When Will They Learn??

By
Mortgage and Lending with First Choice Mortgage
One of the problems with the housing industry right now is people were misled into loans that they couldn't afford. But everyday on the homepages, the largest ads are usually companies like Lending Tree and Lower My Bills offering a $500k mortgage for $20 per month. Stretching a little yes, but you get my point. If we want to fix the problem I think we should start with ads like these. A recent news article stated that these type of ads are bringing such a huge chunk of business their way that they can't afford to stop them. The part I really don't understand is why people continue down the same path after all of the media on the issue. I originally blamed the greedy people behind these ads and the greedy brokers putting them into loans they would never be able to afford. The more it happens the less sympathy I have. Its all over the news every day. Companies collapsing, Mothers and Fathers losing their jobs and homes but this isn't enough for some to get the hint. We still have clients who respond to the ads and call in looking for these ridiculous loans. Maybe I'm just grumpy today. I just don't understand......?????

Comments (6)

Daniel Sundberg
Crystal Springs Real Estate - Kentwood, MI
The Lending Tree ad that says "People are Smart" just cracks me up.  The general public has no clue how mortgages work, or why some loans are so much cheaper than others.  It would take hours upon hours of class time to teach someone how the mortgage business works, so that they understand those ads are a bait and switch.  With that being said, these companies will self-destruct, or they will be destroyed by Legislatures.  It is only a matter of time.
Sep 11, 2007 09:07 AM
Sam White
College Station, TX
Integrated Marketing - Bryan College Station,
Now is the time to refinance and buy that new yacht!
Sep 11, 2007 09:08 AM
Cynthia Mader
Long and Foster Real Estate inc. - Brunswick, MD

Due to the lack of dignity on many of these gimmick lenders, we need to educate buyers to read the fine print.  The good news is, the companies that offered all of these ridiculous loans are crumbling. Karma

Sep 11, 2007 09:17 AM
Flemington, NJ
The sad thing is is that Lendingtree, et al. not only mislead the consumer, the mislead the mortgage brokers who pay good money for the "leads" they provide.
Sep 11, 2007 09:17 AM
Tom Engelhardt
First Choice Mortgage - Ocala, FL

Daniel- I agree the time cant come fast enough for me

Sam-They might as well come out and say that!

Cynthia-yes, it seems as though some have gone but there many more

Michael-Thank goodness I wasnt included. Youre right though there are alot of good companies that bought leads in good faith.

Sep 12, 2007 07:28 AM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
We need more controls on these fly by night mortgage companies!
Sep 12, 2007 08:59 AM