Buyer’s Choice Realty blog

Caveat Emptor - Buyer Beware! While this rule usually applies to buying a home in Massachusetts, it also can apply to applying for and obtaining a loan on your home purchase. Boston Business Journal recently reported on a temporary cease-and-desist order taken by the Massachusetts Division of Banks against a company based in New Hampshire that also operates in Mass.

Here are the details, as well as the company involved,

“The order against The Mortgage Specialists Inc. of New Hampshire was taken after examinations by the Division of Banks revealed it had knowingly inflated borrower income and falsified documents to secure loans. The regulatory move requires the company to place all remaining loans with a qualified lender or broker and forbids it from initiating any new mortgage loans pending a Division of Banks hearing on the firm’s practices.”

This is not a permanent order, and the company can appeal the decision. I took a look at their website, and found a message from company president Michael Gill. A highlight,

“We feel that because of the climate in this industry that this has been blown up. We feel confident that we will resolve this with the banking department quickly.”

Gill basically stated that this was a ‘compliance’ issue and defended his company’s integrity and track record. I have never had buyer clients work with this company so I don’t have an opinion, but be sure to do your homework when shopping around for a mortgage so that you can be confident the company that loans you money is reputable and honest. I will update this when more information is available, and a decision has been reached regarding the operations of The Mortgage Specialists Inc.

If you watch TV, you can’t help but see the commercials many of the nationwide real estate firms run. With millions allocated for advertising, these companies develop aesthetically pleasing spots presenting themselves as saviors for real estate buyers. The average viewer sees beautiful homes that average Jack and Jills buy with the help of their smiling agent. Is it really that simple? Let’s go in depth for some truth nuggets.

One advertisement I have seen recently says this - “We show you all the listings.” Really? I see evidence to the contrary. An agent I met recently from one of the enormous firms had not heard about exclusive buyer agency. Her thoughts on servicing buyers were very clear, “Well sure I’ll help someone buy a house, but I have better things to do than spend my time chasing down fizzbos (for sale by owner homes, aka FSBOs) and ‘entry only’ listings for a buyer.” This particular agent could not believe that I would ‘waste’ my time seeking out all available properties for my potential buyer. I tend to believe this is the case for the vast majority of agents who work with, but not necessarily for buyers.

Next time you see one of these ads, take a second to consider what you as a consumer would want from someone you hire. An Exclusive Buyer’s Agent really is the only way to go to ensure a comprehensive look at the market. We will show you all the listings.