The "Bait and Switch" is alive and well in the mortgage business

Almost everyone has heard the old "bait and switch". I bet you could give an example or two on how you felt about yourself before too, you could not? Even people who think they know what the "bait and switch" when it recognizes it is explained. Let me give you an example and tell you how some "not so honest" lenders use it in the mortgage business.

The "Bait and Switch" Basics:

An unscrupulous businessman, runs an ad offering his particular product or service at an incredibly low price deal. He has no real intention of selling anything at that price. Its advertised price is just the "bait" to entice customers to contact him, groped for them in picking up the phone or walk in the door.

After making contact and he has your attention, '"Switch" begins. He'll tell you why the product is advertised or is no longer available or accessible, and because its other, "improved, advanced," and more expensive product or service is a much better deal for you.

And this, of course, was his plan from the beginning ... "Bait" you with a price of fake or of a product, and then "pass" the highest priced product ... hence the "bait and switch" name.

The bait and switch carpet cleaning:

Mr. Carpet Scam advertises a special coupon offers "3 rooms cleaned for only $ 9.95". This is the "bait". It's called and an appointment is scheduled. Once he is there, the '"Switch" begins, ... if you want to pre-condition of the carpet, extra $ ... spot-cleaning, extra $ ... moving furniture, extra $ ... stain guard, extra $, and so on ...

By the time he did, the bill could be $ 150 +. And the worst thing is that even if he did not say how much more "extras" would be, you agreed to pay when you sign the contract before starting work!

Now, do not get me wrong ... My intention here is not to pick up the shampooer. On the contrary, I understand that the old bait and switch is also used in businesses where they do not expect.

Every profession has its good and bad, and the mortgage business is no different.

The bait and switch mortgage:

Here's how the old bait and switch works in the mortgage industry: Mortgage Scam Mr. verifying daily sheet to find the lowest rate possible "rate" available on any type of loan program. No matter whether you charge for a loan program that only 1 in 1000 would actually benefit homebuyers ... or want, for that mater. What matters is that he can advertise that rate because that rate is available ... to someone.

Next, the advertisement ... "(X) per cent, it is true! (X) percent! Available now! But it is better to CALL NOW! (X) PER CENT MAY NOT BE AVAILABLE very long, so CALL U.S. AT 555-555-5555 NOW Before it's TOO LATE! "Again, this is (X) percent! CALL U.S. NOW AT 555-555-5555! "

The "rate" is the "bait".

He knows that 99% of people who call you that announcement will not qualify for the advertised rate is him. But that does not matter the kind of people that run these types of ads. All that matters to them is that you pick up the phone and call them.

Once you have a conversation, I agree with you that do not qualify for the advertised rate ... and then comes the "switch". "But I think I can probably get you qualified for (X%) if you start right now!" And so on.

Beware the bait and switch my friend. And remember, if it sounds too good to be true, it probably is .......