Discussion

• September 27, 2006

  9:48 AM

  Brad Mc Millan writes:

  I personally own a home on a block in the north city park neighborhood where 1100 sq ft homes are selling for about $180,000. I had my house appraised about two years ago for $215,000. I called my lender on an unrelated issue in the last 6 months and their phone agent said they thought my house was worth about $225,000. She was trying to write me up on a home equity product. I was initially flattered by the two estimates then I realised I am stuck holding the debt if the two appraisals were overshot. Thank goodness I didn't take either loan. These crooks are getting enough of my money already!

• September 27, 2006

  10:20 AM

  Real Estate Appraiser writes:

  I believe the website the article above is talking about is this one:
  http://www.mkgappraisal.com/Site_Map.htm
  Phil Rice has been a one man crusade to shake up and change our "system". And I might add, has been doing an excellent job. Read his letter to Governor Owens dated 9/26/06 from the Original 5 snail mail letters.
  Erin Toll is the new director because the previous director, Stewarch Leach was fired after years of not regulating and enforcing the rules. He was a regular Tom Delay of the real estate division and just roasted in his own unchecked power. He was only fired after Phil Rice started posting the obvious mortgage fraud transactions on the internet. This position is an appointment by the Governor. So Yes, you can throw some blame at the Republican held Governors office for the hog run wild real estate fraud in the state. It was going unchecked and it was going unchecked for a reason: The big real estate lobbyist money comes from Republican real estate tycoons who don't want the system changed. They want full control how to close a mortgage loan and make a big commission while executing the transaction. And if you need to perform fraud in the transaction to close the deal, so be it.

• September 27, 2006

  11:01 AM

  Anonymous writes:

  It used to be you had to prove you were finacially fit to buy a home.Ever since FHA relaxed restrictions there has been an explosion of fraud and misrepresentation of buyer's financial fitness.The underwriting of home loans has gotten so mired in fraud and home loans are given to anyone with a pulse.No need for a stable job they can make one up.
  The lending industry is to home loans as Bar None is to auto loans.
  Government backed loans are costing tax payers millions of dollars if not billions,because of loans to people who really don't qualify and lenders who have come up with some very creative ways to make sure anyone financially stable or not gets a home loan.Are these loans legal?Most are very borderline.
  Home buyers have no idea what they are signing and no idea when they are being ripped off.They only see the home they are buying.It's everyone's dream to own their own home and real estate agents,brokers,and lenders take advantage of their knowledge and the buyer's stupidity.

• September 27, 2006

  11:41 AM

  Hogar De Vuelta writes:

  Here is a link which exposes another group which preys upon people who are in financial trouble and have equity in their home. I would support torture for those convicted of this crime.

  http://www.ag.state.mn.us/consumer/housing/HomeEquityStripping/HomeEquityStripping.htm

• September 27, 2006

  11:41 AM

  Appraiser guy writes:

  I have been an Appraiser for two and a half years and did my apprenticeship under a highly ethical mentor. We do not "push value" on our assignments but you would be amazed at the pressure put on the Appraiser by some loan officers. Not all, but some. I have gone on sales calls trying to generate new clients and had these exact words said to me by the LO, "What we are looking for in an appraiser is someone who can really push value, you know, really get the most our of the home" these were the FIRST words from his mouth. At that point I left the took my card back and left his office.
  In the end it is the fault of the Appraiser for inflating the value, this cannot be disputed, but I do not think the general public is aware of how much pressure is placed on Appraisers by the lenders, especially in a state like Colorado where there is virtually no regulation of mortgage lenders, Colorado is one of only 2 or 3 states where there is no licensure requirement for Loan Officers. My hope is that unethical Appraisers are weeded out, unethical mortgage lenders close up shop, and uninformed homeowners learn to make wise decisions with what, in most cases, is the biggest financial decision of their lives. The most successful mortgage companies I do business with rely on referral business by offering ethical lending services and not by putting people "upside down" in their homes. Sadly, there are many out there who have the Appraiser "in their pocket" and approach the profession like used car salesmen (no offense to used car salesmen). I heard an LO just a month ago boasting about how he closed a loan for a person with a 520 credit score "I made 7 points on him, I won't lie, but I got it done". Words like that frighten me.

