Is it ironic that there's one of these advertisements on this page? "Nothing says responsible money management like women in cargo pants dancing to a backdrop of, I think, fireworks!"

Hi are there any investors there who buy homes. And sell them to people on land contract????????????????

I am a mortgage professional and I'm very angry that this mortgage mess has happen. What people don't realize that every time something like this happen and the government step in and start to regulate everyone feels the pain and has to pay the price. It's sad.

The problem is is that people nowadays are so materialistic that they see something, they buy it and do not think of the reprocussions. They look at the monthly payment and thats it. "I love that 62" plasma, I can put it on my CC and only pay $100 a month." Wake up, it will only take you 20 yrs to pay that off. Also, people are so concerned about the fact that they have go with the 15yr fixed so that they can pay off their home with a lower ammortization period, which inturn puts pressures on the everyday purchases; Wal-Mart, grocery stores ect. I deal with these people on a daily basis. ALot of consumers want something and they want it now! Yes, I do believe that there are deceptive brokers and unfortunatley it only takes a few bad bulbs and all the lights go out. Ultimatley people know their lifestyles more than the broker, all we see is the #'s. THEY ARE THE ONES WHO MAKE THE FINAL DECISIONS, THEY ARE THE ONES WHO SIGN THE DISCLOSURES. There are other products and companies that extend credit to clients as well, with deceptive terms. Look at credit cards! I can't tell you the countless times that I have had borrowers tell me that they have a fixed credit card. Revolving lines ARE NOT fixed. They tell borrowers that their cc's are fixed and then any lates on credit, whether or not it the same card, they have the right to change the terms of the lending and jack the rates to whatever they choose. That is disclosed as well, just like mortgages, which people tend to not see the "big picture" or choose not to believe it. And don't even get me started on Consumer Credit Counseling and Debt Management.

to Greg, Houston TX. the reason these companies get away with these kind of practices has one reason, and that is simple, how many of those politicians own or run some sort of mortgage or real estate? and the ones that don't or are not involved in the beurocracy of thses country are the ones that make the major donations to the presidential campaings. so that answers your question why doesn't the government intervenes or does anything about it. same thing happens with the insurance companies. i tell you it is a bunch of unscropuluos, corrupt government we have.

The jerks that sign up for those loans are told that the $499 payment will go to $1000 in a few months, but they don't care. They just think they'll worry about that when the time comes, and will somehow be able to afford it. It's the same mentality that causes people to max out all their credit cards without regard to whether or not they will ever be able to pay.

I also dislike deceptive advertising, predatory lenders, and those borrowers who engage in excessive consumption. However, one of the ~fundamentals~ that has been just recently pointed out on many major websites (and was referred to earlier in this thread) is kind of D'UH (and was seen by LOTS of people earlier) is that basically, due to artifically low interest rates promulgated by the Fed to stimulate the economy after the 2001 recession, housing prices in many, many markets have FAR outstripped the ability of majority of workers to purchase a home at anything like a reasonable percentage of purchase price vs. income. The old rule was something like 2-2.5x. In many markets now, it's 3 - 5x. Something has to give in that climate, and now it's giving. Real estate has a long way to fall before we achieve a reasonable equilibrium.

We support & bail-out entire countries thru "foreign aid". Why not our own people? It's too late to police
what has been done. Underwriters should be more strict before approving loans.

I am a mortgage banker and I have lost many clients by refusing to write option arm loans.
You post this story on your site but you have this exact advertisement on your webpage, right above where you have the link to this story. The banks are wrong for advertising these kinds of loans but why are you condoning it by posting them on your website? Someone needs to be the first to put a stop to these irresponsible advertising practices, whether its the banks or the ones doing the advertising....

I believe that the exact same ad quoted in this article is on the MSN home page right now. Interesting, huh? MSN should probably take that ad down if they're going to tout it as fraudulent.

The State of Florida has very specific language that must be included in any advertising that quotes rate or payment amount. Unfortunately, Internet companies are National and are difficult to police. If you are considering any kind of financing, you should always look for a Licensed Mortgage Broker who is a member of your states Association of Mortgage Brokers, or Bankers. The one good thing that will come from all of this, is that the dishonest, unlicensed brokers, originators, loan officers...call them what you will, are leaving the industry in search of the next quick buck. Good riddance! The professionals will still be here to honestly serve you. Word of mouth and referral business has always been the best way to advertise. Next time, call a Licensed Mortgage Broker.

The State of Florida has very specific language that must be included in any advertising that quotes rate or payment amount. Unfortunately, Internet companies are National and are difficult to police. If you are considering any kind of financing, you should always look for a Licensed Mortgage Broker who is a member of your states Association of Mortgage Brokers, or Bankers. The one good thing that will come from all of this, is that the dishonest, unlicensed brokers, originators, loan officers...call them what you will, are leaving the industry in search of the next quick buck. Good riddance! The professionals will still be here to honestly serve you. Word of mouth and referral business has always been the best way to advertise. Next time, call a Licensed Mortgage Broker.

great job dan riverton from UT

I am a mortgage professional-have been for 10 years- I have made a fortune by helping people SAVE MONEY. It is obvious that there are approximately 2-3 colleagues on this page that actually know what they are talking about. Here is the problem with everyone complaining about loosing their home. They didn't stick to the plan. They had options and ignored them.
even if you did stick to the plan, i guess you had a bad plan.

If i were in a position that may cost me my home, i probably wouldn't be on the computer complaining on a blog page to folks that don't care,- may care but can't help,- do care and find comfort that they are not in that situation,- or just simply reading for the shear entertainment (such as myself). Personally, if I were going to lose my home, I would probably get my ass out find a higher paying job, or a 2nd job or just say the hell with it and continue to bitch to the aforementioned readers.

It is clear that most of the participants on this page do not have a clue about finance which leads me to believe that is why they are in their current situation.. Here is a silly analagy; But relative!

I am not in the dog breeding business, but if I buy a dog from a dog breeder and I get bit. Should I blame the breeder because i didnt know that pit bulls were aggressive animals. I'm the idiot that bought a pit bull. I think that we should get rid of all dogs except hound dogs. Because I don't know anything about dogs, should I blame the breeder, the dog, or the government who allows people to sell dogs. Why does the government allow people to sell dogs that bite. I should have done more research on dogs. Because I got bit by the dog,- now I have thousands of dollars in medical bills and I can't afford medical insurance and I think the government should pay my medical bills because the scam artist out there are advertising cheap guard dogs.

There are--WERE-- great lending programs out there for the credit challenged and the savy investor specifically designed to help americans with homeownership and smart financial planing.

Did someone get a bad broker... Well guess what. We have all had bad advise from someone.. doctor, lawyer, auto mechanic, lawn specialist, hair stylist, teacher, whatever, etc... Cry me a river, I would rather lose my home on behalf of my own ignorance than to have terminal cancer or worse- my children have a terminal or chronic disease. It could be worse... Whatever your situation the solution to a better future is in the mirror.. go ask that person-- what can i do to improve the ,oh-so crappy situation, and start putting yourself on the path to recovery. Maybe you can't change what has happened-- but you can change what happens next. Take control of your future and stop whining. Or keep whining-- I find it entertaining...

The rich get richer because they find ways to get richer in this wonderful world of free enterprise... offered to you by the government that you slander...

So buck up little camper... and get with the program or get off campus.....

This is great!!! Hey, I welcome your response @ toobadsosad00@yahoo.com ( that is zero zero -not oo)

i will anxiously await your emails. and we can work thru your demise...

There's 227 comments on this article already and I'm sure they are saying much of what I am. I can't stand the way lowermybills and LendingTree advertise. As a marketing manager at a small mortgage broker, I've analyzed them before and the fine print is almost criminal. The companies that buy these leads are just as complicit. I've always noticed the "as seen on..." references as well. It's not just Oprah. I'd be interested to know how many other companies get used as a voucher.

