whe you are in front of the judge - three words ward off and delay Foreclosure: PRODUCE THE NOTE (the original note, when you closed on the house)
YOU DON'T HAVE A THING TO LOOSE..
I truly stand behind my finger pointing at Banking institutions. They are fierce predators.
Consumers don't know that it is not we (mortgage people) who pressured them into 2 year fixed - peculiar loan programs. We..are the link between Lenders/lending Banks and consumers.
(I will write a separate Blog, explaining how borrowing, lending, buying a home "works" and what you don't even know to ask. You will then know what Banks do, what Mortgage companies job is, where Realtors join in the chorus, and you can learn to manage your home buying and refinancing transactions without being taken to the cleaners, and still pay "us" a decent wage for our work.
*********TODAY - NO-ONE HAS THE MONEY TO PAY FOR GREED********
Lenders made (only those)SUBPRIME programs available for people with lower credit scores, BELOW (SUB) PRIME CREDIT (Prime=620 SCORE AND ABOVE). These folks could not get a 30 year mortgage.
I even venture to add that these people were set up to fail - knowingly. They had to have known, that two years are not enough for people to better their credit enough to get into a 30 year fixed. 100% financing? They knew - had to have..that a person with damaged credit can't pay down the mortgage in two years, so they qualify for a refi, fix their credit, and all in two years, the blink of an eye?? They set that up for a quick buck to be sold overseas. I guess they weren't thinking that "overseas" is right in front of our doors???
Greed is quite blinding.
Thursday, February 26, 2009
Tuesday, February 24, 2009
The next bubble...CREDIT CARDS..think about it.
A "HEADS UP"
Have you noticed that the due dates of your credit cards are (sliding around)changing - slowly?
If you haven't, you are paying days or (yes)weeks of interest which can be up to 43%.
NO - I'm not kidding!
The average consumer credit card debt is around $6000, and total debt (incl. mortgage) was $16,000.
Click here for official numbers
If you are making minimum payments on your cards and you are late because the bank slides the due dates around (SO THEY MAKE MORE MONEY OFF YOU), your debt will grow to staggering heights. Let's say you loose your job, your unemployment won't cover the payments and feeding your family and keeping a roof over your head, while the credit card bank is robbing you blind?
What if the same that happened to the (artifically inflated) Real Estate will happen to Credit card banks...will we the people have to bail out - again - the ones who drained us?
THINK ABOUT IT!
Have you noticed that the due dates of your credit cards are (sliding around)changing - slowly?
If you haven't, you are paying days or (yes)weeks of interest which can be up to 43%.
NO - I'm not kidding!
The average consumer credit card debt is around $6000, and total debt (incl. mortgage) was $16,000.
Click here for official numbers
If you are making minimum payments on your cards and you are late because the bank slides the due dates around (SO THEY MAKE MORE MONEY OFF YOU), your debt will grow to staggering heights. Let's say you loose your job, your unemployment won't cover the payments and feeding your family and keeping a roof over your head, while the credit card bank is robbing you blind?
What if the same that happened to the (artifically inflated) Real Estate will happen to Credit card banks...will we the people have to bail out - again - the ones who drained us?
THINK ABOUT IT!
Confessions of the Real Estate Industry
I've been thinking about this for a long while. Why are home owners in so much trouble?
Here are my answers:
Every "professional" who deals with home owners is commission based.
The Realtor - The mortgage broker/Loan officer for lender or bank - are commissioned.
The appraiser's first question when hired for an appraisal - where $$$$ does it need to be. (what's the sales price).
So - if you are selling a house - you and the Realtor come up with the highest price possible (remember- the Realtor gets a commission based on the sales price) The Mortgage Broker (or Loan Officer) hires the Appraiser, who will look for comps (comparable homes in the price range of the sales price). Sometimes they have to look a little harder, because he depends on the mortgage person and Realtor for his income.
This is how prices are driven.
Want to know how you can learn about the "how to" of making the largest purchase of your life? Who will you turn to? Who teaches first time home buyer classes? The Realtor or the Mortgage Loan officer. The same people who benefit from your transaction. Will they tell you what they don't want you to know? How they can rip you off? Will they tell you that the mortgage company they "recommend" belongs to the Real Estate Company they are working for. It DOES benefit them to steer you there, and they ARE encouraged by their Real Estate company to do so - keep it in house. Do they tell you that this is a conflict of interest? That between all of them, they drive up your costs and the value of your loan and your house. This is artificially driving up the cost of housing! It pays them more money - that's how it goes.
Is there a way to fix this, so that we are not building another "bubble" in the future?
Take these people off commissions and pay a set fee for their services. Itemize the services and add monetary values to each part of the service.
