Tucson There is always another sub-prime lender somewhere
And Always someone who will borrow
Remember connecting those dots I mentioned last week. Well it is time to connect them. 
You were thinking the sub-prime lender market had dried up. Don’t believe it for a minute. It might not be called sub-prime and it might have a new face on it, but it is what it is. Here is an example taken from MSN.com front page August 30, 2007.
Since then I’ve found it on Yahoo and MSN as well as several other sites. A different graphic but always the same message and site
The Title tag read:
Refinance Mortgage, Refinancing Rates, Mortgage Rates
From the example on the website explaining the $499/Month!*
“**The $483.00 payment is based on the borrower selecting the minimum monthly payment option on a $145,000 adjustable first mortgage loan using a minimum payment interest of 4.00% (which is calculated by taking the actual interest rate minus 3.00%). The actual interest rate is 7.000% with a 7.469% APR.
By selecting this option, the loan has the potential for negative amortization. The minimum payment does not cover all of the interest that is owed for the month and, therefore, you will incur deferred interest that is added on to the balance of the mortgage. You may make the minimum monthly payment for up to 5 years or until your new mortgage balance is 115% of the original mortgage amount. The borrower also has the option of making an interest-only payment or making principal and interest payments amortized over 30 years. For example, if the borrower selects to make principal and interest payments amortized over 30 years, the monthly payment will be $964.69. These terms are available for first mortgage loans. To qualify for this monthly payment, the property must be owner occupied single family residence and a loan-to-value ratio of 80%. Credit restrictions may apply. Rate is variable and subject to change daily without notice.
LowerMyBills, Inc. is not acting as a lender or broker. The information provided by you to LowerMyBills is not an application for a mortgage loan, nor is it used to pre-qualify you with any lender. If you are contacted by a lender or broker advertising within our network, your quoted rate may be higher, depending on your property location, credit score, loan-to-value ratio, debt-to-income ratio, and other factors. Not available in all states. Not all service providers in the LowerMyBills network offer this or other products with interest-only options.” BOLDING IS MINE FOR EMPHASIS
Notice the image saying “AS FEATURED ON…
Then a different Color
THE OPRAH WINFREY SHOW”
These words are all a graphic, they can’t be traced, so the only way you know the OPRAH WINFREY is on the ad is what you read on the screen. When you click on it, you don’t go to anything about Oprah Winfrey. You will notice the AS FEATURED ON has three dots then the rest in red. HUM!
The name of this site is as misleading as the “service” they provide. It should be “IncreaseMyDebt.com” or “BankrupcyInMyFuture.com“.
This is the problem with “Fog A Spoon” credit. There is always somebody who will take the money today, and blame the system later for their poor choices.
Technorati Tags: interest payments, mortgage rates, mortgage refinancing, negative amortization, oprah winfrey, principal and interest[where: 85737]
Dave Smith | Tucson Real Estate News
I don’t get this, either… Keep seeing these offers online and in the local paper. If the lenders supposedly can’t sell these loans on the secondary market, what in the world do they do with them?
Concerned, that is a very good question and one that makes me wonder what they are really selling.
Notice they say, “LowerMyBills, Inc. is not acting as a lender or broker. The information provided by you to LowerMyBills is not an application for a mortgage loan, nor is it used to pre-qualify you with any lender.”
It is possible they are gathering personal information for a totally different reason and using the site as means of getting people to provide them with contact information.
I saw the same offers in the home section of Sunday’s paper here, too. Don’t recall whose ads they were. It’s bizarre…