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RamRod
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Another big non-story. I'm not the happiest mortgagee Countrywide has by any means and I'm struggling much like Mr. Bailey is. HOWEVER, I knew what my wife was coercing me to sign and the consequences of a downturn in home values and/or the economy at large. I was stupid enough to sign and am now suffering, mightily. Who's fault is this and who should be giving me a break? Personal responsibility is a tough pill to swallow, but, be an adult about it and "don't make the sign, if you can't do the time".
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Big Tuna
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Judged:
1
1
Bailey said he took out the adjustable-rate mortgage without realizing how it worked. Gee, when the sheriff showed up at the door to toss his furniture in the street he found out how the mortgage worked. Sad but another example of not getting all the facts before signing on the bottom line.
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Roadgeek
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Mozilo could have been more temperate in his wording, but I agree with his sentiment. What sort of fool signs a mortgage without letting a real estate attorney read the document first? Without understanding the document? Even simple due diligence would have turned up the facts that Countrywide was engaged in some very shady practices around the country. A Google search would have indicated this. It appears as though Bailey discovered the Internet only after he got in trouble with his loan. A real estate attorney could have explained the document to the borrower and he could have made a better and more informed decision. No sympathy here. I find the conduct of Countrywide and other lenders to be reprehensible; but the borrowers deserve neither sympathy nor any sort of a bail-out. I like the tie. Mozilo's picture reminds me a little of Phil Leotardo; we all know what happened to him....
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scott
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"If borrowers want the freedom to take out credit for hundreds of thousands of dollars, they are equally responsible to not sign something they don't understand."
the guy might be inept when it comes to how email works, but he makes a good point.
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Dont lend to non-payers
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There are two issues here. The first is the attitude of Countrywide. It is no different than most other companies. They just dont care.
The second is the homeowner. He says in the article that he has owned the home for 16 years and now is in trouble. Either there is a part of the story missing (i.e. he recently refinanced) or he has had an adjustable rate for a long time. Either way he has had numerous opportunities to refinance to a low fixed rate. Shame on him if he didn't take advantage.
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Anon Coward
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Judged:
1
1
One more idiot trying to prolong the greedy opportunistic free ride. Because of his bad judgement he leans on the company and taxpayers to bail him out. The snotty response from the bigwig is a non story.
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Insider
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Those castigating the borrower in this case are missing the point. Countrywide and other lenders like it MADE THEIR PROFITS off borrowers not not knowing the terms of their mortgage. Have you ever talked to one of these mortgage salespeople on the phone? They rush you thru choices, make wildly untrue and misleading statements and steer customers into the best product for the company (and the salespeoples' commission) all the while sounding like they are looking out for the customer. I don't see anything in the story that suggests this borrower used disrespectful language, threatened to sue or otherwise engaged in "disgusting" behavior. It's pretty easy for a multi-millionaire, who has preyed on these types for years, to think a request for assistance in a historic real estate downturn is not worth listening to. And for those who think this is a "non-story," that is exactly what the corporate interests in this country want you to think. It allows them to game society at large without anyone paying attention.
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Chicago South Side
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...but doesn't that big, fat, smiling, fake-tanned face of Angelo Mozillo piss any of you peasants off? Not even a little bit? He's part of the clique that is bankrupting us all and we all just think it's fine. In fact, the other comments seem to say that we deserve it. Are you kidding me? Home loans used to be given by small banks to people they knew and trusted. Loans were just not ever given to people that the banks, the financial professionals, judged irresponsible or unable to pay. Community based banks were helping responsible members of the community get homes that they could actually afford and pay off. Countrywide is a shell game that sells complex lending schemes for the sole purpose of keeping Angelo Mozillo fat and tan. They make their money from the transaction fees then they turn around, package the mortgages into sellable bonds, make more money and walk away. If the debt goes bad, do you think Mozillo will suffer? Hell no. But for sure, the damn fool who took the bait is homeless and financially ruined. It should also be mentioned that the rest of us have to deal with outrageous home prices, a credit crisis and dead-flat real estate market.
