Real Estate Blog - Oh, Sure ... Let's help MORE people lose their homes!

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Oh, Sure ... Let's help MORE people lose their homes!

Today I received a call from a guy from a local bank branch. I won't say which one, but it's a big, big national bank.

He had left a message last week on my home phone ... which I never answer as it's there only for the fax. This time he called my office number. Give the guy an "A" for effort. It was a telemarketing call of sorts.

The purpose of his call was to tell me I could reduce the interest rate on my credit card - which carries the same name as his bank. I could receive an interest rate of only 7% if only I would ...

TAKE OUT A HOME EQUITY LOAN!

My first reaction was one of shock then disgust.

I said, "Let me get this straight ... you want me to take out a lien on my home solely to lower my Visa interest rate?"

ARE YOU CRAZY!!!!

This is the same industry that wants to get into our business. Irresponsible promotions such as this - given the current nationwide foreclosure rate - is the best indication I know of that proves they won't have the consumer's best interest at heart.

Talk about the fox watching the hen house!

Posted by Elaine Reese, REALTOR® in central Ohio on 08/20/2007 09:58 PM

Comments (19)

central ohio, foreclosure

19 Comments on Oh, Sure ... Let's help MORE people lose their homes!

AUG

2007

Elaine, you are so right! We need to be so careful to understand what the real motive is behind so much offered to us today! Alternative motives can be a disaster!

Elaine, I remember receiving those calls often a couple years ago and I know of family and friends that took the bait... paying off all their credit card/car loans all bills period by taking out equity loan on their home.. half of them have new credit cards bills/ cars loans ect... what gives?

What's the next big trend around the corner? Someone said reverse mortgages...oh good they're going to kick old people out of their houses next. FABULOUS!

Hi Elaine, the fox graphic hits it home. obviously not all of them are bad.. but the ones that are tend to be extra shady, as in any group. the unsuspecting consumer is in for another wave of credit.. er uh, debt.

Elaine -- that is incredible. I hope that others do the same thing you did! At least with a credit card that doesn't get paid - the collection agency may bug you -- Now, one's home is at risk!

David & Christina: You just know that there will be people to take them up on their offer.

Shannon: I've been noticing more TV ads for the reverse mortgages. Again, it preys on the unwitting folks.

Nick: Well, this bank isn't regarded as being shady - it's one of the major national players. You would think they would postpone promotions such as this given the current ecomonic climate and visibility to what is happening in the mortgage market now.

Joan: You are so-o-o right!

Elaine - It's suprising how many people fall for this. Why would anyone tie something like that to their home?

This is like Phillip Morris asking us to go to their website to learn how to quit smoking.

Elaine, There oughta be a law against soliciting consumer business for home equity loans....

ginger

Ummm...these are the same kinds of folks who bombed me with marketing pieces to convince me to switch from my safe fixed rate mortgage to a risky ARM for the past few years. Clearly, they have no interest in keeping their clients financially solvent/responsible. (I think we're less profitable that way.) There's an Alice in Wonderland quality to all this.

Linda, I'm sure there will be those that rationalize it with a 7% interest rate on the credit card and 8% on the equity loan, being less than the current credit card rate - plus, they'll pay off the credit card and NEVER use it again! Yeah, right!

Fran: That's a good one. I've always wondered about that as well.

Ginger ... or they should be required to watch the tears flow at the kitchen table when we tell them their home won't sell for what they owe.

Irene: I still get the marketing pieces for the ARM's. Now the true Alice in Wonderland would be if they would spend that much effort in getting people to SAVE their money!

AUG

2007

Hey....they're all coming out of the woodwork with some whacky ones huh?

Elaine,

What a great post.

In my previous life, I worked for a big box lender who was always trying to get us Loan Officers to cross sell some garbage service to our clients. Sometimes there was no value in the product or service and many LO's like myself refused.

Providing a service to benefit the client is one thing, but to do it just to boost another $$$ for the company is ridiculous.

And this is why I do not work for a big box lender anymore.

Sally: Yes, they just don't give up. Since this was local guy at a nearby branch, he knows exactly what trouble people are in here. I just wonder where his conscience is.

Gary: that's very interesting news - to actually hear that the cross-selling of non-user-friendly programs are actually promoted.

I'm curious as to what the discussion is like over their conference tables when they're creating these programs. Do they ever consider that their programs might do harm? Or that they might have the most appeal to those less educated or the most desparate.

These poor people are just trying to get some business going. They can't refi the loans they wrote 2 years ago so they need fresh blood.

James ... ah-h-h, but my Mom used to say "you can't get blood out of a turnip". Maybe they should implement programs to stop the bleeding rather than sticking the knife in deeper. Like reducing their credit card interest rate to single digits for no other reason than it would just help people ... and the economy.

AUG

2007

You got THAT right, Elaine. I have had similar calls, adn the mail solicitations are phenomenal. The money spent on sending out junk could probably pay for a good percentage of the loans that are in default. It's all about making money, at someone else's expense.

Jeff

Jeff, I certainly agree on the junk mail as well. I particularly dislike the "checks" they send out. Just adds to the amount of stuff I have to shred. I have a shredder in my home office. Then I bought a second one for my kitchen wastebasket. Sometimes I think I need to add a third one to the trash bin in the garage!

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