What in the world is going on!
Freddie Mac and Fannie Mae in trouble.
Too many mortgage companies out of business or in trouble to count. Who could have seen this coming. I saw it coming and I am sure you would have seen it coming to if you were in the mortgage business over the last few years.
Every time I tell someone the type of mortgages that were made back then they are dumbstruck. Why, the two programs below will give you some idea.
What do you think this:
Just tell me your income, I don't need those messy W2's or tax returns, you know they just give you misinformation anyway. We both know you make a lot more money then your tax returns show. As long as you have decent credit and tell me enough income I can finance you. What, you want to borrow $900,000 no problem how much do you make, and remember, you need to give me enough income. Great, $40,000 a month that should do it.
Does that sound like a mortgage you would like to fund out of your savings?
What about this one:
The payments to high, well we have a great program available to you. It is very flexible, you can chose to make one of four payments each month. You can decide to make a payment like its a 30 year fixed, or you can pay like its a 15 year fixed, your third option is to pay interest only, but the best option, and what 96% of all customers do, is make a very low payment that doesn't cover any principle and only covers some of the interest you owe. Some people call it negative amortization but I like to think of it as a way for you to get the home of your dreams. It doesn't really matter that you owe more on the home in a year then you borrowed because your home is going to go up, up, up in value, you're going to be way ahead of the game.
That's what many people were told. I guess being way ahead means bankrupt and the home foreclosed on.
That's not my idea of way ahead.
Here's my advice, if it sounds to go to be true, it probably is. Be smart find an honest trustworthy source for you major financial decision.
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