• September 27, 2006

  12:09 PM

  Tree F. Hugger writes:

  Let me put it this way, you have no idea how bent and crooked the mortgage industry is. Anyone listen to Tom Martino this morning on 630 AM? I got a phone call this morning telling me to turn my channel from 760 to 630 and listen to the mortgage talk with Tommy Boy. Guess Freakin what? The mortgage expert Tommy Boy was talking with owes Tommy $ in past advertisements. Now guess what! That debt was paid- Tommy Boy owns part of the mortgage company he was referring this morning!!. That's our mortgage industry folks, step right up, see what's behind the curtain for $10. It's a regular circus act and you are the prey.

• September 27, 2006

  12:27 PM

  Anonymous writes:

  I have a problem with Tom Martino's referral list.Everytime I call someone on the list for anything their prices are so high it's crazy.

  I called some lenders on his list about refinancing my 7% mortgage at the time.They wanted about $4,000 in closing costs! All of them were quoting $4,000-$5,000 in closing costs.I ended up shopping around and getting a 6% fixed for no closing cost from a bank and 6 months later getting a $4.8% loan fixed 15 year for $0 closing cost and nothing was added to the loan either.For all you people who think adding closing costs to a refi is not paying closing costs you are too retarded to own a home.

  Tom Martino's referral list is worthless.

• September 27, 2006

  12:45 PM

  David (R) writes:

  Real Estate Appraiser -

  I must disagree strongly with your assertions that 1) the Republican leadership in the Guvs office is responsible for real estate prices, and 2) that over-valuation by most appraisers is a major issue.

  I know MANY appraisers of incredibly ethical fiber who would be grievously insulted by these comments. Most of them are Democrats, by the way. But regardless of party, they make every effort to subject their appraisals to fair market analysis using area comparables, and even 'cross compare' with neighborhoods that carry the same attributes - mainly to see that it isn't "far off" without there being some very good reason(s) for it.

  Our real estate market was going crazy long before Owens took the seat, just like other major markets in the southwest. In fact, Phoenix and Las Vegas have grown substantially faster than Denver and COS for the same general house on a similar property in a generally comparable neighborhood.

• September 27, 2006

  12:48 PM

  Anonymous writes:

  I sit and laugh when I see or hear an ad for a mortgage lender that wants you to refi,add credit card debt,do home improvements,add a car loan,and my favorite of all time, take a dream vacation! and put it all on a home loan that is most likely 20 to 30 years. I can't understand how anyone would want to pay for a car for 20 to 30 years,or take a vacation and put your home on the line so you can go to Disneyland!This is the most insane thing I've ever heard of.The sad thing is people actually do this!The mortgage industry has lowered itself to the point that they make car salesmen look credible and trustworthy.

• September 27, 2006

  12:54 PM

  Anonymous writes:

  David R-
  Real estate appraiser and real estate guy are 2 different people. Real estate appraiser does not say anything about republicans are responsible for real estate prices. I know, I wrote it.

• September 27, 2006

  12:56 PM

  Anonymous writes:

  12:27 - "Tom Martino's referral list is worthless."

  Absolutley it is worthless. Companies pay upwards of $5,000 and more per year to be on that list. Companies are NOT checked into as the list claims. If you have the bucks, you can be on Tom's good side. The referral list is a business and is profit to Martino. He is a business man first and foremost - long before he is a self-proclaimed consumer advocate.

