Begging to Lose Money? Think About It!

There are two morals to this story. First always use a legal and financial adviser if you are about to make the largest investment of your life. Second, there is no such thing as boilerplate or standard clauses.

So you have a “lender” who is offering to lend you money, even though you have trash credit and no visible means of support, at a very low rate and they offer to further reduce the monthly payments for as much as five years, and they are paying wild commissions and salaries to everyone involved while spending hundreds of millions of dollars just to get your signature. And good news the appraisal came in $20,000 higher than expected so you already have “equity!”

Some of the rates have been as low as 2% or even less in certain cases. Many if not most of the loans in certain classes were nearly certain to fail. Yet onward and upward the banks persisted in driving up the money supply and raising housing prices like the tulip craze back 400 years ago.

It was all coming from Wall Street investment banks who caused the 1929 crash. The investment banks made money lending money like that starting around 1996. The loans failed and still they made money. They didn’t need the bailout but they took it anyway.

So I ask you to consider the fact that the investment banks were indeed making a lot of money on 2% loans. How? By selling your signature, your name and your financial reputation all without disclosure or even a wink at getting your consent. That’s because they don’t want to share the bounty with you. They didn’t just make money. They practically invented a printing press without the need for physical printing. All the contracts, all the notes, all the mortgages, all the closing documents exist only in digital images and data.

So those 2% loans, even though they failed, made about $20 for every dollar loaned. And that’s the dirty secret they are hiding behind the “free house” myth that most people believe.  And now, adding insult to injury, they want your house too, even though the proceeds of sale will not be used to pay down the debt.

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