Recently a couple of my clients made an offer on a foreclosed home in Arlington Heights. The lender who owns the home required that buyers be prequalified by them. The buyers called one of their loan representatives and shared their income, credit and assets information. My buyers were extremely well qualified and the loan representative made it clear that he would love to do the mortgage for the purchase.
Unfortunately, the loan representative went too far and also implied that if my buyers used the lender to finance the purchase that they could get a better deal on the home purchase! Tying a mortgage to a home purchase is illegal.
A lender financing the purchase of one of their properties isn’t illegal, but I don’t think it’s a smart choice. In such a situation the company who owns the property will also be the company who hires the appraiser for the loan. Remember, this is the mortgage company who made the bad loan in the first place!
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