• September 27, 2006

  1:06 PM

  Real Estate Appraiser writes:

  David R-
  The part I wrote about republican real estate tycoons who cough up the lobby money so they can control how mortgage laws are written is not made up either. I lifted that right from a lecture given by one of the top real estate attorney's in the state of Colorado. Oliver Fascona of Frascona, Joiner, Goodman and Greenstein out of Boulder.
  What did Owens do this last year? Signed a bill that will make real estate brokers Register with the state. David-it's the patroit act of the mortgage industry. That's Register David. Not license. That means you can still be that Denver North high school drop out with no financial skills at all and be eligible to handle the most important financial decision of a home owners life. And look how good Colorado is doing with foreclosure's in the country. Yeah baby, we lead the way. What's that saying? Birds of feather flock together. Want a mortgage loan David? Trust me.

• September 27, 2006

  1:09 PM

  Anonymous writes:

  12:56-
  It's $5,000. a month. Not year. Some pay more a month to sell their product.
  

• September 27, 2006

  1:18 PM

  Anonymous writes:

  Caveat Emptor.

  If you are too stupid and/or lazy to do any preparation before making a huge financial commitment, you need to sit down with JW, jay , am666, and all the usual apologists for a circle dirk.

• September 27, 2006

  2:09 PM

  David (R) writes:

  Real Estate Appraiser -

  I'm just not seeing the avarice and manipulation you're implying. And again, I'll tell you that I know good, life-long Democrats with more money than they could spend, and they're as interested in turning it into more, every bit as much as the wealthy Republicans I know.

  I am miffed by people who claim Republicans have all the money. Let's look at daddy Kennedy and the kids, Al Gore, Bill Gates, Ted Turner, George Soros, and John Kerry, just to name a few. Could it be that if there are more wealthy Republicans than Democrats, it's because they're just more inclined to conservative financial decisions? I mean, we've had a pretty good blend of Dems and Reps over the past 40 years, and if the Reps have more money, perhaps they were just better at building their fortunes and/or handling their money?

  I can't speak specifically to internal state government issues on this topic because I'm not involved with it, nor do I spend any real time researching it. I do know that I'm getting damned tired of governmental "servants of the people" getting (taking) all the breaks and using their office for personal gain.

• September 27, 2006

  2:34 PM

  JW writes:

  When we bought our house I didnt see anything weird going on. There was one lender who wanted us to do a %100 loan, at a decent rate, but that got nixed.

  In the end, we went with a friend of mine that is a broker. He got us .5 off the rates the next best was promising. The only "shifty" thing I dealt with was my agent freaking out my girlfriend about the Fed raising rates, and whether or not my friend had ours locked. He was trying to get us to go with his guy.

  Of course, my lender friend was there the whole time, telling me all the tricks guys use. Making you sign stuff that has no legal meaning whatsoever in an attempt to gain trust and a feeling of obligation. Lenders working with agents to get kickbacks. Etc.

  All in all, we got a good rate, and fixed, for a house that did appraise over what we paid using a legit appraiser.

• September 27, 2006

  3:08 PM

  Tree F. Hugger writes:

  David, JW- you guys are "A" paper clients. You don't need to tweak the system to get a loan at a decent rate. I deal mostly with subprime insects. That's a whole different breed of roach. This roach needs to pay a higher % rate than you and their brokers want their business as it pays more in commissions. A lot more. I see loans where the broker is taking 10 to $20K in fees to get a subprime roach into a $250K mortgage note where you guys paid 0. I'm talking credit scores of 650 and less with multiple BK's. You've heard the commercial for cars.....all you need is a job to get a car. Hell, you don't even need a job to get a mortgage, it's called stated income, no document needed. All you need is an appraisal showing the mortgage company the house you want to buy is worth $250K for the 100% loan. I've posted it before, that's where the cockroaches come out and play in the dark. Get that $250K loan for a house you really plan on buying for $175K and it's only worth $175K. So, without a job, you can buy a house and get $75K back to split with your broker who committed fraud pushing your loan thru the system. All you need is that appraiser. Well, Stewarch Leach got fired from a govmint job without having sex with an intern........now it's Erin Toll's party. Welcome to Alice Cooper's Nightmare Erin. I hope you like marijuana, it can relax your nerves after a day in hell reviewing mortgage fraud. Support Mason Tvert, he just might be your friend.

