Wednesday, August 30, 2006

Deceptive Flyer from Mortgage Broker

Deceptive Flyer from Mortgage Broker
(click on image for larger version)


  1. Wow, he didn't even bother with the fine print. Smells like desperation from here.

  2. Dear Mr. Insley:

    I have FICO of 12, declared bankruptcy in 2003, and just lost my job at the Post Office. I would really really like one of the $1,000 a month homes. So would my brother Darrell and my other brother Darrell. Please give me a call between 2:00 and 2:05 am so we can start working together,

    your friend, "DL"

  3. in this industry with all the one-sided expert reports, this one doesn't seem to bad to me.

    sure, it's one sided, but hey..

    the "you get 12 months of headaches" .. um, maybe this guy doesn't actually own a home. homes come with plenty of headaches. With ownership comes responsibility of and for the property.

  4. Why it is deceptive:

    -neglects to mention you get 12 months of shelter for your 12 months of rent
    -neglects to mention that essentially no principal is paid in the beginning of a mortgage amortization period, so you are renting from a bank instead of a landlord
    -misleads by saying you get 12 months of headaches, when in fact its the landlord who gets the headaches. as a tenant i ain't fixing no stinkin toilet.
    -says you have nothing to show at end of 12 months of rent, but by overpaying for property during the bubble, you'll probably have even less to show for your mortgage payments.
    -doesn't mention that the cost of owning is twice the cost of renting (again more interest down the drain to the bank)
    -says "you own the home" when you buy, when in fact the bank owns the home and you may even end up owing the bank more than the value of the home if you use one of his gimmicky mortgages

  5. "-neglects to mention you get 12 months of shelter for your 12 months of rent"

    If an explanation is required for adults as to why/how they live indoors on a month to month, year to year basis, then there is no hope for them.

    Explaining to renters that they get shelter in exchange for paying their rent is just plain insulting. And you are attacking the author of this flyer with this argument? Puhleez.

  6. Did you finance your 12" Powerbook too?

  7. He doesn't mention that most of the people who will respond to this ad will get:

    1) interest only loan
    2) neg-am loan

    Both are far worse than renting in a down or flat market.

    Let's see in 12 months with:

    1) you have no more equity than 12 months earlier and you have to pay taxes and HOA.

    2) you owe more money and have less equity than 12 months earlier and still have to pay taxes and HOA.