Comments on: The Problem with Good Faith Estimates http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343571 Rhonda Porter Fri, 30 Oct 2009 14:59:16 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343571 Miche, it's difficult to give you advice--depending on what stage of the contract you're in and what you signed, you may or may not lose your earnest money. The lawyer who reviewed your information can direct you on whether or not you can "get out" of the sales agreement. Working with the builders lender can be dicey. <a href="http://raincityguide.com/2007/05/06/bribery-to-work-with-the-builder%E2%80%99s-preferred-lender/" rel="nofollow">I never recommend this because the lender is really working for the builder</a> (since they are fed business) and therefore, the builders lender rarely has your best interest at heart. I don't think it's right for builders to be able to demand or control that buyers go through "their lender". Do you have a real estate agent or did you "walk in" to the site (working with a site agent)? Miche, it’s difficult to give you advice–depending on what stage of the contract you’re in and what you signed, you may or may not lose your earnest money. The lawyer who reviewed your information can direct you on whether or not you can “get out” of the sales agreement.

Working with the builders lender can be dicey. I never recommend this because the lender is really working for the builder (since they are fed business) and therefore, the builders lender rarely has your best interest at heart. I don’t think it’s right for builders to be able to demand or control that buyers go through “their lender”.

Do you have a real estate agent or did you “walk in” to the site (working with a site agent)?

]]> By: Miche http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343568 Miche Fri, 30 Oct 2009 12:13:53 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343568 Yes Rhonda, its the builder's lender. They are already in the process of building the house and they have my earnest money already. I found another property for a better value and I like the broker's terms better so what about the other house? Can I get out of the sales agreement? Yes Rhonda, its the builder’s lender. They are already in the process of building the house and they have my earnest money already. I found another property for a better value and I like the broker’s terms better so what about the other house? Can I get out of the sales agreement?

]]> By: Rhonda Porter http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343497 Rhonda Porter Mon, 26 Oct 2009 17:28:05 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343497 Carolyn, thanks for stopping by to promote your book. Carolyn, thanks for stopping by to promote your book.

]]> By: Rhonda Porter http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343494 Rhonda Porter Mon, 26 Oct 2009 15:44:57 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343494 Are you stuck with this lender? Is it the bulider's lender? What is it that you don't like about the Good Faith Estimate? Did you get a good faith estimate from this lender prior to making your offer and writing that earnest money check? Are you stuck with this lender? Is it the bulider’s lender? What is it that you don’t like about the Good Faith Estimate? Did you get a good faith estimate from this lender prior to making your offer and writing that earnest money check?

]]> By: Carolyn Warren http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343490 Carolyn Warren Mon, 26 Oct 2009 04:19:21 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343490 Miche, you are not obligated to take this loan you are not happy with it. I believe what you have received are disclosures and not the final loan documents, the actual contract. Even if you have signed the Good Faith Estimate, you have just acknowledged receiving it and are not obligated to those terms. I am the author of the best-selling book, Mortgage Rip-Offs and Money Savers, and the newly published book, Homebuyers Beware. If you'd like, I would be happy to take a look at your Good Faith Estimate for you (no charge). Go to my website to contact me. My website is AskCarolynWarren.com. (Google my name, if needed.) Carolyn Warren Homebuyer's Advocate Miche, you are not obligated to take this loan you are not happy with it. I believe what you have received are disclosures and not the final loan documents, the actual contract. Even if you have signed the Good Faith Estimate, you have just acknowledged receiving it and are not obligated to those terms.

I am the author of the best-selling book, Mortgage Rip-Offs and Money Savers, and the newly published book, Homebuyers Beware. If you’d like, I would be happy to take a look at your Good Faith Estimate for you (no charge). Go to my website to contact me. My website is AskCarolynWarren.com.

(Google my name, if needed.)

