Financing in 19145>Question Details

Jo Daives, Home Buyer in Pennsylvania

Does a mortgage broker have the right to prevent me from renting a property.?

Asked by Jo Daives, Pennsylvania Mon Mar 24, 2008

I started to buy a house but the mortgage broker claims the house that the appraisal came back less than what the house was worth despite the fact that the owner has two appraisals for the same house. the difference is significant but now the broker is preventing me from renting the property, claiming that I am his customer.

Am I obligated to do business with this broker, Do I have the right to change brokers ? Can this broker threaten the seller and prevent me from living in this home. HELP

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Wow! I would recommend calling the Department of Financial Institution or your State Att'y General on this. Or a lawyer. There are a lot of various factors you mention in regards to this question.

Was there a real estate agent involved with this sale? Ask them for guidance to getting your question answered, or call a local real estate broker and ask him or her to point you to answers.

From your question, there are several layers to be sorted out. You need specific advice.
1 vote Thank Flag Link Mon Mar 24, 2008
Having a mortgage broker is similar to an at will employment situation. Eithe rone of you can walk away at either time. He has no recourse.

I am a mortgage broker. If I can be of further assistance, please let me know.

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes Thank Flag Link Sat Jan 17, 2009
Dear Joe
You are not tied to this broker what so ever. I am a broker in PA,DE, MD, and NJ. See with a broker as long as you do not sign a contract befor your closing then you can pick up and go with whom ever you wish. And as a buyer after the purchuse you can do what ever you want with the home. Feel free to contact me by
phone: 302-260-2015 or
by e-mail- jriceacn@yahoo.com
ill see if there isnt something I can do for you.
Web Reference: http://www.roselandmtg.com
0 votes Thank Flag Link Fri Jan 16, 2009
Answers:

Am I obligated to do business with this broker?
No, unless your state allows and you have signed a contract guaranteeing fees to your broker in the event you decide to close with someone else. Florida's Mortgage Broker Business Contract is an example of such a form (it is a mandatory form), but I have never heard of a broker attempting to have it enforced unless the borrower can be shown to have intentionally taken advantage of the broker.

Do I have the right to change brokers?
Yes.

Can this broker threaten the seller and prevent me from living in this home?
No, and to do so strays dangerously close to tortious interference of the contract you and your future landlord wish to execute.
0 votes Thank Flag Link Wed Jun 25, 2008
Jo,
I am not a lawyer nor will I try to give you legal advice. My real estate license, and my E & O insurance will not allow it either, but I can and will tell you this, get with an attorney quickly. Make sure you have all of your facts together for him so he can advise you. Good luck!

Jim Graham
Prudential John M. Brabham
Real Estate
803-775-1201
jimgraham@wesellsumter.com
http://www.sumterrealestateforsale.com
0 votes Thank Flag Link Tue Jun 24, 2008
Jo,

Holy cow. You have no obligation to that broker and they cannot stop you from renting. I can't believe in 2008 some unscruplious brokers are still practicing this and do not need to be in the business. I would get a referral from someone that has a great reputation or maybe even a couple people. And compare GFE's to one another. It sounds like the service you our being provided is very poor. It also sounds like the broker is very desperate for business if he is actually making threats and trying to force you to use him.

I would get a new lender absolutely

Brent Bester
Mortgage Professional
614-622-8916
0 votes Thank Flag Link Tue Jun 24, 2008
Joe,
The moretgage broker you are using seems to be unethical in his business practices. If you are the home buyer it is your write to work woth whomever you choose to. The first thing that you should do is have the person you are going to work with next for the financing review all the appraisals to see which one is the most accurate. I work for a local bank so i know how strict the guide lines are when it comes to appraisals. i'd be more then happy to advise you in ane way i can regarding your transaction.
Thank you,

Alina Kanevsky
Lending Specialist

Mid Atlantic Capital
405 Kings Highway South
Cherry Hill, NJ, 08034
Phone: 856-429-2207
Toll Free: 800-232-5171 ext. 501
Fax: 856-429-4118
Cell: 267-474-8050

Email: akanevsky@midacap.com
Web Address: http://www.midacap.com
0 votes Thank Flag Link Tue Jun 24, 2008
That mortgage broker is unethical and a liar if what you say is true. You are NEVER obligated to work with a broker, and right up to the settlement table you can change your mind. Run, don't walk from this bad egg.
0 votes Thank Flag Link Tue Mar 25, 2008
You aren't obligated to the Mortgage Broker at all. You should be able to rent the home if you wish. Is there any chance that the seller will come down in price so you will be able to purchase it using the existing appraisal? I don't know all of the details, but you may want to get a new mortgage Boker and a new appraisal if you think the value didn't come in correctly. Contact me if you need any help.
Michael


Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net
http://www.mortgagepro.instantlender.com
0 votes Thank Flag Link Tue Mar 25, 2008
Jo,
It seems to me the mortgage broker is out of his commission due to a low appraisal and is exhibiting poor behavior. You don't need a mortgage to rent this property, therefore you don't need a mortgage broker!
Web Reference: http://www.ramblequist.com
0 votes Thank Flag Link Mon Mar 24, 2008
dont' buy the house, problem solved
it will be cheaper in a few years.

anyways

good luck
0 votes Thank Flag Link Mon Mar 24, 2008
I would definitely contact another mortgage broker if your current one cannot provide the service. Try Matt Ghiasi from Elite Financial and tell him your problem. See what he has to say 312-804-1250. You can tell him I sent you. Agnes Donnadieu, REALTOR, http://www.thecondoexperts.info, agnes@thecondoexperts.info
0 votes Thank Flag Link Mon Mar 24, 2008
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