I'll admit, consumers need to be smarter. They should know better, but the advertising practices are irresponsible no matter how you look at it.

a side note too...we've just found out that if your are receiving "free" credit reporting it's not the same report lenders are getting from the major credit
agencies (and we have proof)it's seems like fraud to me....now i understand why...1. the lenders are paying them for it and 2. if these credit agency's also own lending corps...... now wonder

Greed in the mortgage industry has put everyone where they are now. Though a borrower should be responsible for what they are signing, make no mistake how much everyone in the process from top to bottom was pressured to get loans through. As an underwriter, I can't tell you how many times I was told to "push the button". Approve everything at all costs, or someone else will get the commission. So now, we've gone back 15 years to real lending with fixed terms, verified income and decent credit/assets. It's about time and I am so glad I'm out of this business. :)

The credit reporting agency, Disclosing everything about you. Where you live, work, who you owe, whom you have paid, almost all your personal info. Then they come up with a score, that no living person can argue with. Your financial life is based on this mysterious number. They say companies wanting to do business with you, or already are, may VIEW your report at anytime, but this does not reflect your score because it is not an inquiry. Then what is it. What happened to the Privacy Act? Who made these credit agencies GOD. They control your life, are merciless if you are ill in a country without health insurance. If you go late on anything more than 90 days for any reason, and fight for years to fix it you are treated worse than the guy who says the heck with it and goes BK. He gets offers for new credit One day out of BK. Now they are basically selling you mortgages? If you want to see what they are saying about you, you have to buy your report. Who came up with this idea. Put something in the newspaper about your business associate. They can sue you for slander.
Maybe I am just dumb but it seems like some form of government linked control to turn us into a herd of cattle

Well,the chickens are coming home to roost.For several years I have been amazed at the proliferation of ads touting mortgage capital amounts that bear no resemblance to the monthly mortgage payments.Being a CPA by profession I do not even have to read the fine print to conclude that this means "negative amortisation".However I am pretty confident that a substantial percentage of those getting these mortgages really think that these are cheap low interest mortgages and do not fully comprehend the implications of the resetting of payments to coincide with the rates actually charged as well as the resetting of interest rates themselves.Your article states that the Truth in Lending Act applies and is enforceable by the the Federal Reserve and that also the Federal Trade Commission is responsible for policing these ads and ensuring non-deceptive practices.These institutions have clearly been asleep at the wheel ad ,as such,a crash was inevitable.These mortgages were predicated on the one way(up)movement of property values.Now that property values are going the other way,there is and will be for some years to come a rash of foreclosures and bankruptcy of lending institutions.The question must be asked loudly and answers must be given "WHY WERE THE REGULATORS NOT ENFORCING THE LAWS? WHAT WERE THEY DOING?".It is time for some heads to roll and for a thorough review of these regulatory bodies to ensure that persons hired to do certain jobs do in fact do these jobs.

It really doesn't matter who's in the White House, the grass roots of our country are constantly being squeezed from every direction starting at our government right down to every service oriented business. I'm sick of being gouged by our government taxes, banks, utilities (have you looked over the long list of 'extra fees and taxes' on those bills??). We are required by law to pay federal, state and local taxes on money we pay taxes with! The financial game in this country is greed based. Compare CEO salaries and benefits with their workers. Look at how banks fee us to death. Look at the gas industry. They are raking in record profits, but are they thanking their consumers? No, they just bury us with $3.00 a gallon prices. Gas Prices? Just look at the cost of bottled water! Fifty cents for one pint of spring water is $4.00 per gallon!! Credit Card companies raise our interest rates anytime they want, pushing us consumers into deeper debt. They make it harder for us to pay off the balances, then report us as bad credit risks to the credit bureaus, which lowers our credit numbers. And how do the Credit Card companies react? They raise our interest rates again!!
I refinanced my home with the same bank, and although I was 1 month shy of a two year prepayment penalty, they still took $20,000 of my equity in the prepayment penalty anyway. I was told the prepayment penalty was there to protect a loss of profit over the two year period. Did they lose $20,000 of profit in one month??? Needless to say, they are no longer my mortgage company.
These kind of actions are anti-consumer and are on the verge of being illegal. I wish my family could make 25% on our money every month with the threat of raising our profits whenever we want!
Don't use credit cards. Pay with cash, because cash is what you can afford. Play the credit bureau game when getting loans. Force those banks to either give the 'best' interest rate or walk. We don't need to spend our retirement money or our kids college or inheritance on outrageous bank fees and taxes!!

My only comment is that once a person is fortunate to get a home, why doesn't everyone maintain the appearance of the outside of their home? Buying a home is a major expense and there is nothing worse than seeing homes with garbage, trash, junk, unkept lawns where the grass is dead and/or not mowed, dead trees/bushes, old vehicles that don't work, leaves that never get racked except for when the wind blows them to someone else's yard, etc. This effects the value and the re-sale value of homes. It's not just a matter of getting a home loan and you are all done...having a house means other responsibilities. Buying a house means consistent maintenance. If you don't want to do the work yourself, then hire someone to do it for you.

As an experienced mortgage originator, I can tell you that all types of mortgage loans can benefit consumers if the loan is used only under the right circumstances with proper education and full disclosure. Yes, we should crack down on lenders who are deceptive and assure that loan scenarios provide a tangible benefit. However, to eliminate loan programs across the board would actually hurt segments of the public and the economy.

When we were shopping for a mortgage last year it was a all-consuming process. We were first "pre-approved" through our realtor. We were glad to have the letter for the house-shopping part of the transaction, but knew this wasn't the loan for us.

Even though we had been saving for 4 years, our savings didn't keep pace with the price of housing. So with my "good" credit, my husband's "sterling" credit, and $20K down, we were offered an 80/15/5 loan with a balloon payment. We were told "don't worry, just refinance in 3 years."

We kept searching for the perfect house and the right loan. We checked books out of the library and asked questions, alot of questions. We hit paydirt with a traditional bank.

We were lucky. We had the time and resources to do the research for the biggest purchase we will ever make. I was able to make phone calls during my work hours. Often times people who work shiftwork or have retail jobs do not have the opportunity to use a phone during normal business hours. We didn't have other responsibilities like ailing parents or young children to tax our free time. While consumers should know better, sometimes their minds are on other things. They shouldn't be deemed bad people because they are trying to juggle family and work. You can't judge someone until you have walked in their shoes.

I found it very interesting of who blames who when it come to Mortgages and Loans. 99% of it falls on the backs of the Credit Cards and Banks. Interest that is 12% or higher is outrages. Any one how changes over 10% interest is outright a criminal. Blaming it on the borrowers that hard to believe, yet part of the blame does belong to them but it still hard to believe because for 15 years I have been trying to get a Loan to buy house but it has failed I was still stuck at my parents house because I have perfect credit sorry I don't qualify for any Mortgages. If all the rules they say they must follow and I supposedly qualified but when push came to shove I could not get one. It was same for trying to get a loan on car, took 12, yes I have perfect credit but no you can't buy a car. I ended up borrowing money from a good trusted personal friend. Still have to find another mortgage but it really bad when I have to borrow from friends to move forward in life. Of course new bankruptcy laws make it easier for the Mortgages and Banks to be more like loan sharks without getting into trouble and easier to jack up the interest rate from 13% to 24% overnight without due process or cause to force people into bankruptcy because people are not allow to write of any debt so either you live in fear and terror of the bank with 24% to 32% interest or in fear and terror of bankruptcy and lose everything.

Everyone makes this out to be a problem for all! It shouldn't be! It is the problem of the banks, people who got the loans, and those who speculated in realestate! The banks are trying to make a buck and a fool and his money are like pigs being lead to the slaughter house. If you can't read the paperwork yourself, hire a lawyer to translate it all for you. Never trust a lawyer who is getting a paycheck from the other side of a deal to look out for your best interest. This is not an issue for the Federal Government. This is an issue of people living beyond their means and the banks trying to figure out how best to make a buck. Let the housing market fall and it will eventually recover. Maybe between the loan industry sinking and the people who bit off more than they could chew the rest of America will learn a lesson in economics and Finance!

I'm noticing advice here from mortgage lenders and I am wondering why if they are educated enough to advise on financial situations, they aren't educated enough to spell check their comments.

This ad is on the homepage of MSN.com today!!

