Welcome to Charleston Real Estate Blog Sign in | Help

Be careful

Charleston real estate, Internet mortgage advertisingI don't suppose I'm that different from most everyone who uses the Internet in that I'm very careful online about who and when I give my contact information away. At least I hope that's the case and that you are careful because there are a lot of shady folks out there.

One particularly annoying group of shady characters are the mortgage lenders who advertise online.

I was contacted the other day by a couple who told me that they were preapproved for a mortgage and didn't have an agent and wanted my help in finding and buying a home for sale in Charleston. But no more than 24 hours later, they told me that there were some credit issues that needed to be cleared up. And lo and behold, where did they get their preapproval, online of course.

It would seem that you are either preapproved or you aren't. If there are issues, you shouldn't be preapproved until those issues are resolved.

Obviously, a lot of the problems in the economy stem from some of the craziness that existed in the mortgage industry. And you would think that whole mess has been cleaned up but apparently, it hasn't been because you can still find mortgage ads today that appear to be suspicious.

A good example can be found in the ad to your left.

Of course, mortgage rates are historically low today and it's just too bad that some mortgage ads are touting rates that are even lower. I'm sure the fine print discloses some of the fees, requirements and whatnot but these rates are so far below market that it just makes you wonder what's the matter with this picture.

Keep in mind the old phrase, if it looks too good to be true, it probably is. 

And, let me just say that it wasn't just the online mortgage lenders who did all the bad things and that "brick and mortar" lenders were choirboys during the wild west mortgage days.

While I'm on the subject of being careful, it never ceases to amaze me that those who can least afford it are the target of scamsters.

Apparently, programs that promise loan modification are being sold to those who are in trouble with their mortgage. There is no need to pay anyone to help you get your mortgage loan modified because every major lender is cooperating to help troubled borrowers.

Published Thursday, March 26, 2009 7:01 AM by Howard Arnoff

Comments

# re: Be careful

The worst part is that particular advertisement is found on one of the most reputable banking investment sites on the web (www.bankrate.com).

I looked at that particular company you highlighted and noticed you can get 3.87-4.00 5/1s. You just have to pay 17k in closing costs!!!!

Thursday, March 26, 2009 12:33 PM by js

# re: Be careful

JS, I got tired of pointing out the lower my bills advertisements and did in fact catch this one on Bankrate. Now I don't blame bankrate for making money on advertising to support their website just as I don't blame yahoo for letting the scoundrels at lower my bills advertise on theirs.

But the consumer public needs to be aware of this stuff.

And what's wrong with 17k in closing costs anyway ;)

Thursday, March 26, 2009 12:52 PM by Howard Arnoff

# re: Be careful

Check again on how this ad is embedded in to the bankrate website though...

It's as if it is a part of the site and not an advertisement.

It is very misleading!

Thursday, March 26, 2009 3:28 PM by js

# re: Be careful

Not to defend it in the slightest and they even matched the colors to the bankrate page ...

but it does have the little -advertisement- disclaimer at the top.

The problem is that the public doesn't necessarily know that it's an ad and if they click through, that the information isn't coming from a *trusted* source like bankrate.

To take it a step further and I just alluded to it at the end of the post, I get emails from companies wanting to sell me something so that I can make money off loan modifications. To me, it's totally disgusting but how many others don't have a conscience when it comes to preying on people in order to make money.

And there were other companies offering to teach you how to mail your keys back to your lender before you went into foreclosure for *only* $1995 or 3 easy installments of $699 each. Does that top the cake.  

Thursday, March 26, 2009 3:52 PM by Howard Arnoff
New Comments to this post are disabled