People were being advised, by people who operate (by nature of their profession) as authorities in financial matters to enter agreements against their own best interest.
Why is it that everyone thinks the man trying to sell them a $500 TV is a scummy ripoff artist, and the man trying to sell them a $5000 used car is a scummy ripoff artist, but the person trying to sell them a $500,000 mortgage is a financial professional and their bestest buddy?
Jeezo pete, folks! The man on the other side of the desk is not your friend. His job is to get money from you. Your job is to read the fine print and squeeze nickels 'til the buffalo craps, not to roll over and sign whatever's put in front of you.
Stockholm Syndrome - with that amount of money involved and the tie-down the mortgage represents, you twist your mind around to the captor's side as a partner in crime.
ReplyDeleteMy wife and I were looking to buy some land. We went into to the local real estate office and within 5 minutes the agent had lied to me. We left.
ReplyDelete"I can't put my finger on why I don't want to deal with that man," my wife said.
"I can," I said. "I wouldn't trust him with a $20 to pick up my pizza; why would I entrust him with thousands of dollars of my money? That's my money. I like my money. . . "
You want people to be RESPONSIBLE for what happens in their lives?
ReplyDeleteYou are asking an awful lot!
Back when my friends and co-workers were buying $150,000 houses for $300,000 I told them they were being ripped off. They told me all houses were going for that much. I told them that I wouldn't buy any houses till the price came down because the housing market was overpriced.
ReplyDeleteDuring that time, I went through a divorce and the judge correctly valued my house at $120,000 dispite the fact that 10 other houses in the neighborhood with less square footage were selling for about $90,000 more.
I didn't like the judges decision, but I agreed with it because it was fair IMO because I would not have paid the "market" value for my house since I knew I could build the same one myself for what the Judge valued the house at.
My ex (who was a stay at home mom and never made one single house payment) got the house and I got $60,000.
db
C'mon, Now it's just part of the American dream. We envision ourselves in nicer houses. All of the sudden the guy selling you that half-mill loan doesn't look so scummy.
ReplyDeleteMatt G,
ReplyDeleteWhat was the lie? It's good to know about these things...
One of the duties of my job is to buy investments for my company. I prefer to buy them directly, but sometimes a broker is required.
ReplyDeleteThe best piece of advice I ever received about brokers was to always visualize them leaving the country with a suitcase full of my money.
Millions of Americans are learning exactly what an agency conflict is right now.
People do the same with doctors, and lawyers.
ReplyDeleteThey trust them to "take care of things" because thinking for yourself is just so hard. And you might actually have to READ something.