These "exotic" mortgages are geared to the people that want a home - a piece of the pie - that have never been able to have it. My daughter was lured into one of these mortgages by a broker "friend." When we (her parents) asked questions at the closing, we were quickly hushed by the broker. My daughter had no money for a down payment - they ask for an enomorous down payment these days. Neither did we when we bought our home in 1978. Even with 9% interest rate at that time, we had affordable payments. What's happened?? Most people that get these mortgages don't understand the legalize and sadly trust the wrong people. It's the American dream to own your own home. It should be illegal for these mortgages to have ever hit the market place. Luckily, her worrying-nag of a mother hounded her until we were able to get another mortgage. This wasn't overly easy to do - a lot of companies won't touch these 80-20/ARM mortgages.

oh my I just e mail to this site on Fri and now I read this. I received e mails from lenders and phone calls from the same. What a joke// This is what happens when you try to re fiance and you scores are not high enough your at their mercy. plus the fact they have all these lenders calling you Hfc and countryside called me I ask all these people who are calling me how did you get my number I thought I was dealing with one company. Plus they probably all are pulling your credit if possible. Was I Blind

It seems that all the responders are missing a very telling item.... Lowermybills.com is OWNED by Experian!! Seems odd that a consumer credit reporting company would be complicit with a company whose ripping consumers off.

I think they should only have fixed loans and lower the interest rate to make it affordable for individuals. The cost of housing is outrageous in a lot of areas. I also think that banks need to look more at ones expenses in order to calculate what a family can actually afford.

FOR ANYONE WHO ACTUALLY READS THIS: LISTEN UP. I am a mortgage professional and I can tell you that the new trend in this industry will be going back to FHA loans (backed by the Federal Housing Auth)This is now the ONLY ethical loan to sell or obtain. Rates are around 6.8%, which isn't the greatest, but it's fixed and stable. If you can fully document your income, are current on your mortgage, can keep your loan to value <95% and your ratios work out - this will be the best loan to get you out of your ARM. FHA loans are NOT based on credit scores - so I highly recommend this to those of you in trouble. Hope this helps.

If you vote for Ron Paul for President he will put a stop to this madness. Check out his history. He is a rare breed, a politician who is a man of his word. He is against the Federal Reserve and all this bullshit.

It appears that everyone is putting the blame for the sub-prime woes on the banks, mortgage companies or consumers. While there is fault and greed amongst all of these groups, nobody seems to be digging past the surface and analyzing where the most money was made and by whom. Most of the high flying sub-prime mortgage companies were using credit lines to fund the mortgages they were originating until such time as they had a suitable mass accumulated at which time they were cleared from the line via a securitization (mortgage backed security). Many of the credit lines were provided by Wall Street firms who also provided the securitization of the mortgage pool and the sold those mortgage backed secuities or parts thereof in the open market. Many of the purchasors of those instruments were mutual funds. The mortgage companies were generating mortgages with underwriting guidelines that would be set by the ultimate purchasor of the loans, Wall Street big boys. Did the Wall Street gurus really have a grasp on underwriting real estate loans at 100% loan to value to borrowers whose credit rating was below par and/or who could not prove their ability to pay? No. They had a grasp on the money they could generate when they sold the securities. The loan officer at the mortgage company was paid on a commission basis for the origination of loans. I would suspect that his or her income pales in comparison to the commissions paid on the sale of the securities. What Wall Street did was like throwing 100 lbs. of steak bones to a dog, he's definitly going to feast. Now, the end results of Wall Streets actions are yet to be truly felt. Yes, we know the real estate market has come to a virtual stand still, people are facing forclosure, etc. etc. What we have not yet seen is the full effect on the economy. The easy money loans artificially bolstered the economy due to all the money changing hands when people sold there house for more than it really should have and when non selling homeowners used the homes as an ATM in order to live higher than their incomes allowed. The unsuspecting investors in mutual funds(many IRA, 401K, etc.) may end up forestalling their retirements due to the losses that will be sustained by those funds.
Maybe it's time for Chris Cox to look deeply into Wall Sreets involvement and culpability.

FOR ANYONE WHO ACTUALLY READS THIS: LISTEN UP. I am a mortgage professional and I can tell you that the new trend in this industry will be going back to FHA loans (backed by the Federal Housing Auth)This is now the ONLY ethical loan to sell or obtain. Rates are around 6.8%, which isn't the greatest, but it's fixed and stable. If you can fully document your income, are current on your mortgage, can keep your loan to value <95% and your ratios work out - this will be the best loan to get you out of your ARM. FHA loans are NOT based on credit scores - so I highly recommend this to those of you in trouble. Hope this helps.

The way lead companies such as Lowermybills and lending tree work has nothing to do with the lenders or brokers that buy these leads. All leads are generated with adds that are not reviewed or approved by any of the lenders or brokers. However, if these lead companies provide the correct information to the people the people with real needs would be able to get real answers from the number of berokers and lenders that solicet their business. Also, the number of leads that these companies generate is directly connected to how they get the consumer to reply to something that is not out there. The lead companies that are now owned by these corporations have to show profits or otherwise they are gone, in order to achieve this the lead companies not only put out deceptive adds for consumers they also use deceptive sales techniques with the lenders and brokers and they leave both parties with really bad experinces.

Another example of the consumer failing to take responsibility for their own stupidity. Keep yourself informed and no one will take advantage of you. But behold, the government is about to bail out all the ignorant people. Bankers are not bad, Mortgage "Brokers" are bad (and I don't mean realtors), learn to distinguish the two. A broker is a "middle man" who has nothing to lose if you default. These are the same people you see closing their doors right and left as we speak. "Annualcreditreport.com gives you a FREE credit report on an annual basis from all three repositories. You only pay a nominal fee if you want to see your credit score. This website was highly publicized when it was released a few years ago.

Does it strike anyone else as ironic that 3cm above this headline is an ad for a home loan broker?

Nepkarel - are you truly shopping around, or you don't want to take the time? Example - cell phones. I bought one a couple years ago. At the time they were offering a free phone in exchange for a 2 year contract. I also had the option of paying $50-$100 for the phone, and have a 1 year contract. I opted to pay and take 1 year. The company - Sprint - tried really hard to push me into the longer contract. The 2 year was automatically written into their paperwork - I made them change it before I signed. Any time I dealt with Sprint, they would mention my 2 year contract, and I would correct them it was only 1 year, and they would say with surprise "oh, that's right" and act like I was weird. Once my year was up, any time I speak to them they offer me incentives to extend my contract - a gift card here, a credit there. I never bite the bait. I still have service, but its month-to-month and I can pull the plug any time with no penalties.

Salesmen, be it for mortgages, cells, or anything else, are schooled in the hard sell. There's always something extra they want to add onto it - an equipment protection plan, a credit protection plan, a longer contract with a tiny little incentive, you name it, they'll try to push it. If they are all excited about something they're pushing that you've never considered buying, you can be assured there's a commission involved.

Its become so prevalent you cannot call about any business without having a customer service person try to push you into one of these things. "No" is what you need to say, several times if necessary. Every single bill I receive, from my mortgage to my cable, is full of ads offering more stuff that I don't need. Just initial here, just cash that $10 check (and in doing so we'll charge you $169 a year for "discounts" so keep spending to take advantage of them!). Its disgusting, and this is the true way they're "competing" vs honest products.

Its hard to find honesty in the business world, and sometimes you have to settle for the "least bad deal". I guess the answer is to really research whatever you want to buy, find the best deal for you, and walk in the door intending to buy ONLY what you want, and nothing else they push. The fine print is major, they will try to slip all kinds of things in there as "standard" but with some forceful persuasion will take those things out, or lose the deal. The difference is to not be blinded by how quickly you want the product, or even be committed to that product or company, if the deal is not right.

There's a lot of psychology involved, and I'm sure any salesman has learned to spot the people with stars in their eyes begging to sign on the dotted line as soon as they walk in the door, as well as the ones who will ask a lot of questions and go over the fine print with a magnifying glass. They like the starry eyed ones because haste makes waste - and commissions.

the lenders lie. why did my payment go from 1600 to 2400 in 2 years? now i am going to lose my house, my car everything.......... the lender said dont worry i could refi in 2 years and get a lower rate before the payments went up. now lender works at a car dealer, said sorry when i asked him for help. the government should fix this problem by giving loans at 2-3% until things get better.

