The local Realtor Boards have been advised of a clever new scam on Craigslist. The fraudster copies a legitimate real estate rental ad from Craigslist or from other online sources, and then re-posts the ad on Craigslist with their contact information.
They usually post the rental rate far below what normal market price would be so they attract a lot of interest. They may likely have difficulty actually showing you the property you are interested in, but in some cases, they've actually been able to get access to the house or condo to show it. Once it comes time to rent, they claim to be headed out of town, or need the money right away so they don't rent to someone else and ask that the rental money be sent via FedEx (in cash), Western Union or some other wire service.
Once the funds are sent, the fraudster has free use of the money with little ability for the potential renter (victim) to get it back. Of course, these people do not own the property or represent the owners, they're simply committing fraud, and taking the money and running. Sometimes the funds are sent to the Caribbean, Africa, or Europe... but most folks will not ask you to mail cash or use a wire service for your rent money.
Obviously, a bit of common sense is in order, but apparently, these are professional con-artists and seem pretty convincing.
If the person you're dealing with claims to be a Realtor - ask to see their license and their ID. You can check on the status of ALL Florida Realtors here: http://MyFloridaLicense.com
If you're dealing with someone claiming to be the owner, pull up the tax record for the property and check their ID against the tax record:
Broward:
http://www.bcpa.net/search.asp
Miami-Dade:
http://www.miamidade.gov/pa/property_search.asp
Palm Beach:
http://www.pbcgov.com/papa/aspx/GeneralSearch/GeneralSearch.aspx
If the person you're dealing with claims to be representing the owner, they should have some formal document acknowledging this, like a Power of Attorney... but these are a bit more difficult to verify.
Again, let common sense prevail, and don't fall for the scam just because it sounds like a once-in-a-lifetime deal.
All the best,
--Dr. Branon A. Edwards, ePRO
Licensed Florida Real Estate Broker and Mortgage Broker
Direct Phone: 786-417-4910
Private Fax: 786-524-5747
mailto:Branon@InvestFloridaRealty.com
VISIT OUR WEBSITE:
http://www.InvestFloridaRealty.com
VISIT OUR BLOG:
http://www.InvestFloridaRealty.BlogSpot.com
Real Estate Office:
Aqualand Realty, Inc
8359 Stringfellow Road
Saint James City, FL 33956
Mortgage Office:
Mainland Mortgage Corp
351 S. Cypress Rd. Ste. 303A
Pompano Beach, FL 33060
Thursday, July 23, 2009
Sunday, July 19, 2009
CAN A MORTGAGE PREAPPROVAL FALL THROUGH??
CUSTOMER QUESTION: Can a Mortgage PreApproval Actually Fall Through?
ANSWER: Yes, of course it can fall through. Generally speaking, what you get when you first apply for a mortgage is a PreQualification, not a PreApproval. The mortgage broker checks your credit, enters all your income data into the computer system, and then puts in basic information about you and the property you want to buy.
Based on this information, the mortgage broker generally issues a PreQualification Letter, which basically says that given the information you've provided thus far, you seem qualified for the mortgage you're requesting.
A PreApproval actually comes from ALL of your information not only being in the system, but also verified by the underwriter. In other words, they've seen your tax returns, spoken to your employer, and know that if the property appraises, they'll give you the loan. Most companies do not go this far until they're actually in the process of trying to actually close your loan. Frankly put, the underwriters want EVERYTHING before they commit.
Regarding either of these documents falling through - they can fall through for a variety of reasons including information not being verified, the property not appraising for the proper amount, the buyer not having the proper amount of funds in reserve to provide the lender with a proper comfort level, etc. In addition, most mortgage companies pull a copy of the buyer's credit report again just before closing to make sure there haven't been any major changes.
The changes that most frequently sabotage a prequalification or approval are change in credit score due to recently reported new information (like an old collection just popping up finally), or the buyer actually changing their credit patterns. If you normally make your regular monthly payments and you suddenly pay your balances in full, this actually causes a temporary drop in your credit score - basically, the scoring system assumes you paid it off using a balance transfer from another account, so it deducts points for a cycle or two to double-check. Other credit-changing items include additional credit reports being pulled by other creditors - including other mortgage brokers, if you're shopping around. A lot of people make the mistake of financing the furniture for their new house before they close, which can show up at just the wrong moment. Still others make lots of major changes all at once - like buying a car as well.
By the way, shopping around for a good mortgage rate is not a bad idea. The scoring systems generally count any inquiries that happen within a 14-day period as one inquiry - but only after the end of the cycle. In other words, if I pull your credit today, another broker pulls it tomorrow, and another one in 8 days, all 3 will lower your score as you go, but at the end of the cycle, they'll be re-counted as one inquiry since they all fell within a 2-week period. The same holds true for inquiries when car shopping.
