David Saks: Real Estate Practice : Lesson 3569

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 3569


People are losing their homes everywhere because of

some bad schnooks

that call themselves lenders, mortgage brokers, appraisers, home improvement contractors; people who give bad names to those who legitimately, lawfully and honorably claim these titles within our industry.

These are some of the signs to watch out for so you can avoid these schnooks:

1. They target vulnerable homeowners for cash-out refinancing deals when they know very well that borrowers are distressed and in need of cash because of debt, unemployment or medical reasons.

2. They sell properties for much more than their worth using phony appraisals.

3. They use high pressure sales tactics to sell needless home improvements and finance these improvements at high interest rates.

4. They encourage a borrower to lie about his or her income and expenses or the available cash for a down payment in order to get a loan.

5. They 'strip' the homeowners equity from their home and convince the homeowner to refinance the home over and over when there's no benefit. The lender knows the borrower can't afford the home and they steal the equity in the home when they foreclose.

6. The lender knows that they're lending the borrower more money than they could ever repay.

7. They charge fees for unnecessary or nonexistent services and products, or 'fee pack'.

8. They pressure borrowers to sign for high-risk loans  such as interest only loans with ridiculous pre-payment penalties.

9.They charge higher interest rates to borrowers because of their race or national origin and not because of their credit worthiness or credit history.

Can you think of anything not covered here?

What have you seen in your experience as a real estate professional?

David Saks

Time&Temp Memphis

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Comment balloon 2 commentsDavid Saks • August 04 2014 06:48PM


Hi David, while I am sure there are scammers out there. I am also glad to say I don't see many of the things on you list at least here in South Georgia. Thanks for sharing. But we do have to keep a watchful eye out on our surroundings.

Posted by Ted Glover, ABR in Moultrie, Georgia 229-854-5422 (Alderman Classic Realty, LLC) about 6 years ago

Thanks, Ted.

Posted by David Saks ((retired)) about 6 years ago

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