When will they ever learn
Apr. 24th, 2009 05:05 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
pecuniumI'm seeing ads which make me think there are companies out there planning to cash in on the present turmoil in the housing market, by stirring the present pot.
LendAmerica, which has been running annoying ads; designed to look like news spots (on the Bloomberg model of too busy, with split windows and tickers on the bottom). They were about getting second mortgages, using Chris Dodd (D- Connecticut) to give it gravitas.
Now they look like investment spots. Don't own a home... this is the time to get one. "Nothing beats the pride and security of owning your own home" (really, tell that to the one in 14, or so, who are in foreclosure). They say lots of wall Street Firms are holding onto empty homes, and you can get a deal ("closing costs paid by the seller").
On one level they are right. If I had the money, I'd be looking at it (I know someone who scored a great deal on a house in Indiana.... About $9,000 and it was theirs. Paid in full. Needs some work, but it's not in bad repair. Just someone who had speculated, and didn't get out in time). But the ad goes on, touting "An FHA program which only requires 3.5 percent down, and includes money to remodel.
DING DING DING.... I am afraid the only thing which is going to save people from getting in over their heads is that the secondary lenders (Because I somehow don't think LendAmerica is really in the lending business, but rather in the "Make a loan, sell the paper" business), are being less liberal in their disbursing of money.
Doing a bit of research... It looks if I understand it, as if they are doing a few things. 1: When you go to their website, they have banners asking, "Are you afraid of the sub-prime market?"
2: They are a direct lender, which means they can hide some of their revenues.
3: They are actively acquiring Ginnie Mae mortgages, so they can offer mortgage backed securities.
4: There are a few complaints against them. I'd expect some (mortgages are complicated things, and lots of people don't get what they think they are getting).
5: The owners have had run ins with the law, related to mortgage fraud.
All in all, my less than warm fuzzy from the ads, is not changed much from the research.
LendAmerica, which has been running annoying ads; designed to look like news spots (on the Bloomberg model of too busy, with split windows and tickers on the bottom). They were about getting second mortgages, using Chris Dodd (D- Connecticut) to give it gravitas.
Now they look like investment spots. Don't own a home... this is the time to get one. "Nothing beats the pride and security of owning your own home" (really, tell that to the one in 14, or so, who are in foreclosure). They say lots of wall Street Firms are holding onto empty homes, and you can get a deal ("closing costs paid by the seller").
On one level they are right. If I had the money, I'd be looking at it (I know someone who scored a great deal on a house in Indiana.... About $9,000 and it was theirs. Paid in full. Needs some work, but it's not in bad repair. Just someone who had speculated, and didn't get out in time). But the ad goes on, touting "An FHA program which only requires 3.5 percent down, and includes money to remodel.
DING DING DING.... I am afraid the only thing which is going to save people from getting in over their heads is that the secondary lenders (Because I somehow don't think LendAmerica is really in the lending business, but rather in the "Make a loan, sell the paper" business), are being less liberal in their disbursing of money.
Doing a bit of research... It looks if I understand it, as if they are doing a few things. 1: When you go to their website, they have banners asking, "Are you afraid of the sub-prime market?"
2: They are a direct lender, which means they can hide some of their revenues.
3: They are actively acquiring Ginnie Mae mortgages, so they can offer mortgage backed securities.
4: There are a few complaints against them. I'd expect some (mortgages are complicated things, and lots of people don't get what they think they are getting).
5: The owners have had run ins with the law, related to mortgage fraud.
All in all, my less than warm fuzzy from the ads, is not changed much from the research.
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no subject
Date: 2009-04-25 04:02 am (UTC)I have friends who had a pre-payment penalty. If they re-fied the house, and that paid off the present mortgage, the owed the bank an extra 20,000 dollars.
In addition, until the magic pre-payment exclusion period was paid, overpayments on th monthly bill would not be accepted. They would be counted against the next month's payment, but no reduction in principle could take place until the first five years had passed.
no subject
Date: 2009-04-25 04:07 am (UTC)