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My pleasure fearless kid
My background is in the credit industry so I love to "find out their tricks"
Your friend is lucky to have someone "watching their back"
The person who brought this whole thing up, she's a really nice, church going lady, does volunteer work, etc., but I'm going to have to break the bad news to her, the thing is that she thinks she knows everything and for sure would take offense to this
She's actually depending on this deal so when she gets her referral cut, she can improve her wardrobe, lol. I'll refer her to this forum or just copy/paste the comments. Thanks again!
The person who brought this whole thing up, she's a really nice, church going lady, does volunteer work, etc., but I'm going to have to break the bad news to her, the thing is that she thinks she knows everything and for sure would take offense to this
She's actually depending on this deal so when she gets her referral cut, she can improve her wardrobe, lol. I'll refer her to this forum or just copy/paste the comments. Thanks again!
-Angel
Hmmm... nice, church going people that depend on referral fees from crazy financial schemes to buy fancy clothes don't seem so nice to me. Seems to me like someone else just looking out for their pocket book and not the best interests of the people they are advising.
Too many people in our business that "depend" on the next check for their luxury car payment or vacation. Commission breath sure does stink!
wow angel somehow I miss read something
your family member is the one who is having mortgage issues and your friend is trying to get them to refi through a company that will pay her for the referral !!!!!
well let me restate something
Your relative is very lucky to have you watching their back
You can approach it with her in a way that your watching out for her too because "she may not be aware of the negatives of dealing with this company" and "because she is such a "nice church going person" you would hate to see her refer something bad to someone"
Though if it was one of my family members being used for such a thing I don't know if I could be very tactful
Before I even got to Karla's post, the con was apparent. This is why we are in the mess we are in right now. Consumers being taken advantage of - if anything we have learned from all of this is to speak up and ask questions. Two to three years ago, no one would have even asked.
This person does not meet my definition of friend.
I told her it didn't make much sense since the house is at 6%; here's her response: (I'm going to ask her where is the 25% reduction coming from--also, I just found out that the home's LTV is about 120%, whatever that means)
"Ok. You do realize that even though your interest rate will be higher the amount of the loan will drop by 25% so unless you are at a fixed 6% rate the 8% interest rate isn’t that big of a deal.
BTW, if you have an equity line on any of the houses that isn’t maxed out you can pay off your credit card bills and build that into the loan as well. That’s what I’m doing. Just an extra thought."
I told her it didn't make much sense since the house is at 6%; here's her response: (I'm going to ask her where is the 25% reduction coming from--also, I just found out that the home's LTV is about 120%, whatever that means)
I would tell her to simply not do business with anyone who pitches an Option ARM as a way to squeeze into a house. That's not what Option ARM's should be used for. And if you're hearing about an Option ARM for the first time from a loan officer, you have no business getting one. That's the kind of product you need to know everything about before even shopping for one.
I told her it didn't make much sense since the house is at 6%; here's her response: (I'm going to ask her where is the 25% reduction coming from--also, I just found out that the home's LTV is about 120%, whatever that means)
"Ok. You do realize that even though your interest rate will be higher the amount of the loan will drop by 25% so unless you are at a fixed 6% rate the 8% interest rate isn’t that big of a deal.
BTW, if you have an equity line on any of the houses that isn’t maxed out you can pay off your credit card bills and build that into the loan as well. That’s what I’m doing. Just an extra thought."
So she is advising you to max out your HELOC and then bail on it. This is like people that go on a shopping spree for 2 months before they know they are going to declare bankruptcy. You might get away with it, but for someone to recommend this as "advice" is unethical and just stupid.
The LTV being 120% means they owe 20% more than the home is worth. Fors example, if the home is worth $100,000 and the loan is $120,000... then you have 120% LTV.
It is a big deal that the interest rate is going from 6% to 8%. You are paying 2% more in interest and there is no guarnatee that that they will drop the balance one penny, let alone 25%. Thats their hope... they get a lot of people signed on and can then negotiate with the bank to take the loans off their books at a discount.
It's all one shady scam after another... this is sort of unethical advice and greed (that referral fee) that got consumers into this mess in the first place.
The lady that recommended this "Save My Home" program already turned in the paperwork for herself (she's getting in as well), and it's going to be interesting to see the outcome of this.
I will keep updating this thread as I get more emails or information from her.
if this JW financial Solution Company actually does what they say they do? I dont care about the option arm loan. I just want to make sure that there have been people with results out there. do they actually lower your loan balance and does it take 3- 5 mos.? Is there any one out there that has completed this process?
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oh boy
