Evil lurks in our world today; from violence, war, social injustice – only to name a few particulars. But who would have assumed that evil hides even behind flashy mortgage professionals in the Inland Empire who seem to exude trustworthiness and competence? The horror is unfortunate and the betrayal is appalling.
In Fontana, a real estate agent promised a homeowner & presented him a contract to sell their home in 45 days. The agent was slick-looking in his 3 piece suit, leather shoes and flawless hairstyle. Because their home had been overpriced and on the market for 153 days, they fell for his confident demeanor and agreed to the terms on the purchase contract & the dual agency where this ‘slick agent’ represented both the sellers and the buyer. They abandoned their not so slick looking, but more straightforward agent and let their current listing contract to expire.
Towards the end of the escrow with the “slick agent,” the Fontana homeowners learned that the buyer was actually a previous buyer who canceled the transaction with their first agent whom acted with fiduciary concern in regards to the sellers’ reasons of refusal to succumb to the buyer’s unreasonable requests for additional credit and extension to investigate the property.
45 days passed and the escrow was no where near closing. The homeowners asked for the “slick agent’s” expert advice: ‘Should they continue to pay on their mortgage?’ for they could no longer pay the $700,000 cash-out loan that another previous “slick agent” help get them months prior. The virtuous, professional answer should have been a resounding, “YES, you definitely need to pay your mortgage.” However, this “slick agent” advised them not to pay on their mortgage under his belief that his buyer’s loan would fund, or so he led the homeowners to believe. With hopeful expectations, the sellers followed the ‘slick agent’s’ advice.
Needless to say, the buyer’s loan never came to fruition, the sellers’ never closed on their home, and the sellers’ were behind two months on their Fontana mortgage when they last spoke to their more straightforward, but not so slick looking agent.
In hindsight, the sellers’ are assuming that the ‘slick agent’s’ advice to stop paying on the mortgage was a plot for the buyer to be able to purchase the home at a lower price – at a price that only a ‘distressed seller’ could agree to.
Their more straightforward, but not so slick looking agent has advised them of the falling real estate market, the increased buyer finance guidelines and appraisal limitations. She informed them that the best solution for them is to really lower their price from the original $1.2 million to $800,000 to avoid foreclosure for they will still come out ahead with a gross profit of $100,000. With the mortgage still in arrears, they have yet to face the reality of decreased equity.
Don’t let this horror happen to you. Open yourself to hearing straightforward consultation even if it may not be what you hoped for your real estate investment. (Sources withheld to maintain the confidentiality of the buyers and sellers. Real estate offices’ names can be provided only if within the guidelines of Associated Content.)