Having been a Financial Advisor for over 20 years, I have little sympathy for those that have gotten themselves into financal problems by buying more home than they can afford, using their homes as ATM machines or failure to read EVERY document they signed during their closing. I have even less sympathy for those who bought into the housing frenzy and started buying and flipping homes to see how much profit they could make.
Trust me, those who sought and then followed competent financial advise from advisors, accountants, bankers or attorneys are still sleeping at night. No one dragged you down the road you are now on or forced you to sign shacky sub-prime mortgages you are living with. If you go after cheap, easy to qualify for loans that you have not qualified for anywhere else there will be a price to pay - eventually.
You can't blame the government, your bank, the lender you got your loan from, MSN for running any ad or any one else. It has always been that you are responsible for any thing you sign!
In this country we have alwys complained about any kind of government retrictions on anything we have wanted to do. Lately, we have begun to insist that if and when we get into trouble by doing something stupid the government should be there to bail us out -so we can do it again and again.
By the way, I also feel that there should be no government intervention for the lenders who pushed the loans in the first place. Lnders and borrowers now need to work together in solving this crisis. Maybe then we can guarantee that it won't happen again.

These mortgage companies are killing the american dream of home ownership. If the government really cared about "their" people, they would address these scam artist mortgage companies. I realize someone who has less than perfect credit should have some kind of penalty, but giving someone with perfect credit a 6% mortgage and giving someone with less than perfect credit 13% mortgage is ludacris. The companies that are dealing with high foreclosure rates need to think what put them in that shape. If they had made a little money buy offering a mortgage for less than perfect credit at say 8 or 9% fixed rate, then everyone wins. They still make money and the credit worthy still get rewarded and people who need to work on their credit still can without the risk of losing their homes. Then when they prove themselves they can refinance at the prime rate. To me, this isn't rocket science.

I have a mortgage and good credit I pay 5.75 %. I never missed a payment. So just for the hell of it I filled out one of those online adds. I give the wrong name and email my address just to see this scam in action. For the same house and amount they came back with a 7year adjustable at 11%. What a scam good thing I really don't need to refinance.

The government is all about special interest, the rich and big business. They don’t give a dam about the average guy they just tell us a lot of BS then they don’t do jack for us when they get in office.

These mortgage companies are killing the american dream of home ownership. If the government really cared about "their" people, they would address these scam artist mortgage companies. I realize someone who has less than perfect credit should have some kind of penalty, but giving someone with perfect credit a 6% mortgage and giving someone with less than perfect credit 13% mortgage is ludacris. The companies that are dealing with high foreclosure rates need to think what put them in that shape. If they had made a little money buy offering a mortgage for less than perfect credit at say 8 or 9% fixed rate, then everyone wins. They still make money and the credit worthy still get rewarded and people who need to work on their credit still can without the risk of losing their homes. Then when they prove themselves they can refinance at the prime rate. To me, this isn't rocket science.

If you took the bait and bought more than you could afford with an ARM, then you should man-up and move into a home you can afford or adjust your spending to afford your payment. Most payments are going up a few hundred dollars a month for the average ARM. If that is the difference between keeping or losing your home, then you are way overextended and should get out before you experience a bigger financial crisis that ruins you. Living in an apartment till you can find a house that you can actually afford never killed anyone. Living beyond your means certainly could be the end of you in a money-driven society like ours.

The moral to the story is READ what you are signing. Yes lenders and brokers are misleading, but what business isn't when they want to get you in the door. Everything is disclosed is the Final Loan Documents and if you can't understand what it says, I suggest you consult a Lawyer. Ask a friend or neighbor or call another company to compare the loan your being offered vs. another one. The bottom line is the banks and brokers don't have a gun to your head when your signing and your all given a 3 day window to change your mind. If you are unhappy or confused don't sign.

Everbody wants to blame Bush HAH ha.. its raining here right now... i wonder if those chemtrails from airplanes created this... i betcha Bush made it rain again... darn he's so smart he has the ability to control everything.. so blame himmm but that Clinton guy... he was greaaat... ok then... go ahead vote for Hillary and watch our toilet flush faster... but you won't blame the Clintons... you'll always blame the bush... some people are gonna look back and blame Greenspan... we're just a country of gamblers... anyone who understands the GUTS of a safe Pay Option ARM with a fixed minimum payment from 1.25% to 3% for 5 years should be loving it!! as long as you pay all your interest by the end of year for the tax deduction.. that extra money should be spent well... and only people with great credit are allowed to get these loans... right now I have put many people into these pay option ARMS... I started them at 1.25% minimum payment for five years (with a 7.5% increase of the minimum payment each year) $499 X 7.5% = $37 the second year the payment is $536 and so on... 3 years ago, the rate they were being charged was around 5.75%... as the indices rose, they were slowly approaching 7%.. well, thats not going to rise forever... 2 months ago everyone was looking at "flight to safety" loans.. I had a client clear to close at 95% with a 7.5% interest rate (interest only).. as the next mortgage boom looms haha I pulled the deal. Her pay option ARM still has 2.5 years at the minimum payment option.. and she is only being charged 7.625%. That rate is now going to go down. She frees up 25,000 a year that goes to "safe" investments. Why give that to the bank>? then she pays her interest at the end of year. The neg AM is really positive principle accumulation (PPA) if done right. She is not over 100% CLTV either. Some areas of america did get hit on that though as overpricing got way out of hand. SO no, not everyone should even attempt to USE one of these loans. But a 30 or 40 even 50 year fixed loans are the predatory lending loans. Especially if a person may move in 5-10 years. See how much principle you really pay in 5 years... its a joke compared to total payments. Australia won't allow them. Anyone who is in the right situation should utilize these loans to their advantage instead of "thinking" they are safe on their 30 year fixed. If you don't have a 10 or 15 year loan, your getting raped by the bank. That should be looked at as predatory lending. The amount of principle and interest paid should not be such a wide gap int the first 5-7 years.. Oh yeah your balance goes way down after 15 -25 years... but we aren't all really thinking we know so much that>> screwing ourselves now by "feeling" safe is a good thing... well the banks are screwing us...not to mention the fact it was obvious to me after the first record setting mortgage rate boom that, we are going to see another ONE... YAYY and here it comes... don't get out of your pay option ARM if you have one.. When Japans economy got so bad, they had a 0% interest rate... we'll see 4.5% on a thirty year fixed soon... so get ready for the fun (unless you have bad credit) sorry... FRED THOMPSON FOR PRESIDENT HEY!!

ARMs made sense back in the 80s when the interest rates were up around 14%. Reverse mortgages can be good when used properly. The best advice I've seen here is to seek out trustworthy professionals. How do you do that? Well, I'd start by talking to my banker.

As long as real estate mortgage brokers (a fancy term for a salesperson) are paid on commissions and allowed to float your interest rates (not lock you in when you make a commitment) so they can benefit from the float gaining points, etc. things will go on as they are. I was once told by a mortgage office manager - hey this ain't rocket science but you sure can make a lot of money.

Why should the government help bail out the mortgage crisis when this is continuing to happen?

As long as real estate mortgage brokers (a fancy term for a salesperson) are paid on commissions and allowed to float your interest rates (not lock you in when you make a commitment) so they can benefit from the float gaining points, etc. things will go on as they are. I was once told by a mortgage office manager - hey this ain't rocket science but you sure can make a lot of money.

I have a mortgage and good credit I pay 5.75 %. I never missed a payment. So just for the hell of it I filled out one of those online adds. I give the wrong name and email my address just to see this scam in action. For the same house and amount they came back with a 7year adjustable at 11%. What a scam good thing I really don't need to refinance.

The government is all about special interest, the rich and big business. They don’t give a dam about the average guy they just tell us a lot of BS then they don’t do jack for us when they get in office.

It is really easy to blame the lenders and broker for all the problems in the housing markets. While I agree that guidelines over the last few years did get very lax it is also important to note that new home ownership is at the highest levels that it has ever been. It is really easy to say that a borrower that had credit problems don't deserve to purchase a home but that does not resonate with me because a lot of really good borrowers have had credit issues in the past for a multitude of reasons and they should not be penalized indefinitely for this. Ultimately it is not the banks or brokers fault that borrowers say yes and take on a mortgage they cant afford. Borrowers are required to sign a mountain of paperwork that is federally mandated before they can get that loan. If they just read it they will know exactly what they are getting into. If reading this information is not clear enough than the fault lies with Congress because they are the ones that came up with the guidelines of these forms in the RESPA act. I like many people took out a mortgage over the last two years but I read my paperwork and I know exactly what I was getting and if one day I fall on tough times and cant afford it anymore than it is my fault and not the banks.

