Investors!

I have been reading more about the lending practices that were going on in 2005 and 2006. Holy cow. The buyers of houses were not coming in asking for loans, it was more like the mortage people were pulling in folks off the streets to sell them.

I remember how closely scrutinized I was when I got a mortage. I had to bear all my financial secrets... How long had I been working, how much I was making, how much in assets, and on and on... they were very careful. I had been a fairly frugal guy up to that point and when it was clear from bank statements I could back up my mortage. Then they started the sell tactics and I got the upper hand in negotiations with points etc...

this was clearly not done in the past two years. So why? Because the secondary buyers of the mortages saw the attractive rates. What they did not know is how little background was done on the buyers. So the GREED of the secondary people fueled the mortage companies to keep pulling people in off the streets.

My take. Look closely into stuff to good to be true. Buying Mortages is much more risk laden than people thought. As an individual if you personally are going to make a loan to make money, are you not going to make sure in everyway you can the person borrowing from you is good for it? Jeeeeez.

But if your job is just to sell that Mortage, sell, people will buy these things... one might feel free of responsibility to make sure the individual is good for the money. You as the seller of the mortage dont feel the risk directly cause you have been told the secondary market will pick it up. NOt good.

Where am I off on this, if you dont mind, experts? Is this way off base?

[Danzig]

i know countrywide contacted us several times about refinancing at a lower rate. BUT, unless the rate is much lower, it's not worth it once you pay all the fees, closing costs, etc. another time they offered a second mortgage to pay off my credit cards. i gleefully replied that i HAVE no credit cards. man was flabbergasted. then he said you should tell others how to do that...then he said no, wait. don't do that, it'll put me out of business!

Originally Posted by Danzig

i know countrywide contacted us several times about refinancing at a lower rate. BUT, unless the rate is much lower, it's not worth it once you pay all the fees, closing costs, etc. another time they offered a second mortgage to pay off my credit cards. i gleefully replied that i HAVE no credit cards. man was flabbergasted. then he said you should tell others how to do that...then he said no, wait. don't do that, it'll put me out of business!

Aha!
So they see you can make your payments so they try to take on your other debt (which you dont have) to make money off of that. Sounds a bit desperate. Getting into areas they dont belong.

Aside: This is why I like this board. We got a bunch of smart people that share info and I learn more than just horses.

[Danzig]

Originally Posted by pgardn

Aha!
So they see you can make your payments so they try to take on your other debt (which you dont have) to make money off of that. Sounds a bit desperate. Getting into areas they dont belong.

Aside: This is why I like this board. We got a bunch of smart people that share info and I learn more than just horses.

i'm thinking about checking into that 'lifelock' program...one of the things it does is keep you from getting constand credit card offers. it might be worth the $10 a month just to keep from getting those. every day.

i wonder tho if the second mortgage business is one of the things that is fueling the current problems. they preach consolidation, lower your payments,etc. BUT people who have no financial restraint might do what my in laws have done--more than once. pay off credit cards and loans....put it all in one payment...then they have extra money. get more credit cards, run them up. right back to square one. only this time, they have mortgage, second mortgage, and more credit card debt. then they run into problems making payments, fall behind, and lose their home because all of their debt was included in a payment they can no longer make.

my son said he was getting a card for 'emergencies'. i told him he better not, that he'd be surprised how many things suddenly seem like an emergency!

[hi_im_god]

Originally Posted by Danzig

i'm thinking about checking into that 'lifelock' program...one of the things it does is keep you from getting constand credit card offers. it might be worth the $10 a month just to keep from getting those. every day.

i wonder tho if the second mortgage business is one of the things that is fueling the current problems. they preach consolidation, lower your payments,etc. BUT people who have no financial restraint might do what my in laws have done--more than once. pay off credit cards and loans....put it all in one payment...then they have extra money. get more credit cards, run them up. right back to square one. only this time, they have mortgage, second mortgage, and more credit card debt. then they run into problems making payments, fall behind, and lose their home because all of their debt was included in a payment they can no longer make.

my son said he was getting a card for 'emergencies'. i told him he better not, that he'd be surprised how many things suddenly seem like an emergency!

you don't need to pay anyone to get taken off the mailing lists for pre-screened credit offers.

go to www.optoutprescreen.com and register there.

that will get your name removed from the lists that equifax, experian, innovis, and transunion provide to buisnesses that want to offer you credit or insurance.

you can choose to do it forever or for a 5 year period.

[ddthetide]

Originally Posted by hi_ridiculous_god

you don't need to pay anyone to get taken off the mailing lists for pre-screened credit offers.

go to www.optoutprescreen.com and register there.

that will get your name removed from the lists that equifax, experian, innovis, and transunion provide to buisnesses that want to offer you credit or insurance.

you can choose to do it forever or for a 5 year period.

thanks for that link. we've been wondering how to stop some of the credit card mail that we get. we spend ridiculous amounts of time shredding that crap.

[Danzig]

hmmm.
glad i brought it up then...thank you god! lol