Originally posted by Gazelle:
subprime load are not free money, they are loans that come with
very high interest, targeting at people who can barely afford what
they are buying. Just like how credit card target the young and
hoping they will roll over their outstanding.
If you have the mean to buy, why do you want to go for
subprime?
So you are back to talking to
someone whom you have no interest to talk to - and not even a word
of contrition ?
As I said before to you, read carefully what has been posted before
you charged blindly into offering your unsolicited opinions - if
you cannot form substantive views.
If you have never committed to any long term major financial
decision such as a housing loan - it is easy for you to pass
judgment on others, who are in more urgent need for housing
loans.
Sub-prime was a tool specially developed by sly bankers hoping to
get maximum returns on idle monies that they have too much in their
Banks; and in the process design a financial product that entice
those who needs money desparately to use their product with none or
low credit checks - as seen in the following report that was given
in my earlier post:
''Andy Sobel is selling his San
Diego condo for $60,000 less than he owes on his mortgage. He's six
months behind on his payments, but it's all he can do to avoid
foreclosure. He's also writing to Rep. Barney Frank, D-Mass.,
chairman of the House Financial Services Committee.
"Please don't let this happen to anyone else," Sobel, 48, says he's
writing, and will explain how he was "duped" into buying his first
home in 2004 with an adjustable-rate mortgage designed for him to
pay only the interest each month, no
principal.
Sobel, a community organizer for a non-profit, feels there was no
regulation to protect him from the mortgage broker who got him a
loan, then changed companies. Or from the lender who wouldn't talk
about renegotiating the loan until after the interest rate
increased and Sobel had missed three payments. The bank agreed to
let him sell the home at a loss to save the time and expense of
foreclosing on him''
Just walk into any Post Office, or
any commercial banks in Singapore - and you can apply for
''Easy-Cash'' up to twice
your monthly salary, and the interest payable in at a seemingly
attractive rate to a lay person.
However, when you start working deeper and ask more questions, the
interest on the loan is worst that any short term loans or
overdrafts from the banks.
Once, you sign on the dotted lines - you are snared.
The Commercial Banks will want you to take as much as you can in an
unregulated setting, and when the storm breaksout, it will start a
recall of its loans without any prior notice.
Many have been pushed into bankruptcies, as in the referenced
article given.
It is NOT about spending beyond one's means, but seeking the best
financial deal when caught in a tight spot, and with the loan
conditions loaded in favor of the banks.
