Mortgage Lenders Acting Stupid – Again? Still?
I guess I shouldn’t be, but I’m just stunned at the stupidity of mortgage lenders. It turns out that the industry practice is to offer mortgage relief to borrowers who are in trouble, missed several mortgage, but not to those who can carry the load.
Let me get this straight. If I make my payments in-full and on-time I have to abide by the sub-prime mortgage agreement I signed, but if I miss my payment (industry standard 3 months running) I can get my loan re-worked. According to the WSJ of 11/3 on page B1 that is correct. Stupid, no. Calculating, yes.
So, the mortgage industry rips-off those who abide by their agreements and rewards the slackers. What is my incentive to live up to my agreement? None.
What the mortgage service companies are trying to do is wring the most money out of the sub-prime borrowers before they have to cave on the loans. They are counting on the sub-prime borrowers lack of information or naivete to get them to pay out more than the could. Who is more likely to get their loan reworked the speculators or is the single mothers? How do these men shave in the morning? How do the women put on their makeup?
Let the borrower beware.