This story from the Washington City paper probably rings true for far, far too many people.

Even more than subprime, it highlights the perils of working with a lender who is owned by the builder, and often times there is no Realtor involved, nor attorney representation for the buyer, as part of the “package” is that the buyer uses the builder’s/seller’s/lender’s title company for Closing. (and this example probably had little to do with race)

As it was, they didn’t even try to comprehend them. And they didn’t have the papers reviewed by a lawyer or real estate expert, a common but tragic mistake made by many home buyers, advocates say.

Such a review would have turned up a number of red flags. The Washington City Paper asked two experts to review the Rioses’ home purchase: …

“This is a predatory lending case. This is probably one of the most classic cases that I’ve seen,” says Sherman.

If you either don’t have an agent or have a “dual agent” you likely don’t have full representation, or worse – the perception that you do.

Too few recognized these dangers while in the midst of the storm. Hindsight brings such clarity.

As noted back in 2005
Hat tip: Julie

Technorati Tags: mortgages