Not Using a Realtor May Be Hazardous To Your Wealth

 Just yesterday I received one of those calls, you real estate professionals know the ones, from a past client ( let's call him Jim) that had gone off on his own to make a purchase with out the help of his trained and experienced Realtor. Needless to say he was now in a quandary and did not know which way to turn. Six months ago he had purchased a home from a FSBO, mistake #1, we all know what FSBO's are, but for those of you who do not, it is simply someone trying to save a commission. Both seller and buyer agreed on the terms and price and made a deal. Now Jim needed some financing to make the purchase so he contacted a local small bank for a mortgage. I'm not sure where he went wrong but he secured an interest only balloon mortgage. Jim understood the interest only portion but did nor recognize the balloon portion as a big future problem. The closing went as planed and Jim took possession of his newly acquired property with visions of flipping this home and making an honest profit. He worked on the home for several months, renovating and making the necessary repairs to bring this property into good condition. The bills were piling up and so were Jim's revolving card balances. Now having finished the project Jim decided to rent the home due to a down turned real estate market in the Richmond area. He started inquiring about a refinance with a 30 year fixed loan with the current mortgage holder. Much to his surprise he was informed the "balloon" was due any payable on Dec 1 2008, only a week or so away! The current mortgage holder said they could not help because of the increased debt coupled with a reduction in credit scores disqualified him for a mortgage. This was not only the case with the current mortgage lender but two others produced the same result. Facing loosing his home and all the time , effort, and money spent he decided to call me. Realtors face problems like this every day, and steer their clients in the right direction. What may seem on the surface as saving money CAN COST YOU MORE! 

 Thanks for reading Rick Sale