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. Why is this deceptive? I don't see any misleading statements.

  3. The only thing I see in this ad that's really "deceptive" is that it implies, in this area, you can get the same type of place for $1000/month renting or buying... even with 100% financing??? Not even close in this market. What you can rent for $1000/month will cost you AT LEAST 3 times that and that's even with 20% down.

    But that's just how advertising works it's not necessarily "deceptive." If I drink bud light, I'm not going to get 5 hot women with next to no clothes on falling all over me, despite what the commercials imply. The only person at fault here is the idiot who actually calls this person thinking he can get a great deal.

  4. 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"

  5. 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.

  6. 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

  7. Saying that "the bank owns the home" is a little disingenuous. This a recent "creation" of some bubble believers.

    The same is not said when a new car is financed, or something is bought on credit - ala college tuition (the bank owns my degree).

    The term "homeowner" has been used forever. It may seem trivial, but it trivializes arguments in which it is used.

  8. "-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.

  9. va_investor,

    I refer to the truck that I have a loan on as belonging to the bank (that is until I make the final payment, which will be soon). Yes the term homeowner has been used for a long time, but in many cases it is misused, until a home is paid off, at best it is a co-ownership situation.

    An education, when financed is most commonly paid for on a signature loan. If you are unable/unwilling to pay the creditor can only go after you, since their is no collateral for the loan. But given how tightly everything is getting more and more intertwined having a lousy credit rating may have some nasty consequences should lending practices become more conservitive.

    Maybe, someday I will OWN a home, but it seems like that will be some time off.

  10. Did you finance your 12" Powerbook too?

  11. 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.


  12. Umm, haus, and especially, Va_Investor, there is no such thing as a "homeowner," if we can all agree we are communicating in English.

    "Home" is an abstract noun. "Homes" can not be bought, or sold. They are made, by individuals. So let's cut the crap.

    The sale of houses (bricks and mortar) is what we are talking about here. Let's stick to the subject.

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  17. David,

    In addition to "Auto-edit" software that will automatically block obscene comments, you might also consider registration requirements for your blog.

    "" will be much less willing to post in that case.

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  19. Ahhh...

    So the obscene poster has been paying attention to me for quite some time...he knows where I live...

    Another real estate agent, faced with impending career change. Or worse? An "investor," faced with explaining to his children, that there will be no college, because of their father's greed, and ignorance of history?

    I'm terribly sorry, really. But be honest with the kids. You will be glad, on your deathbed, really.

    David is not to blame. You are.

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  21. Real estate agent. Livelihood gone. I'd be upset, too, but recognize it for what it's worth.

    These sh*theads are taught to believe (they are incapable of thinking for themselves) that anyone who questions the value of what they are selling is to blame for the lack of sales, and thus commissions. Right.

    Most of them will learn (or be taught) to say, "Low prices. Always low prices." Pretty blue smock, provided by employer.