Hello there guys and gals!
Not sure iof this is appropriate or allowable to post on here but i will give it a try ,as it will be a great lesson for others looking at investing in the USA.
I have had a problem with a certain US mortgage broker who apparently seems to feel fit to take hefty upfront “Fees” from foreigners to get them loans,but then not deliver on the agreement.
Since having this problem I have heard of many others getting in trouble the same way. (and with the same broker)I have since learned from this and i hope it is a lesson for others too! I will not pay big up front fees again but the problem was everyone was saying this is the only way they will do loans in this particular area of the states.
Is there anyone on the forum who has had the same or a similar problem and without giving any names can u share briefly with us the details.
We may be able to get together to work through the problem.all the best !
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Must admit Luke we hear this every day of the week from clients.
As a consequence if we are unable to deal with the US Lender direct we do not take the deal on board.
In most cases this is not a problem and our closing rate is extremely high. There are course areas of the US which we will not take application from due to the problem with low valuations, lenders requesting too many credit references and general poor customer service from the Banks.
All in all if you pick the right area and property financing in the US is not a problem.
Sorry that you have had such a bad experience.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Sorry to hear this happened to you, World Changer.
It takes courage to speak out, and do something about it. Have you considered lodging a legitimate complaint of breach of duty with their finance industry ombudsmen over there (assuming they have one similar to us)?
I hate to see others tripped up by the same broker while filling his coffer. If you can encourage others in the same position to come forward to take a class action, using a no-win no-fee litigation lawyer (again assuming they have one), it may be worthwhile action to take.
Thanks again for making it known to us in the forum. Hope you can get some kind of justice.
CT
Why use someone overseas when you can use Richard in Australia?
It happens in Australia too. Some contacted me recently wanting to money personally – $2000. He showed me a loan approval which turned out to be a contract with a broker to look for finance for him. Their fee was $2000 just to look, whether succesful or not. He wanted to borrow money from me to pay this broker to look for finance for him!
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hello guys and thanks for yr kindness Richard!
Good question Terry!
I actually researched this quite thoroughly,, Richard and others at the time unfortunately couldnt get these loans through in this area.He could only get 70% lvr from memory and not on under $50 K propertys ,(and not on cash out deals )which are the popular investment property costs in WNY,for a lot of buyers due to the high cash flow and less outlay upfront purchase price.
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Luke,
Without mentioning names, is this the broker who uses the “sliding scale commissions” where ther rate gets cheaper per deal and then after so many deals, no fee applies.
I think Alfred spoke to this guy some time ago when we were looking at refinancing our Buffalo deals. His fee’s were to expensive and I talked Alfred out of going ahead.
I wonder if this is the same guy.
That really dissapointing , sorry about the bad news, you didnt deserve that.
Regards
Providing Turnkey Real Estate Investments In The USA.
We also provide Owner Finance in a new emerging market.E-mail:[email protected]
web: http://www.gr8realestateinvestments.comActually, collecting any type of funds upfront is illegal when dealing with normal residential financing. The loans we originate as brokers are governed by laws called RESPA. Here is the link. From what I have been advised, even collecting an application fee is wrong. At the most, if it was collected, it should be returned if the broker couldnt produce a loan.
http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
You may have some recourse if your broker took an application and was attempting to secure residential financing.
If he was looking at using a private lender, hard money, or commercial, then these loans are not cover by respa. This is very common here in the US too that an investor will pay a due dillegence fee and not hear back from anyone for quite some time, only to be told the lender said no.
Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
On Skype at: Ben.Carmona-US.Investment.Loans
[email protected]
http://www.BenCarmona.comLending Nationwide Throughout the US
Thanks for all yr help and info on this guys ,
i really appreciate it!
It turned out really helpful when we all got together.For an update the broker has mysteriously out of the blue agreed to repay most of the money! So we have put a hold on the legal action
to see if we recieve our money back .
We are told this will happen by the 8th of November.We will keep u posted.
all the best !Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Fantastic news!!
On a personal front, I do not give up easily when others see it as “it’s too late”. My lawyer (Malaysia) is chasing a reculcitrant tenant for rent in arrears. Small fee but well worth the effort.
CT
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