We have close friends who have moved in and out of real estate investments very profitably over the past few years‚ÄĒand it was not unusual for them to be holding several properties at once. Good friends they are, but they never took our advice about mortgage financing.
Instead, they always used some loan hack who never returned phone calls, was late on all commitments, but somehow managed to get the loan funded‚ÄĒseveral days late. According to our friends, he could ‚Äúget any loan funded.‚ÄĚ And he did.
This hack has relocated from the Los Angeles area to San Diego and is now one of those non-responsive real estate phantoms who list foreclosures.
It‚Äôs deja vu all over again.
It absolutely baffles me that the very folk who helped create this mess are now being rewarded by the lenders they duped. I am amazed at the number of listing agents who are also former loan brokers and wonder how this came to be.
And like Brian Brady and other concerned real estate professionals, I believe that separate licensing should be required of mortgage originators and real estate agents‚ÄĒand that banks and lenders should be vetting their foreclosure representatives more closely.
Far too often, in my opinion, these foreclosure listings are being placed with those who helped put the real estate industry into the tailspin it is today.
More and more, I believe our industry needs to tighten licensing requirements‚ÄĒand offer stiffer penalties for those who knowingly place clients in harm‚Äôs way. Consider the licensing requirements for selling stocks and bonds‚ÄĒand the SEC penalties given for misrepresentation.
Does real estate, the most significant investment in most people‚Äôs lives, deserve any less-qualified representation?
I think not.