HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005

December 13, 2006

$150,000 loan for $450 a month. Oh dear god when will this stupidity end?

Thanks buzz

28 comments:

Anonymous said...: Not until the government regulates this industry; December 13, 2006 5:02 PM
Anonymous said...: be careful for calling for regulation,, there is responsible and irresponsible use for different financing options, and dont want to filter out legitimate use

for example,, I know someone who bought a multimillion dollar condo in the us in (gaasp) florida using an option arm reduced doc..

WOW sounds crazy on its face doesnt it...not until you know that this person was an ex ceo selling their 5 million dollar house in the meantime (no mortgage) and just wanted a quick and easy transition without touching tied up investment accts etc.. when the hosue sold, they just paid off the whole option arm cash, end of story (and they have otherproperty and assets of course)

so you cant always judgd a book by its cover,, granted this is extreme example,, but there are others who use all sorts of products and are responsible too

juast food for thought; December 13, 2006 5:09 PM
Anonymous said...: These are typical bait and switch rates. They will probably give you some teaser rate for a few months and then jack up the rates via the fine print. They are obviuosly targeting some pretty stupid people. Anyone with a decent head on their shoulders should be able to figure out this scam.They will f@ck you over before you even know it. Bunch of scum, lowlifes who drive nice cars and would sell their mother to the highest bidder.; December 13, 2006 5:14 PM
blogger said...: regulation would impose some minimum requirements. today these hucksters pimp these loans to anyone and everyone in order to make a big commission. this ad targets the lowest common denominator - the dumbest of the dumb

I agree, people with substantial savings and assets should have access to this product. But not someone making $30,000 a year, big debt and no savings wanting to buy a $800,000 house; December 13, 2006 5:14 PM
Anonymous said...: They are using these loans to pump money into "the economy". Translation, once the big builders get the money who cares if the borrower defaults? Classic rip-off.; December 13, 2006 5:21 PM
Anonymous said...: Keith,,

we basically agree- the tricks is how do you do it without filtering out more then the uninformed with no means of paying the loan?

We both agree that its not neccesarily a product, but misuse of it or lack of education combined with sometimes relying on a less then objective loan officer (many are very honest and others arent of course, like any business)--; December 13, 2006 5:27 PM
Anonymous said...: I wholeheartily support these scum, it is the only way to teach ignorant buffoons a good lesson. If you are stupid enough to buy a house today with a toxic mortgage, you deserve the pain and suffering you will be experiencing shortly. A tiny amount of research into buying a house is all that's needed to avoid disaster.; December 13, 2006 5:30 PM
Anonymous said...: Buzz kill had this link:

"Today, the homes are worth less than the owners owe, making it hard to refinance out of nontraditional loans before payments go up."

OC Register; December 13, 2006 5:30 PM
Anonymous said...: Once the builder CEOs and the lender CEOs finish bilking the system for hundreds of millions each, the system will fail, pensions will be wiped out, and the gubbermint will have a massive hedge fund bailout. Welcome to Amurka!; December 13, 2006 5:38 PM
Anonymous said...: read'em and weep:

http://www.prisonplanet.com/articles/december2006/131206amero.htm; December 13, 2006 5:40 PM
Smart Grid blogger said...: Government isn`t blind, they`re just TURTLE SLOW to implement rules !!!; December 13, 2006 5:42 PM
Anonymous said...: Government isn`t blind, they`re just TURTLE SLOW to implement rules !!!

Bullcrap! The gubbermint is owned by the scamster hamsters!; December 13, 2006 5:51 PM
David said...: anon 5:19

Your case is ATYPICAL!; December 13, 2006 6:10 PM
Anonymous said...: david

yes it is , and said that in the post,, the point i was making is that we dont want to overregulate to the point you take away choices for more responsible borrowers,, including the atypical borrower above, and less atypical borrowers who would benefit from alternative products for various reason (and there are many responsible borrowers with good reserves whos best choice may not be bread and butter financing too)

so were not disagreeing ,, im just saying we cant live are lives regualting responsble people to protect irresponsible ones,, wed have to shut down the stock market etc if we did this,, there are always people who do foolish things, shouldnt effect responsible others...; December 13, 2006 6:15 PM
Anonymous said...: Here's another one. Ugh!; December 13, 2006 6:17 PM
Anonymous said...: Egad! This one's even worse!; December 13, 2006 6:20 PM
Anonymous said...: buzz,

you do realize that's a joke video right?; December 13, 2006 6:32 PM
Bill said...: Not until the government regulates this industry:

--------

I almost threw-upwhen i seen this comment...they cant regulate themselves what make you think the can regulate the Mortgage system; December 13, 2006 6:32 PM
ocrenter said...: and here's the result from these loans: link; December 13, 2006 6:39 PM
Bill said...: Ladies & Gent"s

The Amero

http://tinyurl.com/ybjgfq; December 13, 2006 6:41 PM
Anonymous said...: "when will...this end."

not until all the dumb and stupid americans can no longer borrow or perhaps become smart one day and just say NO. enough is enough!; December 13, 2006 6:48 PM
jmf said...: funny how the scroll down all the tiny fineprint in a nanosecound.....

good one keith!; December 13, 2006 6:50 PM
jmf said...: just wanted to add that with this kind of offers it is no surprise that "U.S. mortgage delinquencies jump in third quarter "; December 13, 2006 6:52 PM
Anonymous said...: Keith,
It gets even better idiots in Orange County still believe their houses are going up.
HAHAHAHAHAHAHAHAHAHAHAHA; December 13, 2006 7:23 PM
Anonymous said...: Whats great is if your a scammer you can use this kind of loan to live free for a few more months.

Then skip town

Slab City is gonna be crowded soon.; December 13, 2006 7:25 PM
Anonymous said...: The Florida flippers in the mid 1920's were called "binder boys" who were mostly young jews turning over the same lots 2 or 3 times the same day.They would sell to anybody, even to older jews, it didn't matter. I guess times don't change.; December 13, 2006 7:49 PM
Anonymous said...: Everyone in the ad is happy so it must be a good deal. These ad are so f'n pathetic.

I once read the fine print in an ad similar to that one and it said the interest rate was guaranteed not to change for 30 days. Then the rate may change every month based on what their standards are to charge interest rates. Imagine having a payment potentially change every month? I guess these loans go after the unwise or just plain stupid...or just plain desperate. I think after seeing ads like these, I am changing careers and becomming a consumer advocate. They may as wll run an ad like this: Loan amount $1,000,000 monthly payment $150*. Anyone out there interseted? I'm smiling while washing my BMW with my right arm and washing my boat with my left arm.; December 13, 2006 8:56 PM
Anonymous said...: I recently heard an ad on an L.A. radio station pushing $300K mortgages with payments of just $66/month.; December 14, 2006 2:46 AM

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December 13, 2006

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