Buyers – Do you Think about This when You Post on Facebook?

In January 2012 I noted that you should Choose Your (Social) Friends Wisely – They Could Affect Your Ability to Buy a House.

In April 2012 I wrote words of warning to those involved in real estate transactions (real estate agents, too) to Don’t Talk about your Real Estate Negotiations (on Social Media)!.

2014 brings word that lenders are more avidly farming social media to ascertain buyers’ creditworthiness. This makes complete and total sense. I google many (most?) of the people I meet. If deciding to hire someone, checking out their social media profiles is a reasonable step of due diligence. Why wouldn’t lenders check potential borrowers’ social media? (other than the fact that big banks can’t be trusted)

From the Wall Street Journal:

Lending companies … are looking at potential problems such as whether applicants put the same job information on their loan application as they posted on LinkedIn, or if they shared on Facebook that they had been let go by an employer. A small business that draws negative reviews on eBay EBAY -0.95% also could undermine its chances of getting more credit, lending companies say.

“It’s one of the tools we use to do underwriting,” said Sasha Orloff, co-founder and chief executive at LendUp, which is backed by companies including Google Ventures and expects to make 300,000 loans in 2014. “Do you have 4,000 friends but none are that close, or do you have 30 people but they’re very close? There are ways to measure how engaged and how strong your community ties are,” he said.

I can imagine that life insurers would check to see if someone who says they’re not a high risk is prone to skydiving on weekends, or other such risky adventures. Reasonable, right?

In other words – Be careful what you post online.

I do wonder … could lenders one day ask for your gmail login credentials to see your networks? Or if buyers could use “do you check my social media profiles” as a means to evaluate lenders?

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  • jasonsee

    Ugh. So much I could say here, but I guess I won’t…. :)

    • http://www.realcentralva.com/ Jim Duncan

      Probably for the best.

      Perhaps the best comments are reserved for in person. Y’know .. at the pub. :)

  • Daniel Thompson

    We ALL know now, what happened to the Mortgage Market, and the whole Economy soon after don’t we. A Royal Mess is what it was!!! Well, after 5 Years now, we are Starting to come out of it now, and I have heard some Experts saying, that the Housing Market in America will return to those Value Levels we saw with Paulson was Treasury Secretary!!!!! What a Fake Mess He Created here in America too. And Goldmen Sachs, has Paid Over $1 Billion in Fines so Far too for this too!!! I remember 2006 too, I had a House I was Buying then, and it went from Purchase Price of $225,000 to, $476,000 too!!! That is Nuts, Right? Well, they are saying it will get back to those Levels again in 2017 here in America too. Let’s not let what happened to us, in 2008 happen again!!! Especially as we are Recovering from that now.

    So, make sure you do NOT Miss this Chance Either this time too. Lots of New Buyers out there now too, but the Credit Standards are back to the way they used to be back in the Older Days too, so make sure Credit Score is there too. Give Us a Call, and see what you Qualify for Today. Call, 877-222-2565 for Further Details too.

    Daniel Thompson

  • Daniel Thompson

    We ALL know now, what happened to the Mortgage Market, and the whole Economy soon after don’t we. A Royal Mess is what it was!!! Well, after 5 Years now, we are Starting to come out of it now, and I have heard some Experts saying, that the Housing Market in America will return to those Value Levels we saw with Paulson was Treasury Secretary!!!!! What a Fake Mess He Created here in America too. And Goldmen Sachs, has Paid Over $1 Billion in Fines so Far too for this too!!! I remember 2006 too, I had a House I was Buying then, and it went from Purchase Price of $225,000 to, $476,000 too!!! That is Nuts, Right? Well, they are saying it will get back to those Levels again in 2017 here in America too. Let’s not let what happened to us, in 2008 happen again!!! Especially as we are Recovering from that now.

    So, make sure you do NOT Miss this Chance Either this time too. Lots of New Buyers out there now too, but the Credit Standards are back to the way they used to be back in the Older Days too, so make sure Credit Score is there too. Give Us a Call, and see what you Qualify for Today. Call, 877-222-2565 for Further Details too.

    Daniel Thompson

  • Mark

    I dig this. When I sold my house a couple years back I regularly checked my buyer’s FB profile (and the spouse) to get their perspective on home inspection, showings. They were very excited. I don’t think I got an edge but I got good peace of mind as the negotiations and contingencies went along.