Home Builders have they learned there lesson?

I was talking with a prospect the other day and he was trying to buy a home from a very large national builder. He put a substantial down payment down on a spec home. He did not like the builders financing options and wanted go to a lender that the builder did not own. His contract with the builder stated he could use any lender he chooses. However, he was told by the builder that they would not sell the house to him if he did not use their lender.

Why would a builder do this? They must be making a great profit on the financing and you know they are because their rates and terms are not competitive. Why does the contract state you can finance anywhere when they force you to finance with them? My guess is that the builder knows that they are in violation of RESPA but feels they can keep out of trouble if the contract says you can finance with anyone.

This is the type of behavior that got us in this credit crunch predicament in the first place. We need to stand up and put a stop to companies running over our rights as consumers. My advice since the government won’t put a stop to it, we as consumers must put a stop to it.

Stop buying homes with builders that want to control the financing, it is not in your or the countries best interest. Of course, it’s in the builder’s best interest or they wouldn’t be so deceptive and forceful.

I went through that because it shows that with all the talk some of the causes of the mortgage crisis are still alive and well. We need to put companies that disregard the laws of our country, put themselves ahead of their customers, and put our economy in danger out of business. Some will say I am over reacting but that is what I was told when I warned about the abuse of mortgage programs just a couple of years ago.

If you are buying a home from a builder protect yourself and the rest of us. Tell them you will not finance with their mortgage company. If they insist then do not buy from them. If they don’t care about us then we should not care about them.