Tuesdays Tip: When Realtors Speak Nonsense

I admit it: I watch the Today show every morning. Not because I enjoy Matt, Meredith, and Al, but rather because there is limited stimulating television at 7am. It also gives me an opportunity to start my day off realizing how many stupid people there are in the world. Not just the screaming lunatics behind Al Roker as he does the weather, although I do wish they knew how ridiculous they look. I am refering to some of the "experts" they bring on the show, along with the non-celebrities present to get their 30 seconds of fame.

In recent months, one such "expert" has really started to annoy me: Barbara Corcoran. Yes, the woman you hear them say "And next we'll hear from our real estate expert, Barbara Corcoran, on what to do if you're having trouble making your mortgage payments." Rule #1: Do not go to a real estate expert for mortgage advice. Would you speak to a plumber if your electricty was out? Well maybe, if you would then you need more help than I can give you.

Barbara has made such ridiculous claims as:

• "Take deed and keys to your front door and go to your mortgage company and hand them over. That will get their attention" -- Yeah, and they'll probably think you're a moron.


• "Sleeping well is worth at least half a point (.5%), maybe even more" -- So you're telling me that you'd accept a mortgage rate .5% higher just so you can sleep at night, know that it is locked, and it won't go higher? You really may be nuts. Here's an idea: Call someone in the mortgage company that knows what they're talking about and discuss a float-down or a re-lock. Great advice Barb!
  

• "If you should happen to have a lot of equity in your house and don't need your cash out, you can advertise seller financing at below-market rate. Offering a 4.75% mortgage for five years." -- No, you are not a mortgage expert. Do not encourage the average homeowner to think they understand writing mortgages. A fraction of the population may be able to do this. I'm talking Donald Trump and a few of his friends. The only way to make this idea work would be to pay a mortgage professional to help you structure the seller financing. It's worth it to pay a couple thousand dollars to save you 10's of thousands.

The moral of the story is to be careful where you get your advice. Watching this woman on the television is more tedious than watching Barney marathons with a bunch of screaming 4 year olds! Nonetheless, there is a lot of great advice out there. First-time buyer seminars are loaded with information, and there are dozens of free seminars offered to homeowners and individuals seeking financial assistance. As I mentioned last week, you need to know your situation and the help you need. As always, if you have any questions please feel free to contact me!

Make it a great day!