I want to make sure that I am answering your question.
1) Usually a mortgage broker is involved in a house purchasing situation and not in a house selling situation.
"Regardless, a mortgage broker is essentially a middleman between the borrower/homeowner and the bank or mortgage lender. They work directly with both the consumer and the bank to help borrowers qualify for a mortgage, whether it be a purchase mortgage or a refinance.
When "selling" a house, any person wants to earn as much as possible."
They "can" but they should not make an arrangement to loan money out to the buyer for double the value of the house. A mortgage uses the house as the underlying leverage. A mortgage broker needs to attract customers, but also not to take on unnecessary risk for the lender.
2) As to during the sale of a house, I can only see a bank making money. I cannot see how the mortgage broker double the money on the sale of the house. If the house is owned by the mortgage broker, there is nothing apparently wrong for the person to make as much money as possible.
3) Are you referring to that sometimes the foreclosed house is sold at a price much higher than the loan on the house? Usually, the loan holder, the mortgage company in this case wants to open the sale at the full value of the cost to them. Sometimes, this cost include the real estate taxes, legal fees, interests, unpaid period costs, etc. accumulated during the foreclosure process. This part of the cost sometimes can be the half or more of the original house value or the remaining loan balance.
Please feel free to follow up.
Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP