Where WERE the Realtors? More on the Sub-Prime Fiasco
October 30th, 2007 Categories: Real Estate News
With over 2 million home buyers facing foreclosure, this is an important question, one I’ve been asking…
The Subprime Blame Game: Where Were the Realtors?
“Often, the buyer has spent months with the agent. And to hear agents tell it, they are indispensable guides through the
hazardous home-buying terrain. How is it, then, that millions of borrowers took on toxic subprime mortgages that could cost them their homes? Why did their agents not warn them off?” More
I found this article surfing out west at the Front Steps in San Francisco- and its a question I’ve been asking about around here.
Where did the Realtors go? Have a look, I’d appreciate other opinions on this. The article mistakenly claims that 99% of the agents work for the seller- but that is not true in North Carolina, where Buyer Agency is alive and well… or is it “so-called” Buyer Agency? Well we know that Realty Place claimed to be Buyer Agents but acted in their own and the seller’s interests often as not… what about the others?
So the legal question to ponder, If an Agent, regardless of a Buyer Agency agreement, acts in the interests of the seller, or the deal itself, he is then by definition Not acting as a Buyer Agent. Our state only allows for two types of Agency, the default setting is working for the Seller and the other is Buyer Agency. That would make many of these agents sub-agents of the seller, and with that could come huge liabilities, as in joint and several to the supervising Broker. Need some help out there from my attorney friends…
I had one of these in the past two years, I did try and warn the client, however she was a first time buyer, the originator was the client’s friend, and she went with a 2 yr adjustable, “because the payments were lower and she could always refinance.”
Buyer Agent Warning: We need to act in our clients interest at all times. It really is that simple. Just like we were taught… and the penalty for abusing that trust should be high. If our NAR is smart, they’ll get out in front of this one, sooner or later those DOJ peopple will be knocking at our doors asking tough questions. Any questions other thoughts? terry
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Terry – I couldn’t agree more – we have walked away from many deals that didn’t pass the smell test and weren’t the right thing for the buyer. Buyers in Charlotte are lucky to have a local real estate expert like you. – Cyndee
Thanks for finding our site. How is Charlotte doing? i actually have three properties in Cornelius at the Caldwell Station development, and keep hearing good things about your market.
Charlotte Real estate is strong- Average SOLD sf prices up 4.5% in September over 2006, but slowing with 18% fewer sales. Still solid investments here- Antiquity Townhouses in Corneliius is near your houses in Caldwell.