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!

close

Re-Blogged 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
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

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

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

August 10, 2010 05:43 PM #63
Rainmaker
786,164
Paula McDonald
Chevaux Group, PLLC - The Woodlands, TX
CHEVAUX Group ~ The Woodlands, TX 936-203-0279

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 #64
Rainmaker
507,095
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

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 #65
Rainer
35,927
Jennifer Archambeault
Cardani Group, REALTORS® - Austin Texas - Austin, TX
An Austin Texas Realtor

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 #66
Rainmaker
1,085,735
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, 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 #67
Rainmaker
1,741,398
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.
Richarde..Way to go. This only enhances our image when we won't bend the rules.
August 10, 2010 07:05 PM #68
Rainmaker
177,290
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN

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 #69
Rainmaker
1,003,590
Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (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 #70
Ambassador
1,229,122
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

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 #71
Rainmaker
433,977
Lana Robbins Realtor ® Licensed Real Estate Broker
Aloha Kai Real Estate - Clearwater, FL
Tampa Bay, Florida 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 #72
Ambassador
883,319
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

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 #73
Rainmaker
123,638
Iran Watson
Georgia Elite Realty - Marietta, GA
Marietta Real Estate Agent - Photographer

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 #74
Rainmaker
279,636
Jerry Murphy
Long Real Estate - Anthem, AZ
Anthem AZ 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 #75
Rainer
147,103
Deborah "Dee Dee" Garvin
W. J. Bradley Mortgage Corp. - Carlsbad, CA
WJ Bradley Mortgage Corp.

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

August 10, 2010 10:24 PM #76
Rainer
41,321
Rob Albertson
Realty Austin - Austin, TX

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 #77
Ambassador
885,041
Margaret Woda
Long & Foster Real Estate, Inc., Crofton, MD 21114 - Crofton, MD
Maryland Real Estate & Military Relocation

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 #78
Rainmaker
1,081,662
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor - Murrieta Homes For Sale, Califor

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 #79
Ambassador
895,064
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Realtor - Ann Arbor Real Estate

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 #80
Rainmaker
973,701
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

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 #81
Rainmaker
906,969
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR

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 #82
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Richard Weisser

Richard Weisser Coweta Newnan Homes for Sale
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