As a real estate litigation attorney who lived through the early part of the decade, Quicken Loans’ Rocket Mortgage idea “that securing a mortgage could be just like buying a pair of shoes online” baffles me.
From 2009 and to this day my firm assists homeowners affected by the housing crisis. Throughout the years I have witnessed the highs and lows of homeowners in foreclosure, from principal reductions to clients who had their homes sold at auction during the holiday season. This is why I am of the opinion that buying a house and maybe even more importantly, securing a mortgage should be a process where a mortgage professional should work with the home buyer hand in hand.
With housing prices in New York City being at all-time highs, it would be easy for a home buyer to get caught up in the hype and potentially take on more mortgage than they can handle. No one’s finances should be built like a house of cards because as Murphy’s Law states something will go wrong if it can go wrong. I have had foreclosure defense clients make payments on their mortgages for years until an emergency set them back financially and they were forced to default on their loan payments.
A good friend of mine is a mortgage broker who shares war stories with me about home buyers approaching him for loans on properties they have no business of looking at but because they plugged some information into an online mortgage calculator they are confident they can afford it. That is the danger of an automated mortgage system, while a good mortgage professional can explain why your income might not be sufficient for a certain loan amount, a computer system might put you in financial jeopardy.
We must learn from past experiences and in this attorney’s opinion securing a mortgage should not be like buying a pair of shoes it should be like securing a mortgage.