It is at this point fascinating; and pathetic to watch ‘the financial community’ slosh around in its tanks of s**t poured straight from its eloquently designed pipeline.
Stories from the media would be wiser to simply start telling the truth. But they wont get it. They are still delusional, believing that the water and electricity services to Manhattan can somehow keep on infinitely…
Everything is paid for in false dollar, From false transactions, by false brokers, making illegitimate trades, based on grossly exaggerated numbers, calculated by a computer network specializing in theoretical applications.
Well at least the BRICS nations will have plenty to offer the planet, while the liars in North Carolina and everywhere else get to reap exactly what they have sowed.
This claim is the sole indicator, but no longer commemorates the original lender or the latest in a series of alleged owners
A HELOC with a ten-year interest only payment schedule, followed by balloon payments and tripling monthly payments, is an obviously abusive credit product. It’s got “Designed to Fail” written all over it.
A few questions we might ask: why would anyone take out a loan on their house, knowing that they’ll have to come up with a $25,000 payment ten years down the road, or risk losing their home? Assuming that the person is not especially stupid or delusionally optimistic, we might guess that either 1) they are unaware of the predatory loan conditions, or 2) they have been convinced that they won’t be a problem.
My educated guess is that some people were sold these loans without being made aware of the dreadful provisions and that others were told, “oh, don’t worry, you’ll be able to re-finance long before the payment resets and the balloon payment comes due.” As the Reuters article states:
For those that have had to question the reality of their loan, a different picture emerges
There are scenarios where everything works out fine. For example, if economic growth picks up, and home prices rise, borrowers may be able to refinance their main mortgage and their home equity lines of credit into a single new fixed-rate loan.
I can just imagine the sales pitch now. Prices are rising and will forever! You’ll always be able to refi and your house is constantly gaining value, as if by magic. What could possibly go wrong?
The other question is why would a bank offer these types of products in the first place? Again, two possible answers: 1) they believed their own BS about infinitely-rising home prices, or 2) certain individuals within the banks stood to make lots of money, personally, by inflating loan volumes, regardless of quality; i.e. running the bank along the classic “bankruptcy for profit” model.
Assured that housing prices would only go up, they would get a conventional loan for 80%, and then a HELOC for the remaining 20%. How else could they afford the home? (snark)
I know of at least 3 couples that did this… and I think it was kinda standard practice since they we’re all first time homeowners. What’s even more surprising… I believe it worked out for all three. They focused on paying the HELOC down first since it had a significantly higher interest rate and kept them from refinancing. Since housing prices have recovered, they should even have some equity now.
One asks the servicer who owns the loan and there is no reply. One asks a legal question under various federal laws and one gets no reply. One submits discovery to get legal answers in court. There are no answers forthcoming. There is no legal proof that the lien still exists, except the claim in county records. When there are no answers to legal questions, there is no one willing to claim ownership. The only thing alleged is a servicer alleging it has a claim. Agency is not valid when there is no lien, secure claim or chain of title to support what is left in county records. So the documents have to be created to support today’s claim, and crime must be committed, and there are any number of participants willing to join the crime knowing there will be no prosecution for their actions. Imagine not having to ever say you are sorry.