LJWorld.com

nobody1793 (Anonymous) says…

Wow. Does anyone really want any free advice from Countrywide?

alm77 (Anonymous) says…

That's what I was thinking….

Let's go to seminar with a lender who has the highest foreclosure rate in the nation? I don't think so.

oldvet (Anonymous) says…

yeah… especially if you don't plan on making your payments!!!

Don't pay your rent, you get evicted… don't pay your house payments, you get a foreclosure.

I'll bet their rate of foreclosure on people who make their payments is pretty close to 0%.

christie (Anonymous) says…

First you have to find someone to actually finance your home. Once you've done that then pay someone under the table to over-inflate the value. Then, since the amount owed on the 'collateral' has a good LTV ratio, take out a nice big fat second and then a third mortgage. Bank that money, and then walk.

Some guy on Wall Street will be holding your 'paper' and meanwhile, you just banked 40 to 50 thousand. By the time the dude in N.Y. figures out he got hosed, you're long gone - let the Government bail out the guy in N.Y.

That's about it in a nutshell.

Pywacket (Anonymous) says…

Christie~ Finish the story—what's your next move, once they catch up with you and jail you for fraud? Is that when that lucrative book deal kicks in? ;-)

My real estate experiences (going back to 1980) have been a lot more boring, I'm afraid. Put money down, pay on the mortgage, reside in the house. Sell, buy a new one (with more money to put down), pay on that mortgage. Make some improvements along the way. Repeat as many times as desired.

I would like to march my single 40-something sister to this seminar. It breaks my heart to see her dumping money down the rental toilet year after decade… and being afraid to paint any of the chalky white walls… She has the money, but not the knowledge or confidence to take the plunge. Maybe a seminar would help her realize that she could do it—buy a condo to start with—something that would not tax her landscaping or maintenance skills.

nobody1793 (Anonymous) says…

You should march your single 40-something sister to the public library where I'm sure there are plenty of books about financial literacy, and not to some seminar by a realtor and a lender who are undoubtedly driven by the prospect of stirring up business for themselves.

alm77 (Anonymous) says…

Oldvet and Py, I'm not disagreeing with you on either point. I'm just saying taking advice from a company who has a reputation for “approving” people for loans they can't afford probably isn't a good idea. Used to be you weren't approved for a loan you couldn't afford, that's not the case any more. People who need “information regarding the process for building wealth, gaining access to tax breaks and following steps toward home ownership” don't need to start with someone on commission, they need to start with a calculator, a budget and a financial counsellor who can give an unbiased opinion.

d_prowess (Anonymous) says…

I know that Countrywide had/has problems, but I did just buy a house and used Countrywide in Lawrence for the mortgage. The person I worked with was great and he made sure that we didn't do anything we couldn't handle. So while some may want to avoid them, just know that not everyone there is out to screw the customer.

LogicMan (Anonymous) says…

It didn't take long for the sharks to return to the water …

Work hard, live well-within or below your means, save for the 20% down payment, and build a solid credit record. That's my advice, but maybe I'm old-fashioned.

toe (Anonymous) says…

Countrywide is one of the most predatory of all the mortgage lenders. Capitol Federal is a little better but not much. This program should only be presented by credit counselors and bankruptcy lawyers to warn home buyers of the many tricks commissioned loan officers use.

Sigmund (Anonymous) says…

Unless you can find a “real bargain” continue renting in this market. By a “real bargain” I mean a house you don't mind risking 20% of your own money in down payment with a reputable lender who will put up 80% and where the PITI (Principle Interest Taxes Insurance) payments on a fixed rate loan (not more than 30 years) is no more than 25% more than what you pay on your current rental and no more than 25% of your monthly income. Otherwise, continue to rent.

No matter what you decide, do NOT use Countrywide and do NOT use Wachovia's (formerly A.G. Edwards) “Pick-a-Payment.” If you can find a local lender who will keep the loan in their portfolio use them but expect to pay an extra 1/8 point. It is well worth the extra money to live in the same town as the person who services your loan for the next 30 years. Do NOT believe that “real estate” constantly goes up, it doesn't and probably won't in the future. Any scheme that depends upon real estate appreciating in the future at a fixed “5%” or “1% above inflation” will most likely fail. The ONLY thing that is guaranteed to go up year after year will be your tax bill.

christie (Anonymous) says…

But Pywacket - there is nothing illegal in my plan.

It's the American way. Is it any worse than a Broker putting on the Loan Application that I work for him so my 'income' looks better?