January 31, 2008

Only in America: From "condoflip.com" to "youwalkaway.com" in a matter of months. Ah, then end of a Ponzi Scheme.


People make money on the way up, and then on the way down. That's what realtors are trying to do, and now you have companies like these

My guess is most of these businesses are going to be scams and bloodsuckers. But it is amazing how quickly we went from condoflip.com to youwalkaway.com

Thanks HP'ers for the link...

19 comments:

Frank@Scottsdale-Sucks.com said...

LOL! What a scam! "We will get your foreclosure deleted from your credit." Fat chance! It's a public record! It's not going anywhere for 7+ years!!

born to lose said...

So what's the downside?

Move into a new house with no money down, interest only, teaser rate, payments less than what it would cost to rent.

A couple of years later, refinance and take out more than you earn in a year in cash. Buy cars, jewelry, coccaine, whatever and enjoy your life.

After the market crashes and you are upside down, just stop paying all of your bills, live rent free for eight months, and JUST WALK AWAY!

The best part is, its a renter's market now and your poor credit won't keep you from renting for a fraction of what the landlord is paying to keep her house.

Princess Mononoke said...

Yeah, I watched this today on ABC Nightline News. They also showed Realtwhores using buses to give foreclosure tours. It's called the Repo Xpress or something like that. They'll do anything to make a buck! People are actually crowding to get qualified to join this tour. Insane! Hasn't anybody learned anything from this fiasco?

They actually think they are getting bargains...

Bring back the Guillotine! said...

Probably a LLC with Bush, Cheney, Greenspan and Mozilo as owners.

They all need more money, ya' know.

MarkIFC said...

3 years out of foreclosure and you can qualify for a FHA mortgage (As long as it wasn't a FHA mortgage you defaulted on).

I'm working with a couple right now. He has never had a late pay or any bad credit. The fiance is 2 years out of a bankruptcy, with two secured Visa accounts, and her credit scores are higher than his.

Mortgage Guy

tangelo mozilo said...

I'm all in favor of people walking away from houses on which they are underwater, and leaving the stupid bank that was stupid enough to lend them the money high and dry.

I'm also in favor of stupid FBers getting foreclosed on when they can't pay the increasing cost of their loans.

What I'm not in favor of is non-participants in this stupid scheme paying for the participants' losing bets.

The rules of the game were set out from the beginning. When it comes to malinvestment, there is always a bagholder, and (per the rules) the potential bagholders are the ones who decided to participate in the malinvestment scheme. The actual bagolder is the one who got caught holding the hot potato when the music stopped.

Don't let your government turn you into the bagholder for the "greater good" of the economy.

Anonymous said...

from condoflip to youwalkaway:

America's Moral Compass

I guess that's why so many people say America is the most religious country on earth

Mammoth said...

One of the common arguments on HP AGAINST just walking away and sending ‘Jingle Mail’ to the lender is that it will kill a person’s credit.

But consider, 5-10 years down the road, when a lender is reviewing J6P & Jane Zinfandel’s loan application:

Lender – “Hmmm…it says here that in March 2008 you defaulted on your home loan.”

J6P – “Well, c’mon, EVERYONE was doing it back then. Looking back, $700,000 was a crazy price to pay for a house back in 2005, wasn’t it?”

Lender – “Yes, you are right- everyone was defaulting back then - it’s really no big deal. The Feds bailed out us lenders in the end, anyway. O.k., you’re good for $250K on your new home purchase.”

Jane Zinfandel – (walking out of the bamk 10 minutes later) “Snicker.

-Mammoth

Peter T said...

If someone is lucky enough to live in a non-recourse state, I would advice them, too, to walk away from their overindebtness. The lender knew about that possibility, but didn't insist on a large enough downpayment - tough luck for the lender. If walking-away is now made easier for borrowers by some companies against a fee of 1000USD, that's just good American entrepreneurship.

The borrowers should not be able, however, to walk away from cash-out loans through HELOCs etc, except through bankcruptcy: You took the debt, you pay it off.

Anonymous said...

Why do they have to have a pic of a BLACK family on the top??

Max said...

If you throw money at people and not ask for commitment in return, they will use you, and rightfully so.

Marky Mark said...

Born to Lose -

The Downside - just look at your pic.

Is that the kind of life you want for your children? Is that the kind of example you wish to set for them? Some values and lesson have a very high price tag.

Marky Mark

GT said...

gahhhhhhhhhhhhh

why didnt we think of this?!?!

Anonymous said...

Jim Crammer said today on Stop Trading!:

"In one year we will have a housing shortage."

Mammoth said...

One of the common arguments on HP AGAINST just walking away and sending ‘Jingle Mail’ to the lender is that it will kill a person’s credit.

But consider, 5 years down the road, when a lender is reviewing J6P & Jane Zinfandel’s loan application:

Lender – “Hmmm…it says here that in March 2008 you defaulted on your home loan.”

J6P – “Well, c’mon, EVERYONE was doing it back then. Looking back, $700,000 was a crazy price to pay for a house back in 2005, wasn’t it?”

Lender – “Yes, you are right- everyone defaulted back then - it’s really no big deal. The Feds bailed out us lenders in the end, anyway. O.k., you’re good for $250K on your new home purchase.”

-Mammoth

Anonymous said...

Would you rather have your credit score ruined for 7 years or be underwater for $400,000 on your house? It's a no-brainer. The average gross househole income is less than $400,000 over 7 years. Counting taxes, it's probably over 10 years. So you will be trading 20% of your adult working life for a credit score? I have a 750 FICO that I am willing to sell to any of you for a measly $200,000

DaveO said...

But I thought, as Condoflip.com used to proudly display on its site, that "Bubbles are for Bathtubs".

Anonymous said...

Does anyone know that the owner/founder of youwalkaway.com is Jonathan Maddux, former owner of San Diego based IMS Lending (sub-prime mortgage company)...he probably put most of these people in the loans in the first place! I wonder how all his lenders are feeling...

Anonymous said...

Who Cares! People need help through foreclosure. Did you hear about the former president of Countrywide? He's doing something now on the other side of the market, I think it's smart. It's the banks fault for allowing these loans anyways, I can't believe they were stupid enough to offer 100% financing for subprime borrowers and No Income No asset programs. Ray Charles could see this coming... We are headed for a long road of value declines...