Mortgages & Creative Financing

Buyer Beware: You Don’t Have to Use the Mortgage and Title Companies Affiliated with your Real Estate Broker. Make Sure You Shop Around!

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Caveat emptor is Latin for “Let the buyer beware”. A recent class-action lawsuit filed in the state of Minnesota is bringing to light a long-standing issue that affects buyers of residential real estate throughout the country—alleged steering of home buyers to affiliated title, settlement and mortgage companies by large realty brokers. This widely utilized practice [...] View the full article: Buyer Beware: You Don’t Have to Use the Mortgage and Title Companies Affiliated with your Real Estate Broker. Make Sure You Shop Around! on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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    Carol
    Replied almost 12 years ago
    a lot of borrowers get suckered in by the realtor. they need to start shopping for their own attorney, insurance, etc!
    Rick Jacobsen
    Replied almost 12 years ago
    This is really good info… thanks for the heads-up! It doesn’t surprise me though, real estate companies are ‘in it to win it’. If they can turn a higher profit by using preferred partners and perhaps stimulate salespersons by offering higher incentives, for using preferred partners… why wouldn’t they? I will definitely keep this article in mind when making my next home purchase. Thanks!
    Tom
    Replied almost 12 years ago
    Pretty solid advice there. You think people would realise using services suggested by the person you’re buying from may not be a good idea. I guess there are still a great many naive people in the world. Plus which, buying a house can be a major source of anxiety. What is your response to anxiety? You want it to end. So you take the quick and easy option.
    Tom
    Replied almost 12 years ago
    Pretty solid advice there. You think people would realise using services suggested by the person you’re buying from may not be a good idea. I guess there are still a great many naive people in the world. Plus which, buying a house can be a major source of anxiety. What is your response to anxiety? You want it to end. So you take the quick and easy option.
    Tom
    Replied almost 12 years ago
    Pretty solid advice there. You think people would realise using services suggested by the person you’re buying from may not be a good idea. I guess there are still a great many naive people in the world. Plus which, buying a house can be a major source of anxiety. What is your response to anxiety? You want it to end. So you take the quick and easy option.
    Chris
    Replied almost 12 years ago
    As a real estate attorney and owner of a title company, we do our best to market ourselves to all the local Realtors and mortage companies. However, the trend we see is that some of the national Realty companies now own their own mortgage companies and title companies, and they will find ways to punish their Realtor associates if they do not convince their clients to utilze the services of these in-house providers. One Realtor was told that if he did not increase his percentage of clients utilizing the in-house providers, he would be transferred to one of the undesireable slow satellite offices.
    Roberta Murphy
    Replied almost 12 years ago
    Joshua: Excellent article and information for all. For several years we have set maximums in purchase offers that our clients will pay for escrow services. We are also now disclosing the possibility of exorbitant escrow cancellation fees charged by at least one captive escrow company. Congratulations on your well-deserved People’s Choice nomination!
    Roberta Murphy
    Replied almost 12 years ago
    Joshua: Excellent article and information for all. For several years we have set maximums in purchase offers that our clients will pay for escrow services. We are also now disclosing the possibility of exorbitant escrow cancellation fees charged by at least one captive escrow company. Congratulations on your well-deserved People’s Choice nomination!
    Ryan Paul
    Replied about 9 years ago
    Thanks for making us aware.