• September 27, 2006

  3:20 PM

  David (R) writes:

  Yo Tree Hugger -

  Hope all is well. Now, the situation you described about knowingly over-appraising and committing, what in essence sounds like fraud to me, should be prosecuted. Nobody is going to hear me disagree with that at all.

  This entire guvmint crap thing is enough to make me want to come over to the tree fort and roll up a fatty with you.

• September 27, 2006

  3:33 PM

  gr8fuldude writes:

  TH - So if I read your post correctly, and from all else I've read, brokers actually have more incentive to do business with the "credit impaired" so to speak, no? So we have more money and more properties and more unfounded liabilities going into the hands of those who are least able to pay. Friend, that is some fouled up stuff. This has recipe for disaster written all over it, and I doubt we've even begun to see the fallout yet.

• September 27, 2006

  3:46 PM

  Tree F. Hugger writes:

  8dude- you have gratitated' from the school of rock and have seen the light- Blues Brothers. Yes, I work with sales people who prefer subprime b/c they need to close maybe 2 deals a month instead of 10 of "A" paper to make the same food dollar. It's mostly subprime that goes foul ball and into instant foreclosure. I can't go a month without a major lender such as Country Wide sending a file back to us saying "you own it" for the reason of 1st payment default! Meaning, the borrower didn't even make the 1st payment. CW has a contract with lenders selling them loans, if the borrower doesn't make the 1st payment, they ship the loan back to the lender for repurchase, automatic and no questions asked. So we have a person who is in charge of calling the borrower reminding them to make that first payment, just like your dentist leaves you vm for your scheduled appt. tomorrow. I call it financial musical chairs.......the last lender holding the note owns it!!!!

• September 28, 2006

  10:14 AM

  Tree F. Hugger writes:

  Guys- everyone loves free advice. Never invest into real estate blind and always hire your own real estate appraiser that reports only to you. A great $350. investment.
  http://www.nytimes.com/2006/09/28/us/28martinsville.html?ex=1317096000&en=3c2b0f9a98befd76&ei=5088&partner=rssnyt&emc=rss
  

• September 28, 2006

  1:46 PM

  Jack writes:

  Sadly, there is little we can do about this except do our homework and analyze the neighborhood we are moving into. What am I paying per square foot? What have homes in this immediate neighborhood sold for (per square foot) in the last 9 months? Are there mitigating factors for why my house is more or less (like it's on a double lot, or conversely it's on a busy street). You can not rely on your realtor - they're in it for the commission - that means it the deal does'nt go through they get nothing.

  So something needs to change. The worst part is borne by the buyers that dutifully pay and when it comes time to sell your realtor is ready to take 5.6% (2.8 for the lister and 2.8 for the agent that actually sells the house). BUT what if your house hasn't appreciated (because you paid too much?). I guess $14,000 in commissions is a fair price to get rid of a 250,000 house - NO IT'S NOT!

  Let's say, for the sake of arguement, that the average realtor's commissions are equally split between selling & listing. That means a realtor can sell just 5 homes per year and earn $70,000. per year. I WISH MY BOSS WOULD LET ME SELL SOMETHING ONCE EVER 2 1/2 MONTHS AND STILL PAY ME 70K. - AND THAT'S JUST A CHEAP 250K HOUSE.

• September 28, 2006

  4:34 PM

  Realtor writes:

  Jack baby- it's 6%. SIX. not 5.8. I've got C.C memberships dues monthy darling.
  3.2% to the listing agent. 2.8% to the buying agent. Listing has marketing cost to absorb. Try selling on your own, we'll just avoid your house like plaque. Realtor association is one big republican unionship, and we know how to black ball just like our congress.