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Too-good-to-be-true offers leave borrowers in a bind
The Washington Times ^
| 2-9-06
| Patrice Hill
Posted on 02/09/2006 11:51:09 AM PST by JZelle
The promise of easy money comes in an official-looking envelope marked, "Important Financial Information Enclosed." Need $2.5 million at 1 percent to 2 percent to buy or refinance a home? No problem. Borrowers put no money down and pay just interest. A good credit rating is not a requirement. Bankruptcy judgments, debt charge-offs or tax liens don't matter, and "all difficult credit scenarios are okay," the lender says. The home-financing offers come from an army of mortgage brokers estimated at 250,000 nationwide, many operating outside the reach of banking regulators. They have become the principal source of home financing in the United States.
(Excerpt) Read more at washingtontimes.com ...
TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: arm; interestonlloan; loanshark
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This is gonna be ugly.
1
posted on
02/09/2006 11:51:11 AM PST
by
JZelle
To: JZelle
To: JZelle
Financing for the stupid.......I'll keep a little cash on hand so I can buy their homes for pennies on the dollar when the FDIC steps in and closes these loan sharks down.....
3
posted on
02/09/2006 11:54:42 AM PST
by
Decepticon
(The sheep pretend the wolf will never come, but the sheepdog lives for that day (NRA)
To: JZelle
"Stupid is as stupid does."
To: JZelle
Bet all the takers of these offers are public school graduates.
To: JZelle
Gunna? It's effects are here already. No one under 25 can afford a house where you don't have to hit the deck when a car backfires.
6
posted on
02/09/2006 11:56:38 AM PST
by
SengirV
To: JZelle
Making a down payment on an interest only loan is stoopid. No down payment on an interest only loan is stoopider.
7
posted on
02/09/2006 11:57:31 AM PST
by
ladtx
("It is fatal to enter any war without the will to win it." -- -- General Douglas MacArthur)
To: JZelle
No problem. My Nigerian friend is holding some money for me, all I need to do is pay some fees up front.....
8
posted on
02/09/2006 12:01:28 PM PST
by
dynachrome
("Where am I? Where am I going? Why am I in a handbasket?")
To: JZelle
My sister-in-law refinanced for a monthly rate based on 1.25% Annual rate with an APR of 6.75%.
When I tried to explain to her that if she followed that payment blueprint, her principle balance will increase monthly, She dismissed me as someone who doesn't understand how mortgages work.
I can't even send her the link to this article because her reaction will be less than appreciative.
9
posted on
02/09/2006 12:02:12 PM PST
by
HEY4QDEMS
(Learn from the past, don't live in it.)
To: JZelle
what gets me is the people who turn UNSECURED dischargable debt into a secured part of their home load. They can't pay the credit cards, they are not going to be able to pay a second mortgage.
It is unconcionable because there is no real education given to these people.
To: Decepticon
You and me both. I'm praying the bubble holds off bursting until about 2008, when I plan to be well positioned to buy up my town on the cheap...
11
posted on
02/09/2006 12:04:21 PM PST
by
Shalom Israel
(Pray for the peace of Jerusalem.)
To: razorback-bert
Bet all the takers of these offers are public school graduates
even worse....from the article.....
The brokers who offer such mortgages often have no licenses or formal training and may have just recently graduated from high school or college. They are essentially salespeople for whom there is no downside to the risky debt propositions they peddle.
12
posted on
02/09/2006 12:04:58 PM PST
by
Decepticon
(The sheep pretend the wolf will never come, but the sheepdog lives for that day (NRA)
To: JZelle
This explains to me a phenonmenon I see every day: people driving expensive cars and eating at an expensive restaurant who seem to have no productive ability. Oh sure, I suppose a few have a sugar daddy, or work for the media, but this helps me to understand how the rest do it.
To: Shalom Israel
You and me both. I'm praying the bubble holds off bursting until about 2008, when I plan to be well positioned to buy up my town on the cheap...I like it......then you can be charitable and rent back to those that lost their home.....with an option to buy at realistic rates.....
14
posted on
02/09/2006 12:10:17 PM PST
by
Decepticon
(The sheep pretend the wolf will never come, but the sheepdog lives for that day (NRA)
To: HEY4QDEMS
The only way for people that obstinate to learn about how money works is through trial, error and a lot of pain.
15
posted on
02/09/2006 12:11:03 PM PST
by
Centurion2000
(If the USA was the Roman Empire, Islam would have ceased to be a problem on 9/12/2001)
To: Decepticon
Financing for the stupid
Loans like these used to be quite commonplace among real estate developers and home builders except that those loans were due within one to three years.
These loans make good sense to a builder or developer, but for a twenty or thirty year mortgage I have to agree, STUPID.
16
posted on
02/09/2006 12:12:13 PM PST
by
HEY4QDEMS
(Learn from the past, don't live in it.)
To: HEY4QDEMS
Those loans are intended only for either short-term financing or people who know enough about finance to properly take advantage of them. Even in those cases they often aren't the best option.
17
posted on
02/09/2006 12:12:54 PM PST
by
RockinRight
(Attention RNC...we're the party of Reagan, not FDR...)
To: D.P.Roberts
This explains to me a phenonmenon I see every day: people driving expensive cars and eating at an expensive restaurant who seem to have no productive ability I always thought....."How the heck do these people afford all this?".........after meeting a few of them it's quite obvious......they're so far in debt that one missed payment puts them in court......I'm not kidding.
18
posted on
02/09/2006 12:13:24 PM PST
by
Decepticon
(The sheep pretend the wolf will never come, but the sheepdog lives for that day (NRA)
To: JZelle
The bills will come due. They always do.
And the government will be asked to bail out the losers.
19
posted on
02/09/2006 12:13:41 PM PST
by
Glenn
(What I've dared, I've willed; and what I've willed, I'll do!)
To: dynachrome; BlackElk
No problem. My Nigerian friend is holding some money for me, all I need to do is pay some fees up front.....
Ha! I should refer you to MY Nigerian friend. I don't have to pay any upfront fees! I just give him all of my bank account info and he will put the money directly into it! What could be easier?
20
posted on
02/09/2006 12:13:51 PM PST
by
sittnick
(There is no salvation in politics.)
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