For example:
For a $2000 fee, the Realtor will list you house with MLS, put one ad into a paper, hold two open houses, and write a sale agreement.
If you, the seller, want more, then there are fixed costs for running ads, open houses etc which you, the seller has to agree to.
The same with Mortgage Brokers (independent or working for banks or Lenders) A fixed price (let's use the same amount of $2000)for transacting a purchase or a refinance.
Whether the house value is $100,000 or $500,000 - it should not make a difference - it's the same amount of work. Listing the house, advertising is and writing a contract and have a couple of open houses - how much is that per hour?
A sales contract is a sales contract, and a mortgage is a mortgage. The work is repetitive and you don't need to be an Einstein to do it.
Furthermore - the idea of interest rates, points, and yield spread.
Interest rate + points = the customer pays the broker
Interest rate + yield spread = the bank pays the broker...WHY would the bank pay the broker???? ANSWER - for selling a higher interest rate.
Brokers in some cases can make up to 4% of the loan amount in yield spread - and often also charge you 1 point(%) for a $250,000 loan - that's a total of $12,500, just for collecting papers and finding a lender to do the loan? Maybe a total of a days worth of work? Guess who pays that...YOU - In one way or another and sometimes both ways.
Flat fee service would stop all of this. I'm sure many Realtors and Mortgage Brokers/Loan Officers would find something else to do - but for all the right reasons.
IT IS TIME - RIGHT NOW - TO GET THE FOX AWAY FROM THE HEN HOUSE or Predators with friendly faces and smooth demeanor away from clients in vulnerable positions.
Help send this blog to someone who may be able to make a difference.
Here are my answers:
Every "professional" who deals with home owners is commission based.
The Realtor - The mortgage broker/Loan officer for lender or bank - are commissioned.
The appraiser's first question when hired for an appraisal - where $$$$ does it need to be. (what's the sales price).
So - if you are selling a house - you and the Realtor come up with the highest price possible (remember- the Realtor gets a commission based on the sales price) The Mortgage Broker (or Loan Officer) hires the Appraiser, who will look for comps (comparable homes in the price range of the sales price). Sometimes they have to look a little harder, because he depends on the mortgage person and Realtor for his income.
This is how prices are driven.
Want to know how you can learn about the "how to" of making the largest purchase of your life? Who will you turn to? Who teaches first time home buyer classes? The Realtor or the Mortgage Loan officer. The same people who benefit from your transaction. Will they tell you what they don't want you to know? How they can rip you off? Will they tell you that the mortgage company they "recommend" belongs to the Real Estate Company they are working for. It DOES benefit them to steer you there, and they ARE encouraged by their Real Estate company to do so - keep it in house. Do they tell you that this is a conflict of interest? That between all of them, they drive up your costs and the value of your loan and your house. This is artificially driving up the cost of housing! It pays them more money - that's how it goes.
Is there a way to fix this, so that we are not building another "bubble" in the future?
Take these people off commissions and pay a set fee for their services. Itemize the services and add monetary values to each part of the service.
For example:
For a $2000 fee, the Realtor will list you house with MLS, put one ad into a paper, hold two open houses, and write a sale agreement.
If you, the seller, want more, then there are fixed costs for running ads, open houses etc which you, the seller has to agree to.
The same with Mortgage Brokers (independent or working for banks or Lenders) A fixed price (let's use the same amount of $2000)for transacting a purchase or a refinance.
Whether the house value is $100,000 or $500,000 - it should not make a difference - it's the same amount of work. Listing the house, advertising is and writing a contract and have a couple of open houses - how much is that per hour?
A sales contract is a sales contract, and a mortgage is a mortgage. The work is repetitive and you don't need to be an Einstein to do it.
Furthermore - the idea of interest rates, points, and yield spread.
Interest rate + points = the customer pays the broker
Interest rate + yield spread = the bank pays the broker...WHY would the bank pay the broker???? ANSWER - for selling a higher interest rate.
Brokers in some cases can make up to 4% of the loan amount in yield spread - and often also charge you 1 point(%) for a $250,000 loan - that's a total of $12,500, just for collecting papers and finding a lender to do the loan? Maybe a total of a days worth of work? Guess who pays that...YOU - In one way or another and sometimes both ways.
Flat fee service would stop all of this. I'm sure many Realtors and Mortgage Brokers/Loan Officers would find something else to do - but for all the right reasons.
IT IS TIME - RIGHT NOW - TO GET THE FOX AWAY FROM THE HEN HOUSE or Predators with friendly faces and smooth demeanor away from clients in vulnerable positions.
Help send this blog to someone who may be able to make a difference.
Subscribe to:
Posts (Atom)
Posts
