Creative Mortgages, Part 2
March 11th, 2006 | by mbhunter |Here’s part 2 — more incredible “creative” methods for lenders to secure loans for people who don’t have all of the numbers going for them. This part deals with Creative Credit Programs:
- No Credit Programs. For people who have absolutely no credit history whatsoever. 100% financing is possible based on payment history from utilities.
- No Rental or Mortgage History Program. 100% financing for those unable to document payment history on either rent or mortgages. Huh?!
- Limited Credit Programs. OK, so you have a credit history, but it’s really short.
- Bad Credit Programs. 100% financing for credit scores as low as 500. This is staggering — this qualifies 98% of Americans!
- Bankruptcy/Foreclosure. 100% financing even if you’re one day out of bankruptcy or foreclosure! (Well, maybe you’ll get it right this time …)
- Collections and Judgements. Forget paying off those pesky judgements!
I was looking around at real estate today in the area for investment. The prices still seem pretty high.
I think I need to be patient. If lenders are soliciting and extending loans to people with such specious credentials, there are going to be crazy amounts of foreclosures coming down the pike. In a recent Reality Check by Gary North, he recommends buying bank foreclosures, but nowhere near a fair value. “Make them eat their mistake,” he advises.
To the banks: Bon Appétit!
UPDATE: Maybe it’s already happening!
3 Responses to “Creative Mortgages, Part 2”
By David on Mar 12, 2006 | Reply
You quote Gary North. Isn’t he the fellow who was preaching to put your assets in survival back in the 1980s? I think he bases it on his own version of Xianity.
By mbhunter on Mar 12, 2006 | Reply
Hi David, thanks for your comment.
I’ve only been reading Gary North’s newsletter for a few years, so I don’t know what he was saying to do in the 1980s. I know he’s written much about what the Bible says about economics and money, and his advice often has biblical basis, but I don’t see this as inventing his own version of Christianity.