Just about everyones heard of the old bait & switch. Ill bet you could probably give an example or two of how its been tried on you before too, couldnt you? Even those who think they dont know what it is will recognize it when its explained. Let me give you an example and tell you how some not so honest lenders use it in the mortgage business.

The bait and switch basics:

An unscrupulous business owner runs an ad offering his particular product or service at an incredibly low, bargain price. He has no real intention of selling his product or service at the price advertised however. His advertised price is merely the bait to entice customers to contact him, to tempt you into picking up the phone or walking in his door.

Once youve made contact and the scammer has your undivided attention, the switch and sales pitch begins. Hell tell you why the product or service they advertised is either no longer available or attainable, and why his other, improved, advanced and more expensive product or service is a much better deal for you.

And that of course was his plan from the beginning bait you in with a bogus price or product, and then switch you to higher priced service or product hence the name bait & switch.

The carpet cleaners bait & switch:

Mr. Carpet Scammer advertises a special coupon that offers 3 rooms cleaned for only $9.95. Thats the bait. You call in and an appointment is scheduled. Once hes there, the switch begins, if you want to pre-condition the carpet, extra $ spot-cleaning, extra $ moving furniture, extra $ stain guard, extra $, and so it goes ...

By the time hes done, the bill could be $150+. And the worst part is, even if he didnt say how much extra the extras would be, you agreed to pay for it when you signed his contract before he started the job!

Now dont get me wrong my intention here is not to pick on carpet cleaners. Quite to the contrary, I want you to understand that the old bait & switch is used even in businesses where you wouldnt expect it.

Understand that every profession has its good and its bad, and the mortgage business is no different.

The mortgage bait & switch:

Heres the way the old bait & switch works in the mortgage business: Mr. Mortgage Scammer checks the daily rate sheet looking for the lowest possible rate available on ANY kind of loan program. It doesnt matter that its a rate for a loan program that only 1 out of 1,000 homebuyers would actually qualify for or WANT, for that mater. What matters is that he can advertise that rate because that rate IS available to somebody.

Next, they advertise (X) PER CENT, THATS RIGHT! (X) PERCENT! AVAILABLE RIGHT NOW! BUT YOU BETTER CALL NOW! (X) PER CENT MAY NOT BE AVAILABLE VERY LONG, SO CALL US RIGHT NOW AT 555-555-5555 BEFORE ITS TOO LATE! AGAIN, THATS (X) PERCENT! CALL US RIGHT NOW AT 555-555-5555!

The So Called RATE is the BAIT.

He knows that 99% of the people that call on that ad wont qualify for the rate hes advertised. But that doesnt matter to the people that run these types of ads. All that matters to him is that you pick up the phone and call HIM and HE gets the opportunity to talk to you before anyone else does.

Once they has you in a conversation, theyll sympathize with you over the fact that you dont qualify for that rate and then (as was their plan from the beginning) the switch. But I think I can probably get you qualified for (X %) if we get started right now! And so it goes.

Beware the bait and switch my friend. And remember, if it sounds too good to be true, then it probably is.