Admin

Realtor, Loan Officer and Seller Conspire to Con Vet out of thousands!

By
Mortgage and Lending NMLS #209419

Veterans who have served their country should be able to use their VA home loan entitlement.  However at any given time the parties in the transaction from the Realtors, Sellers and sadly even the loan officers can conspire to steer a Veteran away from using a Vet home loan in Texas, or elsewhere at the cost of thousands to the Veteran.

My previous post covered several other ways Veterans are being harmed.  The link to that post VA Home Loan abuse is located here

Here is a case where all three parties in the transaction actively worked against the best interests of the veteran obtaining a home loan.  To summarize, if you are a vet and someone tells you that you cannot use your Veteran home loan entitlement when purchasing a home run, don't walk the other way.  Because they are most probably trying to:

  1. Make more money
  2. Make their life a little simpler
  3. Lack Experience using a VA loan

All at your expense.

They say a picture is worth a thousand words so here was the analysis that I went over with the veteran.  By not using his VA home loan entitlement the veteran would pay $9,000 more at closing and have a virtually the same payment and pay the loan off in the same time.  (even with the VA funding fee rolled in as illustrated).

When I asked the veteran why he was not using his VA home loan entitlement he said the seller refused to pay the VA Non-allowable fees.  I told the Veteran that we can increase the purchase price by the small amount needed and the seller will receive the same amount at closing.  (This is taken into account in the analysis) This is understandable that many sellers may be concerned about that their may be increased costs to their bottom line.

I spoke to the Veterans Realtor and this is where I found out where the culprit really was.  The Realtor said that it was simply too much trouble to draft a new contract, do a new net sheet and get the seller to sign off on that.  I was appalled at the lack of professionalism that this Realtor showed  to someone who fought for this country!

Finally, the loan officer, who is related to the Realtor, told the vet that they don't do VA loans because they are too much trouble to learn and take too long to close.  So there you have it a three step con job of a Vet attempting to use their VA home loan entitlement.  In the end the Vet paid thousands more out of pocket because the "Professionals" in the transaction were either too lazy or too greedy to help someone who fought for our country. In the end there were no laws broken here but I would say that Ethics violations did occur.  The vet was given bad advice and made a decision on that and the "professionals" gave bad advice for their own gain.

I'd be interested in you opinion on this.  There are many competent Realtors and Loan Professionals out there, however when you get a bad one how do you deal with them.  I'd love to know.

Sincerely,
Henry Daniels - Sr. Mortgage Banker & CMPSI Certified Mortgage Coach
936-228-1944

certified mortgage coach

Originally posted here

 

 

Comments(2)

Tim Riddle
Tim Riddle Broker Associate,Marsha Hardin Real Estate - Azle, TX
SFR,TAHS, Azle ,Fort Worth Real Estate

Thats just terrible. I would say major ethics violations happened !! He sure needs to talk to the local board about this, I'm sure the ethics and grievance committee might have something to say about this, That lazy Realtor and loan officer gives you and I a bad name !! Thats disgusting, what goes around comes around..

Mar 13, 2011 04:53 AM
Henry D
Adak, AK
Nationwide Construction, Rehab,Conv & VA/FHA/USDA

Yes Tim, it is and there is an active effort in the marketplace to discriminate against Vets.  It used to be I'd hear about this maybe monthly but now it's weekly

Mar 15, 2011 02:06 AM