before they fall victim

 

Photo courtesy of guldenYour clients have got themselves a great 30 year fixed rate loan at a wonderful rate of 5.5%. So they close on their home and that is when the letters start. Refinance! Save money each month! Pay off your credit card bills! Heck these letters start before the house has even closed because of the credit bureaus selling their information to every loan chasing mortgage broker out there.

But, what you really need to do is warn them about is the scams out there. The misleading letters that attempt to get people to switch their mortgage from their current lender to some scum bag that tricks them in to a higher loan percentage and huge closing costs.

My parents recently closed on their new home and within days they started receiving letters saying they should refinance to save money. But, one that they got really concerned them and they almost fell for it had they not called me first.

The letter said that, "Your interest rate lock expires in 60 days and that your interest on your current loan will go up if you don't call in today and lock in your rate." They thought this was from their current lender and panicked that they didn't have a 30 year fixed like they thought and that in 60 days their interest rate was going to rise and they wouldn't be able to afford the payments if it went up too high.

I assured them that they had a 30 year fixed and even pulled their loan paperwork out and checked it with them again. If they read the fine print, they would have seen that it wasn't from their current lender and that they may not have an adjustable rate mortgage.

But, had they fallen for this, they very well could have refinanced within 60 days of closing, costing them 1.5% higher interest rate per month and an additional $10,000 in closing costs. So warn your buyers that these letters are out there and they are just out to get in their pockets. They need to just put them in the circular file by their desks.

 

Respect Realty LLC (Expect More)

 

At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.

 

Reach out today, we look forward to talking with you!

 

Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)

(503)564-3130

info@RespectRealtyNW.com

www.RespectRealtyNW.com

 

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Comment balloon 9 commentsRespect Realty LLC • November 29 2008 12:50AM

Comments

Great advice. Thanks Todd.

Posted by AMBER NOBLE GARLAND - Top Real Estate Expert, Property Tax Appeal Specialist & Author, - The Agent You Can Trust To Deliver REAL Results! (Strategic Marketing Expert & Relocation Specialist Serving New Jersey and nationwide!) over 9 years ago

Todd- This would be a great thing to warn our clients. I always think one step further and wonder how do all of these scams get this information! Thanks 

Posted by Karen Nusbaum (Coldwell Banker Brenizer Realtors) over 9 years ago

Todd, I appreciate your post. It is very good advice that I plan to share with clients. Enjoy the rest of the hliday weekend, Janice Roosevelt, Kennett Square, PA Keller Williams

Posted by Janice Roosevelt, OICP ABR, ePRO,Ecobroker ( Keller Williams Brandywine Valley ) over 9 years ago

Todd, there's a scammer born every minute, and if these guys spent all their energy on something socially useful, they might actually make a unch of money with it!

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 9 years ago

TC,

This is not a funny story!!! This is akin to 'financial stalking'...one shouldn't have to read the 'fine print' to know the truth!!! Thanks,   Fran

Posted by Fran Gaspari, "The Title Man" - Title Insurance - PA & NJ (Patriot Land Transfer, Inc.) over 9 years ago

I closed a house the other day and the buyer must have asked a dozen times if she was absolutely getting a fixed rate, no pre-payment-penalty loan.  She said that's what they say to ask on TV.

Posted by Barbara S. Duncan, GRI, e-PRO, Executive Broker, Searcy AR (RE/MAX Advantage) over 9 years ago

Hi Todd... It never ceases to amaze me how many scams there are out there and how brazen they are!  Thanks for sharing the "heads up"!

Posted by Steve Shatsky over 9 years ago

Todd, thanks for this post! Scam artists are certainly everywhere. I appreciate the heads up on this ploy.

Posted by Kristen Wahl, CBR (Re/Max Plus) over 9 years ago

Todd,

This is really important advice.  I have had many clients call me abouts advertisements that souned too good and almost always were, like 1.99% option arms.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) over 9 years ago

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