I am so horrified! Yesterday I got my nails done (that is not the horrible part....they look great :)) and was speaking to my nail girl. "Mary" is Vietnamese and we've often talked about real estate and the lending situation....you see, last year she lost her home to foreclosure. She had paid someone $2500 to handle a loan modification and SURPRISE...nothing happened. So sad!
Unfortunately she told me about the "Loan Mod Consultant" too late for me to help her...but yesterday she had another question.
She has a friend who is looking for a home, and has the money/credit but has become uneasy about the real estate agent. First red light is this agent is going to handle both the real estate side and the lending side....ok, many agents do....but the rest of the story was more concerning. This agent is asking for upfront "application" fees to pre-qualify the loan of $700. I told Mary that I was very concerned about this and that there is no reason to pay for a pre-qual....or anything. Also discussed the RESPA laws and that this was a violation....run from this agent.
Mary then told me that her friend had wanted to change agents since he hadn't taken them to see any homes yet, but wanted money and documentation. The agent told her the loan had already been "processed" and that she couldn't change anymore or she would not get a loan for 2 years.
I'm out of my mind.....I spent a manicure and pedicure emphasizing that this was all unethical and offering to find her friend a good agent in that area. I even offered to work with her myself as a favor (this is a bit out of my range). I hope they listen.
It is so sad all the scams that prey on the uninformed, inexperienced and desperate. Mary told me that no one else she knew told her this was wrong. Just makes me so mad!!!
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