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Bored
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Insider wrote: Those castigating the borrower in this case are missing the point. Countrywide and other lenders like it MADE THEIR PROFITS off borrowers not not knowing the terms of their mortgage. Have you ever talked to one of these mortgage salespeople on the phone? They rush you thru choices, make wildly untrue and misleading statements and steer customers into the best product for the company (and the salespeoples' commission) all the while sounding like they are looking out for the customer.
I don't see anything in the story that suggests this borrower used disrespectful language, threatened to sue or otherwise engaged in "disgusting" behavior.
It's pretty easy for a multi-millionaire, who has preyed on these types for years, to think a request for assistance in a historic real estate downturn is not worth listening to.
And for those who think this is a "non-story," that is exactly what the corporate interests in this country want you to think. It allows them to game society at large without anyone paying attention. Nonsense. You are not buying a Ronco Oven. You are refinancing your home. If you were trying to save money while blissfully ignoring the potential dangers then that is the chance you took. The world is full of non-ethical companies. That doesn't excuse the stupid.
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suzyq
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Yes, consumers should know what they are doing before signing on the line. But these con men, excuse me, mortgage companies, prey on the longing that everyone has to own a home (usually one they can't afford). And why is it so disgusting for them to send letters begging for relief, when the mortgage companies and banks are whining to Congress to come bail them out? These companies knew d*** well that the people they were signing up would not be able to afford their loans if the rates went up and they sure knew that rates will go up eventually. I don't think that we should bail them out, they made their bed and should lie in it, just like the people they suckered into these ridiculous loans.
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jjrg7
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Judged:
1
When I was in my early 20s buying my first place, the (worst case scenario) terms of an adjustible rate mortgage scared me so much that I was more comfortable with a higher rate fixed. I don't understand how people cannot understand the terms of an adjustible rate loan. It wasn't rocket science. I probably could explain it to my forth grader.
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give me a break
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now my tax dollars will be probably go to helping people who bit off more than they could chew.
do a little research before signing on the dotted line.
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Waiting for 2012
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I agree: The borrower was stupid. I also believe Countrywide was greedy and preyed on stupid people. Maybe not all of the borrowers were stupid; some were greedy and arrogant themselves. What made them think they were entitled to own a house they couldn't afford? Why were the banks allowed to make loans to people who couldn't afford to pay them back, and then they changed the laws to make it impossible for people to declare bankruptcy? Why should people be allowed to declare bankruptcy for taking out loans they can't afford in the first place? On the other hand, why is it people that have had catastrophic medical problems and can't pay their hospital bills--yet they can't declare bankruptcy--end up homeless? WHY IS THAT??? Why do CEO's have to make multi millions of dollars a year when they're just extra bodies taking up space on the golf course? 12/21/12 can't come too soon for me!!!
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AKK
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Chicago South Side wrote: ...but doesn't that big, fat, smiling, fake-tanned face of Angelo Mozillo piss any of you peasants off? Not even a little bit?
He's part of the clique that is bankrupting us all and we all just think it's fine. In fact, the other comments seem to say that we deserve it. Are you kidding me?
Home loans used to be given by small banks to people they knew and trusted. Loans were just not ever given to people that the banks, the financial professionals, judged irresponsible or unable to pay. Community based banks were helping responsible members of the community get homes that they could actually afford and pay off. Countrywide is a shell game that sells complex lending schemes for the sole purpose of keeping Angelo Mozillo fat and tan. They make their money from the transaction fees then they turn around, package the mortgages into sellable bonds, make more money and walk away. If the debt goes bad, do you think Mozillo will suffer? Hell no. But for sure, the damn fool who took the bait is homeless and financially ruined. It should also be mentioned that the rest of us have to deal with outrageous home prices, a credit crisis and dead-flat real estate market. I could not agree with this more. My first reaction was also in response to the fake tan. Is that make-up? Geez gentlemen, if you're going to wear make-up, at least make it skin- colored. But more importantly, I can't believe how most of the comments are in defense of Countryside. I mean people...both sides could be wrong here...but families are living in cars in parking lots, while this guy is bathing in his millions and using not only to make himself look like a leather suitcase, but also to find new and better ways to deceive less-saavy, less-fortunate, less-educated people. Is this really the kind of world we want to live in? It's the slow death of the American dream (only people saavy enough can enjoy a having a roof over their heads).
