November 18, 2005

Shouldn't this be illegal? The world’s worst mortgage


OK, consumers should have some responsibility in this mess.. nobody says you HAVE to buy a house. But come on folks, take a look at this potential mortgage disaster:

Here's a deal for you: Put no money down, pay only interest, or skip payments entirely. Mix too many of these features and you dig a hole you can't ever hope to escape.

I have tried to devise the absolute worst mortgage loan that I can imagine. Fortunately, this loan is nothing more than a figment of my imagination -- at least, as far as I know.

I made it hard on myself. Although I dreamed it up, the world's worst mortgage couldn't include anything that doesn't exist in the market today. So that disqualifies imaginary elements, such as mortgages written on acid-spraying exploding clay tablets. I just took the worst elements of all the existing mortgages and assembled them. Here's what I came up with:

11 comments:

Everyone Calm Down said...

Is it the fault of the mortgage company, or is it the fault of the person getting the mortgage......I think the latter. People need to be responsible for their own actions and not blame everyone else when things go bad.

41cadillac said...

Yes people need to be responsible for their own actions. 100%! That also includes Mortgage Companies.

"Any man's death diminishes me, because I am involved in Mankind; And therefore never send to know for whom the bell tolls; It tolls for thee". John Donne

keith said...

both will get screwed... just saw one mortgage lender lay off 1000 people earlier today

but you are correct - the home buyer is 100% responsible in the end for his or her own actions. But it's the collusion of corrupt realtors, lenders, builders and government that screwed the little guy - who in the end is ignorant of bubbles, finance and the real estate industrial complex collusion

41cadillac said...

Found the following on
Beazer Homes USA Inc. (BZH) message board:

"Just wait till November housing
by: traderbill3 11/18/05 10:24 pm
Msg: 17253 of 17254

starts are released next month. The slow down is just starting. Every month will be worse. Sellers are already starting to panic. Sellers of existing homes will be competing with the builders for buyers. Once the public relizes that house prices are headed down, they'll really put the brakes on. Psychology is changing and psycology drives markets. "

skytrekker said...

These type of money lending practices invite those not economically stable to take huge risks without understanding the consequences. However loose lending practices such as these by the lending company also invite problems- its a double edged sword, that will lead to problems to both the mortage company and the consumer.

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