A serious question about mortgage brokers in NY.

[dancing kali]

If anyone around here knows anything about buying houses in NY/NJ I (actually my baby brother) need your help.

I just got e-mail from my brother who lives in Brooklyn and has been trying to move out of the city so his daughter can have some space to grow up in - the tiny apartment for two adults, one almost teenager, a deaf dalmatian and two cats just isn't making it anymore. They scraped and saved, got a no-interest loan (I don't know how these work and this seems to be where the problem is), found a nice place in NJ. They made an offer, closing costs are to be taken care of by the seller, offer is accepted. Everything is cool until this morning when my brother got a call from the mortgage broker saying that he needs to come up with six months worth of payments in advance or they lose the house. No mention of needing to have the six months worth of payments in advance has been made until this morning.

My question is - is this how it works in the US? I didn't work that way for my husband and I when we bought our house here in Vancouver. I don't know what to say to my brother, who is heartbroken and now looking at losing the house, possibly the tiny rent-controlled apartment that he and his family have been in for over 20 years ( I don't know if they've put in their notice yet), and the stress will probably kill any possibility of a happy family life. If anyone knows what my brother should do next - legally please - could you please respond. I'm several thousand miles away from my baby brother and I can't fix it from here.

Thanks in advance.
Dancing Kali

[madrchsod]

1. tell him to find a lawyer tomrrow morning!

i think he`s been conned big time...

[dancing kali]

4. I had that thought.

It's the reason I'm asking here. I did make that suggestion to him, but he's still in the knee-jerk reaction stage. I'll suggest it again when he's a little less emotional.

Thanks for responding.

[speedoo]

2. Most people in the NY area connected with Real Estate are dishonest.

That has been my experience. But in Connecticut on the other hand, I have had nothing but good experinces.

My advice to your brother would be to engage a good real estate attorney. Both to perhaps help him deal with his immediate problem and to keep him out of trouble with any future transactions. I know one in Manhattan and i would be happy to give you his name and contact # if you wish. Send me a PM and I will respond.

[dancing kali]

5. Thanks.

I've sent you the PM. I appreciate the offer.

[RollergirlVT]

3. for good information...

I suggest you have your brother visit bankrate.com. They have all kinds of information about mortages, the good and the bad, what to watch out for and how to deal with bad seeds.

[dancing kali]

6. Thanks for the pointer.

That should be useful.