Rob Cochems's Discussions

Not to change the subject, but I got a moral question for you guys.  I just worked with somebody here in California, that wanted to purchase a home with only 5% down.  After working up the application and going over everything with her, she told me she was just going to hold on to this home for a year or 2 and sell it for a big profit when the market recovers.  At that point I told her I can't write this loan for you, you are not buying it for the right reasons, and you have no back up plan if you can't sell it in a year or two.  So now she is threatening to sue me and my company for discrimination.  I don't want to do this loan, but are my morals worth going into a law suit over?

This is the one thing I hate about people, you try to do the right thing for people and they hate you for it.  In the boom I always tried to sell people out of the "Pick a Pay" programs, but some people just wouldn't listen, even call me a relic and get with times. Screw it, if your going to buy right now you have to have realistic goals, I will just ignore her, hopefully she decides against buying.  The last thing this market needs is another foreclosure.

Pick a Pays have been around for a very very long time, its sad that companies in order to make a quick profit unleashed it on the masses, and its just as sad to see that type of loan now become extinct.  Its a great loan for the "right person," its a horrible loan for most. 

Waiting4Ever, I absolutely would give her a loan if she said she was planning to stay there for 30 years.  Anyone that bought in the late 80's before the crash in the early 90's is sitting very pretty right now.  All it takes is time, and any home turns into a great investment, not the best investment available, but a great investment.  Drum up business on here, thats a hoot, everyone on here has no interest in buying. And finally we have been in business 17 years...been through two distressed markets.

Waiting, It actually only has to be 10 years, and I will sell the loan.

I

pe

I hope your useless middleman comment is not about mortgage brokers.

I

Spleng, I have never once claimed the market except for some "local exceptions," that values are not trending downwards.  Some markets have a ways to go.  You just got to pay attention to the national news a little bit, but more important is your local area, watch that closely to see when your market bottoms.