The best idea, however, is to have your credit pulled initially by the company you think has the best chance of earning your business - since they'll actually show the best score. Then, you ask the broker for your actual credit scores - rather than allowing the other companies to pull your credit - just give them the scores, they should be able to do their jobs without needing to actually pull the report. Of course, if you opt to go with one of the other companies, they'll eventually need to pull the actual report.
That's just a general overview... hope it answers your question. If you have additional questions, please just ask.
Thanks for the opportunity to earn your business.
All the best,
--Dr. Branon A. Edwards, ePRO
Licensed Florida Real Estate Broker and Mortgage Broker
Direct Phone: 786-417-4910
Private Fax: 786-524-5747
mailto:Branon@InvestFloridaRealty.com
VISIT OUR WEBSITE:
http://www.InvestFloridaRealty.com
VISIT OUR BLOG:
http://www.InvestFloridaRealty.BlogSpot.com
Real Estate Office:
Aqualand Realty, Inc
8359 Stringfellow Road
Saint James City, FL 33956
Mortgage Office:
Mainland Mortgage Corp
351 S. Cypress Rd. Ste. 303A
Pompano Beach, FL 33060
Thank you for the opportunity to
EARN your business.
ANSWER: Yes, of course it can fall through. Generally speaking, what you get when you first apply for a mortgage is a PreQualification, not a PreApproval. The mortgage broker checks your credit, enters all your income data into the computer system, and then puts in basic information about you and the property you want to buy.
Based on this information, the mortgage broker generally issues a PreQualification Letter, which basically says that given the information you've provided thus far, you seem qualified for the mortgage you're requesting.
A PreApproval actually comes from ALL of your information not only being in the system, but also verified by the underwriter. In other words, they've seen your tax returns, spoken to your employer, and know that if the property appraises, they'll give you the loan. Most companies do not go this far until they're actually in the process of trying to actually close your loan. Frankly put, the underwriters want EVERYTHING before they commit.
Regarding either of these documents falling through - they can fall through for a variety of reasons including information not being verified, the property not appraising for the proper amount, the buyer not having the proper amount of funds in reserve to provide the lender with a proper comfort level, etc. In addition, most mortgage companies pull a copy of the buyer's credit report again just before closing to make sure there haven't been any major changes.
The changes that most frequently sabotage a prequalification or approval are change in credit score due to recently reported new information (like an old collection just popping up finally), or the buyer actually changing their credit patterns. If you normally make your regular monthly payments and you suddenly pay your balances in full, this actually causes a temporary drop in your credit score - basically, the scoring system assumes you paid it off using a balance transfer from another account, so it deducts points for a cycle or two to double-check. Other credit-changing items include additional credit reports being pulled by other creditors - including other mortgage brokers, if you're shopping around. A lot of people make the mistake of financing the furniture for their new house before they close, which can show up at just the wrong moment. Still others make lots of major changes all at once - like buying a car as well.
By the way, shopping around for a good mortgage rate is not a bad idea. The scoring systems generally count any inquiries that happen within a 14-day period as one inquiry - but only after the end of the cycle. In other words, if I pull your credit today, another broker pulls it tomorrow, and another one in 8 days, all 3 will lower your score as you go, but at the end of the cycle, they'll be re-counted as one inquiry since they all fell within a 2-week period. The same holds true for inquiries when car shopping.
The best idea, however, is to have your credit pulled initially by the company you think has the best chance of earning your business - since they'll actually show the best score. Then, you ask the broker for your actual credit scores - rather than allowing the other companies to pull your credit - just give them the scores, they should be able to do their jobs without needing to actually pull the report. Of course, if you opt to go with one of the other companies, they'll eventually need to pull the actual report.
That's just a general overview... hope it answers your question. If you have additional questions, please just ask.
Thanks for the opportunity to earn your business.
All the best,
--Dr. Branon A. Edwards, ePRO
Licensed Florida Real Estate Broker and Mortgage Broker
Direct Phone: 786-417-4910
Private Fax: 786-524-5747
mailto:Branon@InvestFloridaRealty.com
VISIT OUR WEBSITE:
http://www.InvestFloridaRealty.com
VISIT OUR BLOG:
http://www.InvestFloridaRealty.BlogSpot.com
Real Estate Office:
Aqualand Realty, Inc
8359 Stringfellow Road
Saint James City, FL 33956
Mortgage Office:
Mainland Mortgage Corp
351 S. Cypress Rd. Ste. 303A
Pompano Beach, FL 33060
Thank you for the opportunity to
EARN your business.
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