lol

[FelixDeCat]

lol

 

[slugg]

Ever heard of JPMorgan Chase?

 

[halik]

This one time I went to my bank and they put a gun to my head and told me I HAD to take their money. Terrible.

 

[FelixDeCat]

Ever heard of JPMorgan Chase?

yes

 

[IronWing]

My favorite one was the 1 month LIBOR ARM with monthly rate changes, annual payment changes, a 7.50% cap on payment increases...all of which guaranteed negative amortization (balance GROWS with each mortgage payment).

Once you find out the nightmare you have, you can find out you cant refinance unless you prepay a 6 month interest penalty for the first three years!

If your loan balance reached 125% of the amount borrowed, your payments went up to fully amortizing regardless of the payment cap (the payments were based on a 1% interest only, no principal payments, for the first year), so you are talking a double, triple or higher increase in payments which for many meant foreclosure.

The effect was you had dramatic 30 min phone calls from desperate borrowers who were effectively trapped in place by sneaky brokers seeking fat commissions who explained little to unsuspecting borrowers seeking a 1% interest only payment jumbo mortgages. :'(

This is where I get off the bus. Every practice you've described is utterly sleazy but... people who won't take the time to read and understand one of the most important documnents they may ever sign are asking to be screwed. ♫ Read the book, read the book, read the mf'ing book ♫.

 

[Scarpozzi]

It pays to have an IQ above 50 and to actually read what you're signing 4when dealing with crooks.

I typically don't trust mortgage brokers because they only want commission. Once you get past that fact, they don't necessarily know the companies they're selling loans for. In most cases, the brokerage is simply searching online networks to find companies selling loans...they don't always have all the fine print past APR and points they promise. If you don't at least shop around for a viable company, it's on you.

 

[DrPizza]

This is where I get off the bus. Every practice you've described is utterly sleazy but... people who won't take the time to read and understand one of the most important documnents they may ever sign are asking to be screwed. ♫ Read the book, read the book, read the mf'ing book ♫.

I'd bet at least 50% of the people who are eligible to purchase a house; maybe even a higher percentage, would not be able to fully comprehend everything they were signing.

 

[Belegost]

So there I was walking down the street, I was a bit distracted on the debate between going to Smashburger or Noodles and Co. so I missed the warning signs. As I passed by a narrow gap between buildings a man in a dark suit (with impeccable choice of tie) leapt from the shadows. His ferocity was amazing, quickly knocking me to the ground.

I yelled loudly, calling out for help against my attacker, but from the corner of my eye I saw people walking past, purposefully looking away, unwilling to get involved.

As we struggled I felt a pen forced into my clenched fist, I fought to keep my arm away from the papers on the sidewalk, but after breaking my ring and pinky fingers the pain sapped the strength from my arm, I could do nothing but cry futilely as my mangled hand was manipulated into signing and dating the vile document. As the weight of the ambushing loan broker lifted off me, I rolled over cradling my abused hand, tears of anger streaking my face. I watched as another dark suited man stepped from the shadows, his notary stamp quickly embossing the papers.

It was official, I had fallen victim to a predatory mortgage...

 

[FelixDeCat]

So there I was walking down the street, I was a bit distracted on the debate between going to Smashburger or Noodles and Co. so I missed the warning signs. As I passed by a narrow gap between buildings a man in a dark suit (with impeccable choice of tie) leapt from the shadows. His ferocity was amazing, quickly knocking me to the ground.

I yelled loudly, calling out for help against my attacker, but from the corner of my eye I saw people walking past, purposefully looking away, unwilling to get involved.

As we struggled I felt a pen forced into my clenched fist, I fought to keep my arm away from the papers on the sidewalk, but after breaking my ring and pinky fingers the pain sapped the strength from my arm, I could do nothing but cry futilely as my mangled hand was manipulated into signing and dating the vile document. As the weight of the ambushing loan broker lifted off me, I rolled over cradling my abused hand, tears of anger streaking my face. I watched as another dark suited man stepped from the shadows, his notary stamp quickly embossing the papers.

It was official, I had fallen victim to a predatory mortgage...

true

 

[FelixDeCat]

It pays to have an IQ above 50 and to actually read what you're signing 4when dealing with crooks.

I typically don't trust mortgage brokers because they only want commission. Once you get past that fact, they don't necessarily know the companies they're selling loans for. In most cases, the brokerage is simply searching online networks to find companies selling loans...they don't always have all the fine print past APR and points they promise. If you don't at least shop around for a viable company, it's on you.

This was back before brokers had to be registered.

 

[jagec]

My favorite one was the 1 month LIBOR ARM with monthly rate changes, annual payment changes, a 7.50% cap on payment increases...all of which guaranteed negative amortization (balance GROWS with each mortgage payment).

That's actually a great product...for 0.1% of the population.

 

[BurnItDwn]

It pays to have an IQ above 50 and to actually read what you're signing 4when dealing with crooks.

I typically don't trust mortgage brokers because they only want commission. Once you get past that fact, they don't necessarily know the companies they're selling loans for. In most cases, the brokerage is simply searching online networks to find companies selling loans...they don't always have all the fine print past APR and points they promise. If you don't at least shop around for a viable company, it's on you.

They do not typically write contracts in English though, they are in legalese, which is intentionally difficult to decipher and comprehend.

 

[IronWing]

They do not typically write contracts in English though, they are in legalese, which is intentionally difficult to decipher and comprehend.

Would you sign a contract you didn't understand when you knew the stakes were so high?

 

[BurnItDwn]

Would you sign a contract you didn't understand when you knew the stakes were so high?

You do not understand my point.

Thats not how it works.

As a layman, you read the contract several times, you then think you understand it. Maybe you call your eccentric uncle who once made a clever joke and he goes through it with you...


You might think you understand it, but, there can be language that to a layman appears to say one thing that might mean something different to a lawyer or judge. You may think you fully understand it, but, there might still be a number of elements that are not clearly understood... (or 'open to interpretation')

 

[Printer Bandit]