Common lending scams to be aware of...

[Erik Estrada]

Hey BP! 

I have been seeing a lot of fall out deals lately. Most of which are due to the following horrible practices lenders will do to get a loan in.. 

1. Not locking in any terms and hitting you with a much different rate and fees at closing. 

2. Saying they can do a loan they are 50/50 about... 

3. Failing to meet critical contingency deadlines 

4. Floating the rate to collect a higher spread at closing 

5. Dragging the process for 45 days+ and saying "they are close to closing" 

6. Collecting a deposit and not being able to refund you if the loan terms changed significantly... 

Be careful with who you end up working with. There are a lot of desperate lenders out there that will tell you anything to get a deal in, and go ghost when it does not work out.. 

[Chris Seveney]

Cannot agree more. We just had someone reach out to us that is trying to close next week and the lender told them they could get a fix and flip Loan at 8 1/4% and $500 originationfee on a sub hundred thousand dollar loan and property. The lender ghosted them and now they’re asking if we can meet those terms and we were blunt and telling them for a first time Fikse and flipper the terms are going to be much higher.