Countrywide Still Making Dubious Loans in Chicago
If you listened to the media, you might think that all of the crazy exotic loans have gone away and now all you’re left with is a 30 year fixed at 7.25%. You’d be wrong.
I was in a new downtown Condo development recently and saw an interesting flier in the sales office. It was touting the loan programs you could use to purchase. Usually these fliers are put out to convince you that you’ll only have to pay $2,000 a month for your $700,000 condo. This one didn’t list monthly amounts, but still touted how easy it could get you into a loan.
Seems like Countrywide hasn’t learned from all of those “bad” loans:
- Extended Rate Lock programs for up to 2-years
- First 6 months are at no cost!
- Free Rate Float down
- Loan amounts up to $6 million – P&I or Interest-Only
- Full documentation – Stated Income – No document
Better yet “Pre-approvals completed in 2 hours!”
If all you saw was this flier- you’d think the good times were going on for forever. Oh- and you can get one of these loans for you “primary residence, 2nd home or investment property.”
Are there still people out there buying investment properties?
Countrywide will provide you with “loan programs to meet every need.” Don’t you worry.
Has anybody heard about Mortgage Exchange (their office is located on the 49th floor in Sears Tower). They are now teaming up with some guy Julio Vargas, who claims he can get short sales deals at $.44 on a dollar…sounds too good to be true. This other guy, who owns Mortgage Exchange ahs his weekly radio show on AM on Saturdays. They are know VERY actively looking for cash investors to finance their short sale buys. Anybody knows anything about this team?
I’d be hesitant to “invest” in something like that now. I’d rather buy a condo for 44¢ on the dollar than fund someone else. If it sounds too good to be true, it will probably end badly.
http://www.preforeclosureprofits.com/?gclid=CJLqg-7I4JICFQezsgod8yt9-Q
What’s up with this site?
Jason, (the first one)
Are you guys watching this meltdown? It is crazy. Thank god I know how to hunt and live off the land….
The huge leverage tailwind has turned into a headwind…we’ve slowed down, a lot.
Also, MEW’s (mortgage equity withdrawals) are zero and that ties into the consumer spending decline. The Home ATM is dead and no more living large on debt accumulation. Home prices will now decline even more than expected.
What?!! No 105% LTV combined mortgage balances so I can get some nice 21″ spinnin’ rims?
Isn’t what they’re doing unconstitutional? Against my rights as a consumer?
Don’t worry Bob, Obama will fix it. He is a messiah without any miracles, experience, or even written legislation.
Actually, I feel bad for whoever gets elected the next president….peak unemployment will hit around 2010-2012. Personally I’m more comfortable with McCain at the helm during these trying times, but people are free to disagree.
It’s tough being blue in a red state.
It’s tough being red in a blue state. (Oh the distractions at work!!!)
It is a good thing I got my place at almost 50% off 2006 prices. Maybe I’ll break even in ten years.
The next president is scre***ed. We are all going to be “blue” at the end of today…..
Countrywide should be shut down. They are the cause of this problem.
No, bad brokers such as yourself who didn’t counsel your clients are a good part of this problem.
You should be shut down.
ja,
Brokers are paid on commission. If his clients aren’t sophisticated enough to realize that people that are compensated on commission and are going to try to maximize their compensation then maybe they shouldn’t have been buying a house.
At the end of the day I think the banks are moreso at fault by providing all this leverage and free money. Ultimately the fault rests with the purchaser of the property however.
Bob,
The NAR represents itself as having the buyer’s interest at heart (at least the buyer’s agent does).
You have just admitted that even buyer’s agents care not about their clients.
The NAR should be shut down.
LETS SHUT EVERYBODY DOWN! What the heck….
Ja indirectly brings up my favorite topic…..the need for realtors. I am sure to get some unpleasant responses for the following.
The percent of commission has stayed relatively stable while home prices went up, hence increasing the commission and the resale price. Why can I not buy/sell my own home and have access to all the internet tools a realtor has? Ultimately, home buying boils down to writing a small ad, virtual tours on the internet, and walk throughs. The key is access to good internet sites for posting, which the National Association of Realtors has a lock on right now. Speaking of, do you need to be a realtor to list on http://www.condo.com? Yes, I do know that ala-carte realty exists.
I will agree that there are certain instances where a realtor can add value. The big problem realtors have is the quality. There are few barriers to entry and the brokerage offices just want more and more realtors to collect more and more fees. I went through licensing process to become a realtor just for the knowledge and it was simple.
I will always remember a realtor at the Lakeshore East sales center saying, “I just walk around looking for the hand in the air with a check.”
NPR had a great piece on 2:00 p.m. about a wholesale mortgage broker that made $100k+ a year to being absolutely broke and spending all her savings. She says that she can’t find a job because she worked in the mortgage business. The schadenfreude is so thick you can spread it. She says that she wants the government to freeze foreclosures so she can get back on her feet. $100k+ to completely broke in less than a year? Karma is a bitch.
What about you Homedelete. You said yourself you take advantage and charge high fees to your clients that are in trouble. Remember you said pay-day loans, co-signing for cars, ect.
You are a blood sucking attorney looking for respect? What a loser!
“You said yourself you take advantage and charge high fees to your clients that are in trouble. ”
I said that I would charge a large retainer you, which is different from bloodsucking clients for high fees. My offer still stands, btw.
I help people that are in trouble. I save their asses. Everyone rips attorneys until they need one and then their attitude changes.
Yeah, you tell em homedelete!