I have no sympathy for those who did not do their homework and went with risky mortgages. A house is the biggest investment you will make in your life and being able to afford it up front is key! The mortgage companies are not the only ones to blame, the consumer who accepted these ludicrous terms are to blame as well! As P.T. Barnum said "there's a sucker born every minute"

Don't you think that the same company (experian) that handles your credit rating/score should not be able to buy companies that may appear on that very credit report? Doesn't that sound like a conflict of interest? Can you say 'crook'?

Everytime I see the Countrywide commercial on TV, I do not give them a thumbs up, I give them my middle finger. For a mortage company that was close to bankrupt and had to borrow two billion from Bank of America, I can not see how they could give a no closing cost fee, no credit check fee, no appraisal fee, and no refinance fee to anyone when they had to lay off 4000 of there own staff. What a sham, scam and a flim-flam of a mortage Company.

We've been duped, swindled, bamboozled and cast aside to pave way for the pilfering of our natural resources, understanding of community and common sense by corporate mmongers. We've turned a blind eye and stepped into our own inner world of delusions through “reality TV”, over consumption, false riches (lottos and game shows) and soul numbing video games. Wake up America!! When the Sleeping Giant rises, we all shall fall.

Everytime I see the Countrywide commercial on TV, I do not give them a thumbs up, I give them my middle finger. For a mortage company that was close to bankrupt and had to borrow two billion from Bank of America, I can not see how they could give a no closing cost fee, no credit check fee, no appraisal fee, and no refinance fee to anyone when they had to lay off 4000 of there own staff. What a sham, scam and a flim-flam of a mortage Company.

I don't doubt that the things you write about are true, but, like others have in this space for the last several stories, I'm wondering why it's called "Red Tape Chronicles". This may highlight stupid behavior, but it's not red tape. Nor is it an internet scam or an example of governmental abuse.

I live in a boom bust real estate area and operate a national oddity – a manufacturing company with a domestic location. I have seen 4 real estate booms in my working life but none as wild as this one. Why was it supported for so long ?

It seems that the majority of the comments focus on a few very important things. 1.) Can they afford the house within the context of their income and their existing debt? 2.) What happened to the credit rules and government supported mortgage companies that used to be in place prior to 1997? 3.) the greed to get rich quick is the downside of our capitalistic society.... with this said I believe that this was allowed to flourish because the system of mortgage selling and buying become a way to support hedge funds, stock market, equity capital companies, foreign debt etc. It’s just another version of the Dot Com bubble and all of the fall out from it. How can a bubble like that exist in a country that has exported many of its higher paying middle class jobs and the wages for the existing workers have struggled to even rise with inflation. At the same time the home values shot up 20% to 40% depending where they are located in the US. This does not balance. Are we such an economically weak country that we need these gimmicks to appear to be economically sound? If the people think we are sound then they feel good and they do not question as much many of the things that are going on. Apathy has been the standard for a long time.

May I say something? While this ARM mess was still cooking on the stove but hadn't yet boiled over, I needed a mortgage. An ARM mortgage was cheaper than a 30 year fixed and I wondered why. Since I can read (apparently a few million folks with ARM mortgages cannot)I read the details for both types and realized the ARM rate would be a big surprise after the teaser period, so I opted for the 30 fixed which initially had a higher rate but was guaranteed and I could afford it. If I had been too danged dumb or lazy to read then I suppose I'd be whining now with all those other crybabies. What those folks don't seem to realize is that they really have nothing to lose. They have no earned equity or down payment to lose. The rent they used to pay was probably higher than the ARM payments they've been paying so they're ahead of the game. I don't feel like my tax money should reward their elective ignorance.

I truly hope there is no bail out for all you gullible people that got yourselves into this mess. I'm going about buying my first home the old fashioned way! what a pain now that in the broad scheme of things it is a few that have ruined it for the many. My taxes are high enough without having to pay for you who do not have the common sense to read b4 you sign!!!!!!! Taking a quote from Carlos Mencia "you might be a de de de"

Yes! What happened to Lending Tree being mentioned. We have some debt that we were trying to consolidate and we got in touch with a mortgage brokerage firm through them and something did not seem right! After all was said and done, we were informed about $6,000.00 in closing costs and then they told us that they would have to finish our total approval later on because of this whole sub-prime publicity, they couldn't get anyone to look at our application.

This is just NOT right!

EASY,IF YOU STRECHING ALREADY BUYING A HOUSE AND YOU CAN BARELY AFFORD IT, THEN WHY THE F--------CK ARE YOU TRYING TO GET THE BIGGEST HOUSE ON THE BLOCK? WITH CAR PAYMENTS AND CREDIT CARD BILLS??? BUYER BEWARE!!! YOU SIGNED THE LOAN DOCS YOURSELF RIGHT ? YOU SHOULD KNOW WHAT YOUR GETTING INTO !! YOU SEEKED OUT THE LOAN YOURSELF !!!! NOW YOUR LOSING YOUR HOUSE AND ITS THE LENDERS FAULT? ARE YOU EVEN READING THE LOAN DOCS ? ARE YOU UNDERSTANDING WHAT YOUR GETTING INTO ? ITS ALL ON YOU ! AND NO ONE ELSE !!! all you ignorant people refied and pulled out all you equity and purchased cars that lose there value or just blew it on junk now your crying !!! wheres the $$$ money now ??? now your rate is going up ! you should have got on a 30 year fixed or sold it while at its peak and made out like a bandit !!! but your stupid and now look !!! im soo freakin' sick about hearing about this junk everywhere you look,internet,news ,local newspaper and then you have every jackazz talking about and having there stupid opinnion that doesnt mean jack !!! its not dooms day people this happened in the 80's when the rates skyrocketed ! do your self a favor if your thinking of buying a house ,unless your making big bucks ,and you got money in the bank .... dont even think about buying a house go rent !!!!! its not worth the risk for you !!! mainly because you will not do your homework on the biggest purchase in your life .

Does anyone realize the fact that MSNBC.com allows them to advertise on this site? Unreal! It's like saying "Hey's this is scam, but we'll still take their monry for ad space".

The lenders purchase these "leads" from Experian. The blame for the deception should fall on the vendor: Experian. The vendor does what ever they can to generate mortgage leads.
The consumer has to start taking some of the Blame in the current downturn of the Mortgage crisis, the consumer knows what they can afford, they know that their house may not be worth X amount of dollars, they also know how much money they make. There is no reason for anyone to ever say they did not know they were on an ARM product. Every loan is closed with strict RESPA guidelines. The mortgage business is and always will be a cyclical business, this down turn is nothing that we have not seen in the past. The current market needed to slow down, we needed lenders to go out of business, it is the industries way of tightening its belt. If the Housing market would keep going it would get to the point where no one could afford a house, Homes cannot continue to appreciate 15 to 20 percent each year. We are in the midst of a downturn, there is light at the end of the tunnel. We are already seeing it in the industry... As the economy slows down the interest rates will drop and we will see a whole new wave of people looking to refinance their homes.

The solution must lie somewhere between Caveat Emptor and passing laws against specific kinds of loans. One comment said that ARMs should be outlawed, but some loans rates adjust at reasonable levels with caps on how much they might increase. Another said that everything but a 30 year fixed should be outlawed. Come on people, a variety of terms helps the consumer find the loan that works best for him or her. Not all ARMs are deceptive or bad and, not all terms beside 30 year fixed are a bad deal. I certainly do not condone some of the currently accepted practices in the mortgage loan industry, and government regulation and oversight are important. But, the borrower must also take the time and energy necessary to fully understand these loan contracts before signing. Not to mention, if a perceived endorsement by Oprah Winfey is enough to make you sign a mortage for tens or hundreds of thousands of dollars without understanding the terms, you probably shouldn't be borrowing at all.

The dream of being a home owner is something that most people want. Why hasn't a nation that is so rich in resources provided programs to allow this to become a reality, instead people venture into these loans hoping that down the road things will improve and that they will be able to afford the payment. Wisdom was not present at the time of signing. Lets hold seminars and classes to educate instead of ridiculing.

My husband and I have been trying for years to get a mortgage. We have excellant rental history. Never late, almost always paid early. Why cant the mortgage companies look at it that way? Why do they have to make it harder than it already is? And now the credit companies have their hands in it to. How frustrating to know that my husband and I will probably never be homeowners.

