Wednesday, October 24, 2007

What's Best For The Borrower


In my many years of working for attorneys, I've prepared the documentation for many bankruptcies. I've also been involved in trying to keep clients' homes from being foreclosed upon. Some people judge those who file bankruptcy. I'm living proof that sometimes things beyond your control can happen, and you end up in a bad situation, and you just need some help.

One thing that I have seen too often is clients who are desperately trying to keep a home, when they never should have been able to purchase that home in the first place. It's all about money, and sometimes I believe that mortgage companies don't really care if you can afford that home and all the expenses that go with it. They see interest dollar signs and are more than willing to sign you up.

I'm not pretending that I know how it all works or claiming that I have a high level of mortgage intelligence. However, I know that if I responded to one of those offers that I get all the time, because I was put on a direct marketing mailing list, they would be more than happy to let me sign my name to a big, monthly mortgage, even though there's no way I could afford to pay it right now.

But, here's what also gets me. The buyers for our farm were pre-approved for a mortgage loan. Yet, it turned into an absolute nightmare, because the approving bank was a big name franchise type bank and their appraiser knew absolutely nothing about farms. Therefore, the appraiser said that our farm land was basically worthless! I finally called one of my husband's friends, who was in real estate back home. He told me to send our buyer to one of the small local banks, because they understood the community and were always looking for farm mortgage leads. Once we contacted the smaller, community-based bank, the property appraised for more than what we were asking and the loan was approved.

I just wish that companies and lenders would learn about the community, the property they are lending on, and the people to whom they are lending money. Call me crazy, but I would rather have a smaller company working for me. You know, those companies where the employees know your name when you walk in the door. With the bigger franchises, I feel like they are only focused on money, and not what is best for the customer.

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