FINAL NOTICE: APPLY BY MARCH 1ST & MAKE NO MORTGAGE PAYMENTS UNTIL MAY 2007
The Option ARM fraud tri-fecta hit me today. First on the radio, second on a fax a relative sent me, and third a phone call I received. The radio add was clearly deceptive, the fax I will share some of with you, and the phone call full of hope and a prayer about a friends great offer. A loan officer friend. I hate this.
As I listened to the radio add I wanted to just throw up. No pictures here I promise. (I did think about it). Then my relative and the phone call seemed so hopeful and the offer so full of crap I wanted to send them all to jail. Why the government doesn’t address this false advertising I dont know. They should start by making an example of the big boys, the on line lead generators that lead with this 1% full of baloney product.
The heading: OLD TERMS and the current lender info
followed by their data and the heading:
INTEREST RATE: 1 %
Payment TYPE: FIXED
No one is going to give you a 1% fixed rate. NO ONE NO ONE NO ONE NO ONE NO ONE. GET IT!
For your tender review, here is part of the fax I received and some commentary.
Dear (My relative)
REDUCE YOUR MORTGAGE PAYMENT TO $772 PER MONTH.
(My relative) after carefully reviewing your original first mortgage loan amount of $(the amount) with America’s Wholesale lender, we have PRE-QUALIFIED you for a new mortgage payment of $772 per month. This is a fixed payment
Commentary: My relative thought it was her lender by the way the heading was organized. She loved the payment amount. It is not a fixed payment except through being a negative amortization loan. You pay $772 and the difference is added to your mortgage balance.
There are three more paragraphs of fluff suggesting they could take cash out and go have a spending party.
My new Friday Fantasy is that some day someone will write me and say they read my tirades and were saved.
My husband opens our junk mail, I just worry about the bills. He saves the credit card and mortgage offers so that I can read them when I have time. They are mostly disgusting. I have been pre-approved for a 320K home equity line of credit. Too bad my home isn’t worth that much. What really gets me is the credit card offers my daughter gets. She is a grad student and teachs at the U. She makes less than 12K a year and has a net worth of maybe 4K. Yet she gets offers for huge lines of credit. She is too smart to bother. Some women her age are not as saavy, one of her friends has already accumulated 10 years worth of debt and owns nothing.
sad