More Mortgage Mess

[nhboy]

Donna Pearce is one of those homeowners struggling to keep her life from unraveling. She is already four months behind on her high-interest loans from New Century Financial. She says New Century, now bankrupt, got her the loans by lying about her income. "After all of this blew up in my face, I realized that they falsified my income," said Pearce, a 53-year-old nanny who earns $2,100 a month in Connecticut. "It stated that I made way more than I actually make."
How much more? Pearce showed ABC News loan application documents that listed her income as $5,500 a month.

Richard Blumenthal is one of dozens of state attorneys general now investigating the mortgage industry. He recently filed four lawsuits charging lenders, brokers and realtors with a variety of deceptive practices, including falsifying a borrower's income, lying to borrowers about mortgage rates, and failing to disclose expensive prepayment penalties for borrowers trying to refinance.

LINK

 

[Larry Gude]

Why don't...

...you give it a rest and watch some ####ing football and drink a beer?

 

[bobbyb]

Do you ever stop?

 

[Pete]

I aint buying it. This is the consequences of being epically stupid. The media is going to cherry pick a very few sad cases and made them out to be poor victims of mean companies.

Do financial companies engage in predatory lending? Sure they do, but that does not absolve people from using their heads when agreeing to loans.

 

[WhoCares]

Don't people READ stuff before they sign the paperwork. Didn't the people see how high the payment was going to be? It probably said someplace in the settlement paperwork about the interest rate change. This is why you read everything at settlement.

 

[Tina2001aniT]

I aint buying it. This is the consequences of being epically stupid. The media is going to cherry pick a very few sad cases and made them out to be poor victims of mean companies.

Do financial companies engage in predatory lending? Sure they do, but that does not absolve people from using their heads when agreeing to loans.

As a settlement agent it is ridiculous what I see, so many people have NO IDEA what they are signing and just sign and pass, sign and pass....I try to explain the docs and usually, about 80%, of the time they end up telling me their life's stories while just signing docs.....scary.....

 

[JEB]

Exploiting loopholes and cheating those of below average inteligence.
Closing loopholes leads to bloated government.
There will always be stupid people.
Disclaimer: I hired a lawyer to look over my loan paperwork. Not so much for the legality, but as a translator for this feable brain.

 

[Pete]

Don't people READ stuff before they sign the paperwork. Didn't the people see how high the payment was going to be? It probably said someplace in the settlement paperwork about the interest rate change. This is why you read everything at settlement.

Especially today with the truth in lending laws. Don't they have to spell out in great simplicity the payments, the number of payments, the interest rate, the total interest paid at maturity, penalties, and so on?

If you get a variable rate loan and you are on a fixed income. And that payment is at or over the comfort level for your income when interest rates were at 50 year lows, it is only common sense to know that if the interest goes up a teeny bit you are now in an impossible situation.

 

[Pete]

Exploiting loopholes and cheating those of below average inteligence.
Closing loopholes leads to bloated government.
There will always be stupid people.
Disclaimer: I hired a lawyer to look over my loan paperwork. Not so much for the legality, but as a translator for this feable brain.

I wonder how it would go over if some loan brokers said "You know I can't do this. First off you are dumber than a bag of navel oranges, second you can't afford this and you are screwing up."

 

[JEB]

I wonder how it would go over if some loan brokers said "You know I can't do this. First off you are dumber than a bag of navel oranges, second you can't afford this and you are screwing up."

That would cut into brokers profits.
By the way: what does 'fiduciary responsibility' mean?

 

[MMDad]

As a settlement agent it is ridiculous what I see, so many people have NO IDEA what they are signing and just sign and pass, sign and pass....I try to explain the docs and usually, about 80%, of the time they end up telling me their life's stories while just signing docs.....scary.....

With the huge stack of forms, it can be hard to make sense of what you're reading after a while. It's not like you get a week to review them.

That's why I've always used a lawyer. It's worth the $$$ to have somebody who works for you and knows what they are doing look at the paperwork.

He would point out certain areas on the forms and ensure that I understood what I was signing.

 

[Tina2001aniT]

With the huge stack of forms, it can be hard to make sense of what you're reading after a while. It's not like you get a week to review them.

That's why I've always used a lawyer. It's worth the $$$ to have somebody who works for you and knows what they are doing look at the paperwork.

He would point out certain areas on the forms and ensure that I understood what I was signing.

That is the same thing that I am supposed to do as a settlement agent. My point was that people don't care, they act like they don't WANT me to explain them, they would rather tell me about suzies brothers baby mama.

 

[JEB]

That would cut into brokers profits.
By the way: what does 'fiduciary responsibility' mean?

bump

 

[vraiblonde]

Don't people READ stuff before they sign the paperwork. Didn't the people see how high the payment was going to be?

That was the first thing I thought. Even if the mortgage broker did falsify her income, she didn't know what the payments were and whether she could afford them?

Even if you don't read all the fine print, you certainly find out what your monthly mortgage payment will be.

 

[Tina2001aniT]

That was the first thing I thought. Even if the mortgage broker did falsify her income, she didn't know what the payments were and whether she could afford them?

Even if you don't read all the fine print, you certainly find out what your monthly mortgage payment will be.

It is definately not as easy to be "tricked" as they are making it out to be. There are many places in a loan package where the payment is listed. Not to mention that any mortgage with an adjustable rate has an adjustable rate rider to the deed of trust, a seperate 2-3 page document stating that it is an adjustable rate mortgage. The truth in lending also states what your payment will be for the entire term of the loan, a fixed rate loan says 360 payments at $XXX.XX. Adjustable loans will flat out say 100 payments at $xx, 200 payments at $xx and 60 payments at $xxx. The loan amortization schedule also states EACH payment and its amount.

 

[LexiGirl75]

...you give it a rest and watch some ####ing football and drink a beer?

I brought my bf a 6-pk of Miller Lites Sunday, wasted one all over him when I accidentally knocked it over and didn't realize how much that thing can suds. I held it over him and his outfit so it would miss the carpet and couch.

Still can't get it out of my head his words during the pour down. "Man, what you doing?" I told him, saving the sofa and carpet.

 

[desertrat]

I brought my bf a 6-pk of Miller Lites Sunday, wasted one all over him when I accidentally knocked it over and didn't realize how much that thing can suds. I held it over him and his outfit so it would miss the carpet and couch.

Still can't get it out of my head his words during the pour down. "Man, what you doing?" I told him, saving the sofa and carpet.

Your bf has an outfit?


Oh wait, you were talking about clothes weren't you?

 

[Pete]

bump

http://www.efmoody.com/arbitration/fiduciary.html

 

[LexiGirl75]

Your bf has an outfit?


Oh wait, you were talking about clothes weren't you?

You know you can test a man by how quick he catches on to certain words. He has been really quick to tell me things that don't sound right like when he cuts his hair and I say "well, go ahead and finish doing your hair" Or when I ask him to carry my purse and hold it by the long strap lmao.

It's actually funny to screw with y'all.

 

[JEB]

Thanks Pete, but it was a retorical question in answer to the ones who think the loanee's are solely to blame.