Please don’t ask me to help you beat the system. I’m in this business for the long haul!

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

I'm in real estate for the long haul!It seems like lately I get more and more phone calls from frustrated prospective buyers that wish to capitalize on the low prices of houses in our area combined with some pretty amazing low interest rates.

The problem is, these would-be investors don’t qualify for an owner-occupant loan, but at the same time, do not wish to pay either the additional down-payment or the higher interest rates for loans on investment property.

So they ask me to come up with a workaround to help them beat the system. And I have an answer for them.

NO!

Do they honestly think that I will risk fines, imprisonment, or the loss of my livelihood for a mere commission?

Do the truly believe that I would sacrifice my integrity and professional image for a few measly dollars?

Do they actually realize that what they are asking me to do is criminal? As a matter of fact, when they start talking about dragging an appraiser or a loan officer in it is actually a criminal conspiracy to defraud.

As a former once president stated so ineloquently, I am not a crook. I will not participate in schemes or conspiracies. I’m not in this business to make a fast buck.

I’m in it for the long haul!

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Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. John MacArthur 08/10/2010 08:21 AM
  2. C Tann-Starr 08/10/2010 04:51 PM
  3. Chris Ann Cleland 08/31/2010 12:12 PM
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Topic:
Home Buying
Location:
Georgia Coweta County Newnan
Groups:
Diary of a Realtor
Realtors®
The Lounge at Active Rain
"Whacked"!!!
Club Chaos
Tags:
integrity
mortgage fraud

Comments 81 New Comment

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Rainer
154,608
Ted Tyndall
FL Homes for Sale-Palencia, World Golf Village,Nocatee,St. Augustine
Davidson Realty Inc.

Richard, a great topic. anyone stooping to that level with a customer deserves to get caught.

August 10, 2010 05:43 PM
Rainmaker
779,623
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

Excellent stuff here Richard.  I always say very politely that as a professional, my license is not worth losing over their hair-brained ideas!  :)

August 10, 2010 06:06 PM
Rainmaker
506,195
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate

While there are those of us , me included, who hold theirselves to "the higher standard" there are some who don't. It your own personal integrity, how we live ourlives and stay true to ourselfves.  No everyone lives this way, sad to say.

Patricia/Seacoast NH

August 10, 2010 06:46 PM
Rainer
35,927
Jennifer Archambeault
An Austin Texas Realtor
Cardani Group, REALTORS® - Austin Texas

Amen Brother!  I just turned down an offer from a client, that was actually family, as he was asking me to do something that would jeopardize my license.  No way, Jose! 

August 10, 2010 06:54 PM
Rainmaker
1,085,129
Bryant Tutas
Broker/REALTOR, Tutas Towne Realty, Inc
Bryant Tutas-Tutas Towne Realty, Inc

Lenders are getting wise to these shenanigans. It's amazing how many short sales I have done for folks who bought their properties as owner occupants yet never moved in. It's always the same story....."My job didn't pan out so we didn't move to Florida" 

Good job just saying NO Richard.

August 10, 2010 07:01 PM
Rainmaker
1,732,623
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.
WHISPERING PINES REALTY
Richarde..Way to go. This only enhances our image when we won't bend the rules.
August 10, 2010 07:05 PM
Rainmaker
177,290
Steve Baklaich
RE/MAX Results St Cloud Mn real estate

Richard: Thank you for writing this, I have not been approached but I have been called for a market on an investment property that was supposed to be owner occupied when it was only used as a rental (I did not take the listing) There is actually a neighborhood 20 minutes north of us where this buying as an owner then using an entire group (real estate, banker, appraiser, closer etc.) to scam the loan company came crashing down. A little under 2 years ago out of 50 homes in the neighborhood 36 of them were in foreclosure. There is a lot more to the story, last I heard it was headed in the direction of lawsuits and jail time. People who ask for short cuts end up doing a lot of damage and usually cost the people who have to clean up the mess more than they took, it is never worth it.