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Reality Checkpoint
AOL
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Caveat Emptor - ever heard of it? It means 'buyer beware.' In a world filled with sharks {and - goodness knows the lending industry are - collectively, sharks} who - even remotely in their right mind, would sign a debtor obligation note of a mortgage for their home without being aware of what it means {even in the most basic terms}? Only a fool, moron and/or idiot would do such a stupid thing! NO, while I certainly think that lenders who didn't underwrite risk and ratings agencies who certified these bundled risks as 'AAA' should ALL be forced out of business, any 'moroon'{as a smart and famous rabbit would call 'em} are getting what they deserve. When you make no effort to understand what a re-set means on an adjustable mortgage, maybe you don't deserve to live in a house. It's time Americans were held responsible for their own actions [and/or inactions]. Why the heck should I [a taxpayer who secured a jumbo fixed at 5.7% having put down 20%+ to avoid PMI ten years ago} pay for other people's stupidity, greed and laziness? I'm sick and tired of it. You walk on railroad tracks - you get hit by trains. Don't expect me to bail your dumb b-hind out of the mess of your own making. As for the 'house-flipers'{who speculated on market appreciation and quick turnover}, like any business that can't meet its obligations, they get to meet the bankruptcy court judge - and rightfully so. The only ones who should be bailed out are the elderly who were actually preyed upon by lenders with preditory practices. Otherwise, go find yourself a refridgerator cardboax and an underpass to live in/under - IDIOT! Most species push their 'moroons' out of the nest, cave, hive, etc, etc, as soon as they perceive that they're not hitting on all cylinders. In this country we reward the 'moroon' and penalize the prudent. Hum, a nation of grasshoppers with not many ants. It's a system/society that's bound to collapse.
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Insider
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Bored wrote: <quoted text>
Nonsense. You are not buying a Ronco Oven. You are refinancing your home. If you were trying to save money while blissfully ignoring the potential dangers then that is the chance you took.
The world is full of non-ethical companies. That doesn't excuse the stupid. but Bored, we are not all as intelligent and competent as you. It must be nice...
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dippy
AOL
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"Buyer Beware" What else have to be said. Creative financing was not a creation of the buyer, but the sellers. There are alot of good people who got caught up with the economical down turn of our economy. so if the generl public is so willinging to throw all these people to the wolves, let's see how all of these mortage companies do with this large influxes of repossesed homes, sitting around falling apart without occupants or care. After that happens the government will have to step in and pull the mortage companies fat from the fire at tax payers expenses....personally i would rather see that money and effort go toward helping those in need, rather then proping up another fail corporation
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Rob
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Dear Daniel Bailey,
Don't buy something you can't afford.
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Dis the Politicians
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Big Tuna wrote: Bailey said he took out the adjustable-rate mortgage without realizing how it worked.
Gee, when the sheriff showed up at the door to toss his furniture in the street he found out how the mortgage worked. Sad but another example of not getting all the facts before signing on the bottom line. Let's see. A guy signs a contract for a loan that is likely the biggest he ever took out in his life, probably several times his annual salary, and he wants sympathy because he didn't take the time and effort to understand how it worked? The lazy idiot deserves what he's getting.
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Dis the Politicians
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suzyq wrote: Yes, consumers should know what they are doing before signing on the line. But these con men, excuse me, mortgage companies, prey on the longing that everyone has to own a home (usually one they can't afford). And why is it so disgusting for them to send letters begging for relief, when the mortgage companies and banks are whining to Congress to come bail them out? These companies knew d*** well that the people they were signing up would not be able to afford their loans if the rates went up and they sure knew that rates will go up eventually. I don't think that we should bail them out, they made their bed and should lie in it, just like the people they suckered into these ridiculous loans. I agree with you fully. No one, borrower or lender, deserves a bailout. It's simply unjust for people who behave responsibly to have to subsidize the irresponsible. A bailout will also simply insure that this kind of thing will occur over and over again. Also don't forget the role of Congress in all this. By pressuring lenders to make marginal loans in the name of non-discrimination, they bear a part of the blame for this entire mess. The banks, it turns out, were right in stating for years that low or no money down loans were bad credit risks. They weren't redlining, simply being prudent, way back when.
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Judge it!
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