It is interesting to read all the comments made about this topic. No one in this country can borrow money without being an adult and when you make mistakes you suffer the consequences. If you speed you get a ticket, if you break the law you go to jail, if you dont pay your bills you loose your stuff. Stop feeling sorry for your self and do something about it. Get a second job, get a third job, talk to your lender (if you really think they want your house when the bottom is falling out of the real estate market you are a fool), do what you have to do to be successful. When the market rebounds if you can not afford your home for Gods sake sell it and buy something that you can afford. We do not need the government to make more laws we need the people to be more respondsible. Creative financing is out there for investors not for home owners. You have to do smart things if you are going to be smart people. And when this is all over and home prices start to go back up remember real estate, like everything else, runs in a cycle and this cycle will come back again one day no matter what the government does.

I have been a mortgage/real estate closer for 17 years and have seen a huge change in the types of mortgages taken out by consumers. I know the borrowers are not doing their homework. Not shopping around. I still believe if you shop the market and include your local lender, a mortgage broker, and a leading mortgage company you will be able to make a more informed decision and may be tipped off to the downside of certain programs. Shopping the market doesn't cost you anything unless you fail to do it. An informed, educated buyer will most likely avoid a lot of the pit falls of a bad mortgage.

I have done thousands of closings over the years and watched as consumers have equity stripped their home to pay for a life style they can not afford and over time they end up in these bad mortgages and can't find a way out. They way out is to live within your means and not treat your home as a cash cow. Most borrowers are one hiccup away from missing a mortgage payment. Car breaks down, doctor bill, etc.....
We don't have to keep up with the Jone's, modify your life style. Simplify

We have to look out for ourself. We can't depend on the government of the mortgage originator to do it. Competition in the marketplace is a good thing, use it to your benefit.

My last note, I get tired of hearing borrowers say I didn't know my loan was and adjustable, neg am, or had a prepayment penalty. As a closer, I know I am very diligent about going over those things. The borrower is taking the attitude of I will deal with that when the time comes and not taking the time to figur out what the terms really mean to them.

There are good loan officers out there and bad ones.
Shopping around will help find the right one.

Anytime the credit bureau is at liberty to sell other people credit scores to anyone that has money to buy 700 to 800 credit scores. The people with sufficient scores are willing to sell their scores to strangers, whose problem is that? Predatory lending has ruined the American dream. Explain to me what the country built off? Sure isn't integrity!!! Crooks are everywhere. So only in GOD WE TRUST in this country!

I am a Senior Loan Officer in Louisville KY and have had experience with LOWERMYBILLS and Lending Tree as well as NEXTAG. I can tell you that those web sites do more harm to the consumer than good. For starters, they charge mortgage companies a VERY large sum of money for the "leads" and it only makes sense that the mortgage company has to charge extra fees to cover the cost. I admit, we tried it for a while but it was dropped because what they "SOLD" us was not what we got.

So, now I run an office that only deals with referral business and it is GREAT to get back to the way this business should be.

If you apply for one of these things online, prepare to be lied to (by everyone) and be ready for SEVERAL phone calls a day by young kids who have never had a mortgage or even owned a home....trust me...stick with the guy or gal who you can sit in front of or talk to at the grocery store after your loan closes.

I don't know why we're blaming the lenders for the mortgage mess. We should be blaming the consumers. What happened to the America I grew up in. . .you could do basic math (if easy multiplication doesn' add up to the sale price of the house, there's a "catch" somewhere) and you were responsible for your actions. The loan details are in the paperwork.

I think that the advertising should be stopped.
I never, never follow advertising. For me that is a product which does not go successfully and lender or manufacturer need advertising.

Another words, do not bay any of those.
I wish some better regulation for advertising because
they are silly and bad.

Anytime the credit bureau is at liberty to sell other people credit scores to anyone that has money to buy 700 to 800 credit scores. The people with sufficient scores are willing to sell their scores to strangers, whose problem is that? Predatory lending has ruined the American dream. Explain to me what the country built off? Sure isn't integrity!!! Crooks are everywhere. So only in GOD WE TRUST in this country!

How about upfront disclosure in the ads? "If you make the minimum payment, you will owe more than you borrowed". Some of the largest loan companies doing business these days are not only using these ads, they are also paying entities like MSN to promote these products. Bottom line: let's all quit pointing the finger and take responsibility for our OWN actions. If you sign papers for an ARM loan, the first letter says it all...."ADJUSTABLE". The rate is going to adjust, simple as that! You sign no less than 3 disclosures in our state that say "ADJUSTABLE RATE LOAN" in big bold letters right at the top of the page. Though foreclosures are at an all time high, so is home ownership and a high percentage of the families who got adjustable rate loans are doing fine. I guess those numbers just don't make good headlines do they?

If the Department of Real Estate in California awarded individuals for reporting false advertisemnts with respect to mortgage rates quoted on their ads I would be very rich. I see more than a handfull of false advertisements with regards to mortgage refinances in hispanic magazines. The ads are ridicoulus!! They state rates without stating an APR which according to the DRE (Department of Real Estate) is a violation of their lending laws.

Anytime the credit bureau is at liberty to sell other people credit scores to anyone that has money to buy 700 to 800 credit scores. The people with sufficient scores are willing to sell their scores to strangers, whose problem is that? Predatory lending has ruined the American dream. Explain to me what the country built off? Sure isn't integrity!!! Crooks are everywhere. So only in GOD WE TRUST in this country!

At some point in all of this mess the borrower needs to take some responsability. No mortgage banker or broker has ever signed a purchase contract forcing someone to buy a home.

How about upfront disclosure in the ads? "If you make the minimum payment, you will owe more than you borrowed". Some of the largest loan companies doing business these days are not only using these ads, they are also paying entities like MSN to promote these products. Bottom line: let's all quit pointing the finger and take responsibility for our OWN actions. If you sign papers for an ARM loan, the first letter says it all...."ADJUSTABLE". The rate is going to adjust, simple as that! You sign no less than 3 disclosures in our state that say "ADJUSTABLE RATE LOAN" right at the top of the page. Though foreclosures are at an all time high, so is home ownership and a high percentage of the families who got adjustable rate loans are doing fine. I guess those numbers just don't make good headlines do they?

...A Must Read.
The Federal Open Market Committee (FOMC) is the most important monetary policymaking body of the Federal Reserve System. It is responsible for formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments. The FOMC makes key decisions regarding the conduct of open market operations—purchases and sales of U.S. government and federal agency securities—which affect the provision of reserves to depository institutions and, in turn, the cost and availability of money and credit in the U.S. economy. The FOMC also directs System operations in foreign currencies.
Monetary Policy Role
The primary responsibility of the central bank is to influence the flow of money and credit in the nation's economy. The Federal Reserve Banks are involved in this function in several ways. First, five of the twelve presidents of the Federal Reserve Banks serve, along with the seven members of the Board of Governors, as members of the Federal Open Market Committee (FOMC). The president of the Federal Reserve Bank of New York serves on a continuous basis; the other presidents serve one-year terms on a rotating basis. The FOMC meets periodically in Washington, D.C., and determines policy with respect to purchases and sales of government securities in the open market, actions that in turn affect the availability of money and credit in the economy.

Second, the boards of directors of the Federal Reserve Banks initiate changes in the discount rate, the rate of interest on loans made by Reserve Banks to depository institutions at the "discount window." Discount-rate changes must be approved by the Board of Governors. All depository institutions that are subject to reserve requirements set by the Federal Reserve—including commercial banks, mutual savings banks, savings and loan associations, and credit unions—have access to the discount window.

Each Federal Reserve Bank has a research staff to gather and analyze a wide range of economic data and to interpret conditions and developments in the economy. This research assists the FOMC in the formulation and implementation of monetary policy. It also contributes to informed decision making by the Federal Reserve Banks in bank supervisory matters and other areas. Most Reserve Banks publish a monthly or quarterly journal devoted to basic research and analysis of current economic issues in their District.

Teaser Mortgages, Exotic Mortgages, and Subprime Mortgages are another screw job to Americans. Real Estate Agents, Builders and Mortgage companies play the game together. Americans losing their homes or having their credit worthiness affected by way of deceptive practices should not be a part of our culture. Americans should respect other Americans and avoid harming Americans financially. We are taught to create wealth, but we should not be screwing up people's lives doing so. How many of the Professionals involved go to Church, their child's soccer game and to networking meetings without any remorse? Has Corporate American lost it's conscience?