August 10, 2010 07:05 PM
Rainmaker
996,659
Karen Fiddler, Broker/Realtor
Laguna Beach & Lake Arrowhead, CA (949)510-2395
HOM Sotheby's Intl Realty, 949-510-2395

Yeah...I don't look good in orange and really like my license and my freedom. ugh! Sad thing is...they might find someone who will help them. But it won't be me.

August 10, 2010 08:04 PM
Ambassador
1,227,260
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

Stick to your guns Richard! I have a piece of paper I make buyers sign stating they will occupy the home and understand they risk fines and penalties if they do not.

August 10, 2010 08:06 PM
Rainmaker
432,976
Lana Robbins Realtor ® Licensed Real Estate Broker
Tampa Bay, Florida Real Estate
Aloha Kai Real Estate

Hi Richard. Fortunately I have yet to be asked to break rules. People know better than to pull that with me here in Florida where the rules are very strict. I am not losing my license for anyone....

August 10, 2010 08:36 PM
Ambassador
883,319
Lane Bailey
Realtor & Car Guy
Century 21 Results Realty

Usually when I am asked this question, it is by someone that thinks the rules are getting bent... not broken.  But, every once in a while...

August 10, 2010 09:47 PM
Rainmaker
123,638
Iran Watson
Marietta Real Estate Agent - Photographer
Georgia Elite Realty

When people hint at (or flat out ask me) to find a loop hole or break the rules, I usually respond, "Have I told you about my ongoing relationship with law enforcement as a whistleblower...?"  That usually puts an end to those request fast.

August 10, 2010 09:58 PM
Rainmaker
278,561
Jerry Murphy
Anthem AZ Real Estate
Long Real Estate

So many people are looking for easy ways to get rich quick.  Good for you to say no Richard.  It's never worth the potential trouble things like this may lead to.  Best of luck to you.

August 10, 2010 10:12 PM
Rainer
147,103
Deborah "Dee Dee" Garvin
WJ Bradley Mortgage Corp.
W. J. Bradley Mortgage Corp.

My standard line:  "I love you...but not enough to lose my career".  Bye bye.

August 10, 2010 10:24 PM
Rainer
41,321
Rob Albertson
Realty Austin

I recently had a situation with an "investor" promising that if I could get this done, it would be the first of many deals we'd do together.  But if I didn't, he'd just find some agent hungry enough to bend the rules.  I didn't doubt he could find one, but it wasn't going to be me.

August 10, 2010 11:17 PM
Ambassador
883,444
Margaret Woda
Maryland Real Estate & Military Relocation
Long & Foster Real Estate, Inc., Crofton, MD 21114

Yes, they do... they think you'll do anything for a commission.  They can't imagine an ethical real estate professional.

August 10, 2010 11:27 PM
Rainmaker
1,075,452
Bill Burchard
Broker, Realtor - Murrieta Homes For Sale, Califor
3B Realty: 951-347-3818, CA

I think you did the right thing by turning them away, Richard… and, for me, the best reason you gave was to maintain your integrity and professional image. 

August 11, 2010 01:24 AM
Ambassador
895,064
Missy Caulk
Realtor - Ann Arbor Real Estate
Missy Caulk TEAM

I just say, No. A true investor knows what they are doing...newbies...not so much. When you have been in the business a long time you can smell them, from the first breath onward.

August 11, 2010 09:08 AM
Rainmaker
973,701
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

Richard, apparently these people don't listen to the news, do they? Of course, if someone gets caught, it won't be them (that's what they think). But it won't be you either! Because you have integrity and are honest!

August 17, 2010 02:38 PM
Rainmaker
906,013
Tony Marriott
Associate Broker, REALTOR
Haven Express @ Keller Williams Arizona Realty

Those that don't, won't or can't play by the rules are announcing to the world that they are incompetent and should be avoided.

September 06, 2010 10:18 AM
Anonymous
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Ambassador
1,645,378

Richard Weisser

Richard Weisser Coweta Newnan Homes for Sale
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