Be careful with unethical borrowers

[Erik Estrada]

I think all of us as brokers/lenders have had their fair share of borrowers that try to cheat the system or try to blackmail you to get their way. Sometimes it's best to really ask diligent questions before working with borrowers that fell out from another lender. 

Don't get me wrong, there are genuine clients that need our help and service to get them from point A to B. But there are others that will see you doing well for yourself, and try to black mail you to come down on fees. If you are in the business, I want to share a few things to keep in mind before really interacting with a borrower. 

1. Why did the loan fall out? Get to the bottom of the story. Interview the previous lender to see if they have any insight and get things in writing. 

2. Don't discuss fees over the phone, divert to email only. If you have a paper trail, you will be safe. 

3. Look at the appraisal very closely, see who the AMC is, the lender on the report, the age and the comps.

4. If they are pushing for a quick close, and are very aggressive and adamant, I would advise not to work with the borrower. 

5. Be vigilant. If you sense there is something fishy, it probably is.. 

Be careful out there folks!