As a mortgage broker dealing with the changed market place, I still have clients asking about these stupid deceptive loan officers they see. I tell them no its bad and they go somewhere else for the same loan and they foreclose on their homes and whine that they are "victims". I am amazed how little people ask questions or are critical of what they read if they do read it at all. But again, these are the same people who fall for the stupid email scams and give up their own life savings. Until people in this country take responsibility for their own actions, we will fail as a nation

I blame George Bush for the mortgage mess we're
in today.

I am glad the mortgage companies and banks are getting screwed. They have gotten us long enough. I got messed over by sub prime lenders and even though I was never late with a payment, I could not get the fixed rate after 1 year that I was promised. They kept selling my mortgage. Well, I took what equity I had out to try and stay afloat since my arm rate kept going up. Finally, I was upside down in the loan and had to go into foreclosure. I'm glad the banks are getting what they deserve. I'm sorry so many people have been duped by these companies.
Smarter Now!

It has been said, if people spend within their means, the economy would implode. Lenders had to produce other "prgrams" , as they call them, becuase in many areas a 30 year fixed meant you needed 3 incomes. Thats the real problem over the last 30 years, imcomes have not kept up. If you look at just the last 6 or 7 years, homes doubled in some areas, yet incomes, for college grads anyway, were down 10 percent since 2000. So, how does one afford a house in such a scenario? Yep, interets only, 3 year arms, etc. The product of all this, ironically, is overvaluation. None of these homes are worth 600K, but people were stupid enough to pay it, and even more so to loan it. Uncle Sam should not have to fix this. I remain a renter.

BTW: I am getting sick of the commentors here that say that as a customer, I should pay more attention to what I buy. Of courese, people need to understand what contracts engage in, but that can only happen when contracts are written in such a way that they CAN BE understood. Unfortunately, this is often PURPOSELY not the case.

To those who say I should bring my business elsewhere, I ask: where can I get a cell phone WITHOUT a infinite contract? Where can I get a morgage that's honest? The problem is not that customers do not want decent products, the problem is that due to the many deceptive products, customers can not find the honest products anymore.

In other words: competition only works when companies actually try to compete.

Odd. MSN features a story reaming them, then sells adspace on their front page for those same ads from those same companies? Looks like their profiting from both sides.

Perhaps MSNBC would be wise to pull these ads from its website! Oh, whoops! I'm sorry. Then they would lose all that ad revenue. Silly me! What was I thinking?!?

As you see there are alot of people from Texas commenting on this report. And there is a reason why. Texas has very liberal laws as to what can and can't be done by lenders and sellers of all kinds. So many people tend to get burned by false and deceptive means employed by those companies here in this state.

I will say this, anyone willing to get into any kind of adjustable rate mortgage is being burned. There is no exceptions. All lenders use this type of practice because they KNOW a majority of those getting them will eventually foreclose. By doing so the property is then again sold and the process continues. It effectively works like rent property. The banks in the meantime are making away with millions. The same is true for car loans, and other loans. It's one of the banks number 1 ways of making money. They resell the same property and vehicles over and over again to new people squeezing the life out of unsuspecting consumers who in this country tend to be lazy about researching things before leaping headfirst into them.

I won't do it. ARM's are simply a way to burn the customer, and they know it. So, I'll keep on with cash bought items I don't have to worry about payments for.

The funniest thing is not what's happening to people, but the banks. They scream and cry and moan about how hard it is for them right now, but the guy's at the top of these companies...are laughing it up. If the government assists they make money, if they don't and everyone forecloses, they resell and make money. They are going to win no matter what.

Jonbad
I think it's a bit over the top to say Let's put Experian out of business. I work for Experian. They are no different than any other company in America. On the credit side we are regulated and we are leaders in mainting privacy and following the law. You won't find any private data being left on someone's PC on the front seat of their car.
Anyway... If people are dumb enough to fall for those ads, they probably have a closet full of weight loss pills and hair growth remedies.

I have 37 years experience in the mortgage business. I’ve been an area manager responsible for overseeing an average of $100 million per month of retail mortgage fundings over the past 14 years, NONE of which were OPTION ARMS. Credit scores and subprime designations are made up of many factors, one of which is an extremely important indicator that the applicant has a much higher risk of default; over extension of borrowing, especially maxed-out credit cards. Pay off your debts and stop borrowing every penny available to you and your score will immediately improve. Credit scores are meant to measure risk, not just past performance paying your bills. If you have a credit score of 600 or less, you are definitely a high risk borrower and should not get the same terms and conditions available to someone who does not max-out 6 or 12 credit cards and every bit of credit available to them. If you have a slew of multiple derogatory credit reverences and multiple late payments including repos and defaults, they belong to you, there not mistakes and they weren’t put there mysteriously by some lender boogeyman. As for those who took on risky option ARMS at 1% start rates; did you think this was going to last forever? DUH! Do you think you should be living in a $300,000 home with a $35,000 per year income? Don’t you think you should have a little skin-in-the-game by making a decent down payment; let’s say a minimum of 10% to 15%, or should you expect to have everything handed to you by the hardworking taxpayers just like most of the things in your life? When you borrowed every penny that a lender would give to you did you ever wonder what the ADJUSTABLE RATE part of the mortgage meant? Did you at least make an attempt top read the disclosures and loan descriptions given to you at application, approval, and again at settlement? Did you hope and expect the 1% start rate to go down but never up? Did you think it was more important to buy a new plasma TV, IPods, Hummer, Harley-Davidson, $100 basketball shoes or bling and things rather than pay your mortgage on-time and save for a rainy day? What exactly were you thinking? No, really, I’m serious, what the H**L were you thinking!! Why am I have to pay for your bad behavior and mistakes once again?

how about we go back to people excepting responsibility for their own dimiss. You used to need a 20%down plus closing cost to buy a home you could afford. Now you need nothing so you buy a home 3 times what you can afford then my tax money to bail you out. It,s all someone elses' FAULT.

I have 37 years experience in the mortgage business. I’ve been an area manager responsible for overseeing an average of $100 million per month of retail mortgage fundings over the past 14 years, NONE of which were OPTION ARMS. Credit scores and subprime designations are made up of many factors, one of which is an extremely important indicator that the applicant has a much higher risk of default; over extension of borrowing, especially maxed-out credit cards. Pay off your debts and stop borrowing every penny available to you and your score will immediately improve. Credit scores are meant to measure risk, not just past performance paying your bills. If you have a credit score of 600 or less, you are definitely a high risk borrower and should not get the same terms and conditions available to someone who does not max-out 6 or 12 credit cards and every bit of credit available to them. If you have a slew of multiple derogatory credit reverences and multiple late payments including repos and defaults, they belong to you, there not mistakes and they weren’t put there mysteriously by some lender boogeyman. As for those who took on risky option ARMS at 1% start rates; did you think this was going to last forever? DUH! Do you think you should be living in a $300,000 home with a $35,000 per year income? Don’t you think you should have a little skin-in-the-game by making a decent down payment; let’s say a minimum of 10% to 15%, or should you expect to have everything handed to you by the hardworking taxpayers just like most of the things in your life? When you borrowed every penny that a lender would give to you did you ever wonder what the ADJUSTABLE RATE part of the mortgage meant? Did you at least make an attempt top read the disclosures and loan descriptions given to you at application, approval, and again at settlement? Did you hope and expect the 1% start rate to go down but never up? Did you think it was more important to buy a new plasma TV, IPods, Hummer, Harley-Davidson, $100 basketball shoes or bling and things rather than pay your mortgage on-time and save for a rainy day? What exactly were you thinking? No, really, I’m serious, what the H**L were you thinking!! Why am I have to going to pay for your bad behavior and mistakes once again?

LoweMyBills is a sham, I, as a mortgage broker have bought leads from companies just like that, sometimes paying $40+ per lead. I would contact the people only to hear that they were promised $150,000 loan at $499 a month (example). So not only are the consumers mislead, but so was I who had I known they had responded to a leader like that, I would never have purchased the lead, knowing those are impossible.

