Home Buying For Dummies (For Dummies (Business & Personal Finance)) Collusion between mortgage brokers and real estate agents is illegal. However many homeowners have been put at risk of foreclosure because this unethical practice is carried out in subtlety. A couple get pre approved financing and see a real estate agent that shows them homes beyond the price range that they can afford.

Even though everyone seems happy in the beginning, the only winners are the dealmakers who pocket the higher commissions from the sale of the house and the mortgage. In the long term it is homebuyers that pay the price when clauses in their mortgage contract kick in to increase the payments beyond what they can afford. They then either have to sell their home or are foreclosed upon.

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