Posted by MobileZ71 on 2/16/10 4:58pm
Msg #323052

INTEREST-ONLY for 10 years, Adjustable Rate Note

Here we go again!!! I did a 10 Year Interest Only Period closing on a primary residence. Any one seeing the same?

Reply by CopperheadVA on 2/16/10 6:53pm
Msg #323062

OMG say it ain't so! Haven't seen one yet...

The closest thing I've seen are those MIC loans that are fixed for 3.5 years and then turn into adjustable. Your borrower must have had a huge balloon payment!

Reply by CF on 2/16/10 7:50pm
Msg #323070

They have been popping up now and again...makes you wonder! n/m

Reply by MobileZ71 on 2/16/10 8:26pm
Msg #323074

it is a MLD Mortgage loan. Look for the Government to bail them out soon, or sell thier loans to another back for 70 cent to the dollar, just like IndyMac now OneWest bank see video:
http://www.youtube.com/watch?v=sBLwLIPvcJU

Reply by janie/vt on 2/16/10 9:51pm
Msg #323082

Just got home from signing a interest only for 10 years, then adjustable. Didn't think I would see one of those again for a really long time.

Reply by Jessica Ward on 2/16/10 10:33pm
Msg #323090

I saw one of these the other day and it had a 103% LTV. I was sure that was illegal by now. What are people thinking? I just about have to stitch my lips shut to not ask people "WHAT ARE YOU THINKING??"

Reply by GF_CA on 2/17/10 10:58am
Msg #323118

I did a signing last week were the borrowers were refinancing their loan from a 30 years fix rate at a 5.75% to an adjustable at 3.75% for 3 years and changes in 2013. They ask me “is this fix for 30 years?” I told them to call their LO, and that is what they did. The LO start to tell them lies in front of me (basic BS!!)... well I thought that if at 50 years old and you don’t understand when someone is lying to you, then you deserve what you get. Even after they reading the “ADJUSTABLE RATE NOTE” indicating the rate change in July of 2013, they believed the LO (over the documents) who stated they have a fix rate for 30 years.

Reply by jba/fl on 2/17/10 11:29am
Msg #323122

I may have my head on the chopping block here, but

I think I would have pulled the note to the top and let them read their own answer before calling the LO. They would have been better equipped to 'consult' with the LO if they got it into their mind first before the LO starts to 'spin'.

I do not agree, in fact, highly disagree, with your statement : "if at 50 years old and you don’t understand when someone is lying to you, then you deserve what you get." There is always going to be a segment of the population who just doesn't get it, no matter what the subject matter. Case in point: look at the number of notaries who show up here wanting to know which county to put in the venue? I don't think you should be the "White Knight" riding in to save the day, but there is nothing wrong with pointing out what is written.

They asked you specifically, it appears you failed to show and answer. Was your own greed getting in the way of an answer?

Reply by CopperheadVA on 2/17/10 11:38am
Msg #323124

Re: I may have my head on the chopping block here, but

Agree jba, I would not have left without making sure that the B's saw and were aware of what the paperwork said vs. what the L/O told them. I have been in a similar situation before and I simply pointed to the paperwork details and made sure the B's knew what it said. If they still want to sign at that point, then it's on them.

GF may have abbreviated the account but it did seem as if the B's asked if it was fixed for 30 years and the question was not answered except to be told to call their L/O.

Reply by GF_CA on 2/17/10 10:58pm
Msg #323280

Re: I may have my head on the chopping block here, but

they did read the note...all 4 pages. I also made sure that they understand the RTC.

Reply by CopperheadVA on 2/17/10 11:31am
Msg #323123

Unbelievable! And these are the same people who get on

TV and say "I didn't know!!!" when they are about to be kicked out of their house due to foreclosure.

Reply by ReneeK_MI on 2/17/10 12:00pm
Msg #323127

I am speechless at this and glad I don't know who you are. n/m

Reply by CaliNotary on 2/17/10 12:18pm
Msg #323131

Boy, are you bad at your job

"They ask me “is this fix for 30 years?” I told them to call their LO, and that is what they did."

You really aren't capable of saying "no, this isn't a 30 year fixed loan, it's an adjustable loan"? One of our jobs as a signing agent is to be able to make the borrower understand what they're signing without having to hop on the phone to get an answer to the most BASIC questions.

Reply by SueW/Tn on 2/17/10 5:01pm
Msg #323190

GF_CA

I've heard it all now. I had to leave and think about your post. Your post is ideal for a newbie who wants to know what NOT to do in order to be both successful AND be able to look at themselves in the mirror on a daily basis. Your attitude is part of the reason this industry has tanked.

Reply by Susan Fischer on 2/16/10 11:46pm
Msg #323096

Chances are, that market targets homes that will

be put on the market, and indicates faith that values will rise by a reasonable, honest rate.

There are so many more variables in property values now, all over the country, because of the total economic free-fall resulting in 7M unemployed under Bush. Regulation and accountability will weed out salessnakes pushing specialty products like this one onto anyone they can con. That is not to say it's not a good plan for some, just not all.

A quick gain is not necessarily a beneficial long-term success - could backfire. Or not.

Here's hoping the folks using a product like this win their five-year bet. I remember a few signings ago where similar bets were made, but the greedy people lost out on many profitable offers because they were betting on yet even more profit tomorrow, and lost.