The realtors should be responsible for the foreclosures and the fall out?
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As a Realtor I show you homes and their prices. As a broker, I sit down with you and show you how much you have to pay every month should you borrow X amount of money. If it's an adjustable rate loan, I tell you about the adjustable rate and what impact it would make on your future payments and loan terms. It's your job to determine if you can afford your home or not.
Lets assume I tell you that you cannot afford this home and you decide to rent because of what I told you. What would you think of me should the home increase in value in the next few years?
Stop thinking like a liberal and be responsible for your own actions.
Regards
wrong.
realtors do care they live on repeat business. the buyer must know ALL FACTS before buying.
the federal government has already stated that they are going after these people...so they agree with you.
they are going after the mortgage companies, brokers and realtors that made the big commissions off of these people.
this is why there are many mortgage companies closing or going bankrupt.
this was announced in pres bush's last speech...
stay tuned for more updates...
good luck :)
The buyer is responsible for HIS decision to buy something he couldn't afford.
People must take responsibility for their actions. It is NOT the realtor's fault.
Realtors are not directly involved in financing...that's the job of the loan officers, so you are blaming the wrong profession.
A Realtor's name doesn't even appear on the loan application or ANY of the loan documents other than the SALES contract and the HUD as part of their commission payout from the SALE of the house.
A Realtor makes nothing on the loan, and in fact, it's illegal for them to even accept a referral fee.
The foreclosures are due to a multitude of reasons. First and foremost buyers in the 2004/2005 year overpaid for property. That is really the problem; the demand was greater than supply. In addition people took out crazy adjustable rate, option arms and interest only loans. Now people can't afford their loans and can't sell for what they paid for in 2004/2005. I am an appraiser and saw increases in value of about 15-20% per year during these two years. It is really negligence on the buyers end. There is some blame to be on the bankig industry but, the consumer should take it upon themselves to be educated in what type of loan they are getting into. It's one thing if the banking industry did not explains the terms of the loan clearly and you signed away but it's another thing if you have been told about the risks and you still took the loan to get into the property. A good comparison would be should credit card compnies be held liable if someone maxes out their credit card and can't pay; I don't think it's fair. If there is more regulations on the banking industry the market will continue to tank because regular people will not be able to get mortgages.
You ASSuME! Your ignorance is clearly evident. There is no one person or occupation responsible. Nobody could have known what is happening in this market now.
I care for my buyers and sellers and never would want a single one of them to be hurt in any way, shape or form.
A realtor who would take advantage of their buyer and encourage them to over buy has no foresight. Most realtors recognize that today's buyers are tomorrows sellers and that repeat business is dependent on today's performance.
Realtors are not directly involved with financing. They might refer a client to a lender they have used in the past that has done a good job for other clients, but after that it is the buyer's duty to obtain financing and understand what they are getting into.
I inform all of my buyers to interview different lenders to obtain the financing that works best for them. Also I make sure to educate them to look at other factors besides interest rates and to pay attention to the fine print as far as fees charged, pre-payment penalties, etc.
The buyer has the right to withhold their personal financial information from me as a Realtor. The only thing required for them to provide to me is their pre-approval letter showing they are able to obtain a loan for X amount.
I have actually sent several potential buyers to as well as try to send every 1st time buyer to a lender I've used in the past. He has no hesitation to advise clients if they are not ready to buy and if they need to that they should correct x and y before thinking about purchasing. I've lost some deals because of it, but I'd rather have them become good clients for life in the next few years, then risk foreclosure or ruining their credit further as well as having a bad experience with me involved whether indirectly or not.
So please before you continue bashing my profession, realize not all of us are sharks or out to hurt people. I love what I do. Just like every profession there's some good, some bad and some just down right horrible. But no need to clump us all together as one terrible profession.
Sorry you had a bad experience and hope your next is much better!
Southeast MI Realtor
Actually, the Realtor is supposed to act as the client's agent, meaning the Realtor is to do what the clients want. They may not necessarily want what is best for them.
For example, Realtors will generally want their clients to have some sort of pre-approval letter from a lender to make an offer to purchase the house that they want. They take the lender's word for it that the clients completed their mortgage application without lying about their income, and are willing and able to make the payment. Logically, buyers shouldn't make an offer on a property if they can't afford the payment that is listed on the preapproval letter.
Realtors also don't ask the clients what kind of mortgage they have applied for, because they are not mortgage brokers. They help in the sale of the property but not so much in the actual financing. So they won't necessarily be aware of the fact that the clients have gotten an Adjustable Rate, Interest Only mortgage that will be way too expensive in a couple of years.
They'll just know that the clients have been approved for a loan to purchase the house, and that the clients have agreed to make an offer, based on their expectations to be able to make those payments. The Realtor is then instructed by their client to make the offer, and the Realtor has to do it, or break the contract.
The real estate agent works for the buyer and the buyer tells the real estate agent what he is looking for. Both of them have a responsibility to keep each other informed of any material facts about the transaction. These might include any damage or disrepair to the property, a highly over-valued property that is not worth the high asking price, or the inability to afford the projected payments. If the buyers say they won't be able to afford the mortgage, then the transaction should stop and the lower offer made, smaller house searched for, or higher down payment offered.
Both parties have responsibilities to each other, and a number of the foreclosures are a result of a lack of communication between the Realtor, their clients, and the mortgage companies.
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