First of all no mortgage can be completed without signing an application. If you don't bother to read what your getting into and then complain when the rate rises that's your own fault. Buying a home is the largest purchase most people make and their most important long term investment. Read what you sign and if your too stupid to do that rent an apartment. Second of all subprime borrowers don't qualify for the type of loans that your talking about - (neg am,deferred interest,option arm) because you have to have good credit, equity in the home to offset interest deferred (which you dont have to do because there are multiple payment options), and a good loan to value ratio. Most subprime borrowers are lucky to even own a home because they have made poor financial decisions already, much less all three of those factors. They are in different types of loans that adjust differently and because millions of Americans thought they were real estate gurus overnight, millions of Americans are paying the price. Oh and another thing quit blaming advertising - if you can't ignore it then your just another American bred homo sapien shopper sheep. Just because your neighbor buys something dosen't mean you have to.

The 30 year fixed loan is not the best for all people. It was first instituted because of increased prices that made shorter term loans too expensive.
The problem with that & all such ideas is that people don't care how much the house costs, all they care about is the monthly payment. Any new loan that reduces the monthly payment eventually raises the price people will pay for the house & that's what the 30 year loan did. I had a 15 year loan on my house.
The payment was a bit more but the interest rate was lower & I paid a whole lot less by the time it was paid off.

When I first decided it was time to buy a house I did my homework and figured out what I could afford, and the maximum loan I would be willing to take on. To get preapproaved before I started looking at houses, I began with Lending Tree, only to be told that the majority of the lenders they dealt with were not interested in making loans under $100,000, or fixed mortgages, so they had no deal for me.

So I kept shopping. A year later I am in a $63,000 3BR 2BA, with 20% down, fixed 30 years at 5.88%, and payments less than the rent I was paying. Its a livable "fixer-upper" and I intend to stay here, not flip it.

I watch on TV how people are spending 3 times that for less house, and I can't figure out why. I also don't get why all this TV programming does so little to educate anyone - all they discuss is the price of the property - not how the buyers arrived at the figure they decided they could afford. Other shows deal with extensive renovations all in the name of fashion - the kitchen feels "outdated" or she doesn't like her kitchen colors - then perfectly good cabinets and counter tops hit the dumpster so she can brag about her "taste" (at a very high cost). Not a word about how these people can afford this and what financing they got to get these things. In between these shows are ads at how you can go to Lowes or Home Depot and pay no money down (then get socked with 21% interest rates a short while later).

People are shopping backwards for homes and improvements on the homes. They see the product first and then creatively finance the way to get it. The first thing, the main thing, is to make a budget and figure out what you can afford! Then stick with it and refuse to be pushed any higher, even by your own desires. Refuse to deal with lenders who don't think you want to borrow enough! Refuse to even look at properties above your carefully decided figure. Ponder what you need vs what catches the eye if you are hankering to remodel. Will marble counter tops change my life - I doubt it! The payments on them certainly would, though.

And yes, I believe advertising for ARM's should be banned completely. The few they would benefit will always be able to find them somewhere. I am sick of all the candy dangled in front of the consumer - the taste of that candy and the cost of that candy is often very, very bitter, no matter how fine it looks.

What gets me with all this mess is I, a smart consumer with great credit, a low interest rate, making more-than-minimum payments on MUCH less house than the bank told us we could afford, is now facing lower equity/slower appreciation on my home because of all the foreclosed or "fire sale" properties for sale. They got themselves into a mess, but it not only affects them. It affects ALL of us.

Just to let you know the goverment is doing something. Any of you that are in trouble with ARMS the goverment just did a amazing thing with FHA they created a program that if your in a ARM and and could afford the payment before it ajusted and now cant and have recieved lates so you dont qualify for a better loan, now you can. I hope this info helps some people out there.

The Government should step in regulate false advertising ,on all deceptive adds and punish these mortgage lenders, also they should make them add a disclosure statement of the actal Interest rates and the type of loans they are offering to the public

Nobody ever went broke underestimating the intelligence of the American people. - P.T. Barnum

Jeremy Burgen, from Kansas City, is the only one who gets it right. Bottom line, when you buy ANYTHING, you should do your homework, and find someone that you can trust to help you with that transaction. Did the governmen bail you out, when you paid too much for that Hummer you bought, after you took the mortgage loan out? Did you not realize that you would have to pay for all that namebrand furniture you bought with your credit card. Did you not realize that you would have to pay back, with interest, all those worthless items you have filled your house with. Bottom line, take some freekin responsibility for YOUR actions, and YOUR life. Hopefully, you don't have any children, who will learn, just like you have, to blame EVERYONE else, for ALL your problems, instead of looking in the mirror. Americans always want to pass the blame. Looks like the Democrats have taught you well.

My problems were not caused by non-payment or falling behind. They were caused when my mortgage was purchased by a group led by Wells Fargo and First Boston - Credit Suisse. They contracted the management of their mortgages to a company called Fairbanks Financial, now known as Select Portfolio Servicing (SPS). The first month after the mortgage was purchased, SPS notified me that the payment had not been received (It had gone to the original lender). This was my first inkling that the mortgage had even been sold.

Over the next three years, SPS insisted that I owed late fees on that payment, plus other penalties, until the amount in dispute was over three times a monthly payment. Then they made it more difficult to pay...they began by refusing to accept online or phone payments, then returned a certified mail payment, and eventually refused to accept payments by bank wire and Western Union. They never gave a reason.

We went to foreclosure and SPS even lied in court, claiming that I had refused to make payments. I was able to prove otherwise. Things degenerated to name calling and threats, and they even had a change to another judge who barely took the time to hear my side of the case. Fortunately for society, that judge was voted out of office last year.

Eventually I lost my job due to the time I'd taken off to fight them and exhausted my financial resources to the point that I could no longer afford to fight back. The whole thing cost me my house, about $10,000 in legal and court fees, and just about everything else I'd worked for over 25 years.

I truly hope that the ownership and management of SPS, Wells Fargo, and FBCS all rot in Hell.

I am tired of hearing how Mortgage brokers, banks, and lead companies are the reason for the problems in the lending industry and the housing market. First of all lowermybills.com is a great lead company that provides good solid leads of people that are looking for financing. The add is true 145k loan for $499.00 a month. That is a true statement. You can pay $499.00 a month a make an on time payment every month and you will not be late on your mortgage. Of course you are not paying the full interest on the loan. You have to be retarded to not understand with that low of a payment that you will go backwards on the loan. If it weren’t for uneducated people like you who wrote this article these programs would still be available to the consumer. Instead there is only a select few lenders how still offer it with good pricing and it is very hard to get the loan to close because the have tightend up so much on the guidelines. The neg. am loan is and was the best loan on the market for any consumer if educated properly. It's the job of the broker and the banker to fully educate the borrower on how the loan works. If the consumer follows the plan they will come out much better with a neg. am loan then a 30 year fixed rate hands down. The problem is they don't always follow the plan. So blame it on the broker, the bank, or the lead company right. That's bull____! Educate yourself on how the neg. am loans can benefit you or a consumer before you tear it down, and just to let you know the neg. am loan is not a subprime loan it is a conventional loan. That means in order to get the loan you have to conform to the governments guidelines to get the loan. Foe example the best way to use this loan is: Let's say you have a home worth 500k and you owe 100k. That means you have 400k of equity sitting there doing nothing. You borrow up to 80% of the value of the home. That would leave you with 300k cash out at closing. You take that 300k and pay off all high debt credit cards and the rest goes into a very safe side account where you are guaranteed to not lose any of the principal balance your only risk is not gain a rate of return. For example there are many savings accounts that are paying close to 5% right now. The best thing to do is to speak with a financial advisor and they will point you in the right direction of what to do with the money. Here is the best part. If you pay the neg. am payment to the bank you are covered and you will not have a late payment. If you take the difference of the interest only payment and the neg. am payment you can add that to your side account every month which means you are not going backwards on the loan you are simple diversifying the payment by paying the min. payment to the bank and the rest goes into the side account. It is called creating arbitrage. You borrow money from the bank and you earn = to or more than what you are paying monthly to pull the money out. Because of people like you consumers who new how to use this loan and brokers who new how to educate people on how to use it can't becasue they are no longer available to the consumer. Home owners need to quite blameing people for there f ups and start poiting the fingert at themselfs. For those home owners that were not educated properly by there broker or the banker on how the neg. am product works well that is a different story.