Carolyn Warren
Homebuyer’s Advocate

]]> By: Miche http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343486 Miche Sun, 25 Oct 2009 04:57:57 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-343486 I already signed a purchase agreement for a new build and gave my 1000 earnest money. But when I recd my Good Faith Estimate I was not pleased and the lender is refusing to make any changes to it. He sent me a 50 page contract including the Truth in Lending Disclosure after having a lawyer look at it I am scared to sign it. What should I do? Walk away? I already signed a purchase agreement for a new build and gave my 1000 earnest money. But when I recd my Good Faith Estimate I was not pleased and the lender is refusing to make any changes to it. He sent me a 50 page contract including the Truth in Lending Disclosure after having a lawyer look at it I am scared to sign it. What should I do? Walk away?

]]> By: How to Shop for a Mortgage Originator | Mortgages Unzipped http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-324914 How to Shop for a Mortgage Originator | Mortgages Unzipped Thu, 11 Sep 2008 07:17:14 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-324914 [...] at the same time on the same day.   By the way, if a mortgage originator refuses to provide you a Good Faith Estimate when you’re asking for a rate quote: run.   There’s no excuse for not providing a [...] [...] at the same time on the same day.   By the way, if a mortgage originator refuses to provide you a Good Faith Estimate when you’re asking for a rate quote: run.   There’s no excuse for not providing a [...]

]]> By: What Drives an Active Online Community? | Seattle Real Estate ~ Rain City Guide http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-322620 What Drives an Active Online Community? | Seattle Real Estate ~ Rain City Guide Wed, 30 Jul 2008 22:27:56 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-322620 [...] The Problem with Good Faith Estimates by Rhonda [...] [...] The Problem with Good Faith Estimates by Rhonda [...]

]]> By: Worthwhile Real Estate Blogs To Read http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-187165 Worthwhile Real Estate Blogs To Read Mon, 01 Oct 2007 03:26:42 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-187165 [...] I already have the Opinionated Mortgage Broker on my blog roll but, here is another good mortgage blog hosted on the Rain City Guide. When you purchase a home and get a mortgage your lender is required to give you a good faith estimate. Here is a thoughtful post on why they are sometimes less that great. [...] [...] I already have the Opinionated Mortgage Broker on my blog roll but, here is another good mortgage blog hosted on the Rain City Guide. When you purchase a home and get a mortgage your lender is required to give you a good faith estimate. Here is a thoughtful post on why they are sometimes less that great. [...]

]]> By: Jillayne Schlicke http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-180097 Jillayne Schlicke Thu, 13 Sep 2007 23:26:19 +0000 http://raincityguide.com/2007/05/27/the-problem-with-good-faith-estimates/#comment-180097 Hi Carolyn, Government has been regulating professionals for a long time now. An example would be real estate agency laws, or the Bar Association, created by government to regulate the conduct of attorneys. Rhonda, I believe the vast majority of LOs want to conduct their business in an ethical manner, they have just not received any guidance as to what that means, and no enforcement of ethical codes of conduct. Very, very few LOs are out to commit fraud/violate the law. Very, very few LOs are ethically gifted and always know what to do when faced with any ethical dilemma. The majority are in the middle; looking for a beacon. Within any profession, the government doesn't regulate ethical conduct, our government regulates laws. It is up to industry trade groups such as, in the above example, the Nat'l Assoc of Realtors and state Bar Associations to regulate the ethical conduct of its members. Regulating ETHICAL conduct has never been the job of government. Hi Carolyn,

Government has been regulating professionals for a long time now. An example would be real estate agency laws, or the Bar Association, created by government to regulate the conduct of attorneys.

Rhonda,

I believe the vast majority of LOs want to conduct their business in an ethical manner, they have just not received any guidance as to what that means, and no enforcement of ethical codes of conduct.

Very, very few LOs are out to commit fraud/violate the law.
Very, very few LOs are ethically gifted and always know what to do when faced with any ethical dilemma.

The majority are in the middle; looking for a beacon. Within any profession, the government doesn’t regulate ethical conduct, our government regulates laws. It is up to industry trade groups such as, in the above example, the Nat’l Assoc of Realtors and state Bar Associations to regulate the ethical conduct of its members. Regulating ETHICAL conduct has never been the job of government.

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