Exposing the Unscrupulous Practices of the Mortgage Broker

Mortgage brokers are probably not any more unscrupulous than any other type of business. Those who meet the terms of their payment schedules will probably speak of them in glowing terms. Those who encounter difficulties with their payment schedules may see some outrageous practices by the mortgage broker’s collection department.

Most mortgage companies make every effort to befriend new customers. Since the interest earned over the life-span of the mortgage is the life blood of the mortgage company, each customer is valued as an asset. However, if a mortgage falls into arrears, mortgage brokers will invariably do “whatever it takes” to protect their interests.

There are countless anecdotal stories of partial payments being solicited to forestall foreclosures, which do not actually do so. Even though promises are given verbally, never believe any statement by a collections department person until it is documented. Anyone in default of his payment schedule is fair game to the unscrupulous collectors dedicated to improving the mortgage broker’s financial position.

Sometimes, under-the-table deals are made between mortgage brokers and those willing to buy a troubled property as an assumption. What should have been a seller’s equity in a property can be converted into a “needed” improvement on the property. Anyone facing a potential foreclosure should employ an attorney to protect their interests in any possible sale of a distressed property.

The biggest issue to remember regarding unscrupulous practices within any type of business is that the issue involves money. Even though trust and ethics are an assumption we want to make regarding those with whom we deal, some individuals are not to be trusted.

Mortgage brokers do employ unscrupulous practices in many ways. They intimidate, threaten, and anything else that serves their business motive of profits. Anyone in debt to anyone must realize that when it involves money, almost everyone does whatever it takes to protect themselves. It that respect, mortgage brokers are no different.