Home buyers unmollified by THP promises

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Madoff Lending

Schnecksville, PA

#110 Apr 24, 2009
Patrick wrote:
<quoted text>
The scam is more with the builders that have their own lending division. Yes, THP, Pulte, KHov, all of them have their own lending division. Your not paying $300K for a house that cost $150K. Go look at their filings with the SEC. Pulte for 2007 and 2008 posted losses. Their total sales didn't even cover their cost of the homes (which doesn't cover the costs paid to the salaried people). So if you think their is a huge mark up on these homes.....then explain to me why this company is taking a beating financially?
The scam with their lending divisions is this. They give you this great discount to use their lending division and give you a discount. This discount is the phantom write up on the house but it is done so you take their lendors. Afterwards, the lendors then sell your mortgage to Countrywide, Bank of America, etc and make a commission off the sale (6% or so). If you can talk the builder into giving you the discount without using their lendors, good luck, most won't let you. Per the BBB, as long as they aren't making you take ridiculous interest rate loans to get the discount, there is nothing wrong with the practice. If you don't like what they are doing, buy something else.
They way to mess the likes of Pulte, THP is to buy the house and refinance immeadiately. That way they can't make a commission on the sale of the loan.
Yes Batman...I understand your smoke and mirrors philosophy....but get real with your margins you have them making. I think the shareholders would love it if they were making those profits you claim.....maybe we wouldn't be in this economic crisis if they were in fact making those profits you think they are!!!
You still do not understand that if you dissected their books and records with a forensic accountant you will find where all of the money goes to!

These companies are all posting losses so they do not have to pay taxes.

You will never know the full story about how many local officials that were paid off in cash that was siphoned off through phoney LLC's.

If I wanted a death wish, I would reveal my name, except that I am worth more alive to my family.

Most people in the banking industry have no clue how white collar crime works.

Madoff did not pull off the largest Ponzi scheme in the history of the world all by himself. Many people were paid off and many more politicians looked the other way so they could line their pockets.
I hate spigots

United States

#111 Apr 24, 2009
what crap wrote:
<quoted text>I learned something new...that you are a child ...calling people dumb dumb ??? Nice...
Wow! You are cool!
I hate spigots

United States

#112 Apr 24, 2009
THP Homeowner wrote:
<quoted text>
You have no idea what you are talking about! I'm sure my home is alot better looking than yours! A bit jealous, hmm?
Ahahaha! I guess you just recently got raped by these sly fellas. Sucka!

Since: Apr 09

Allentown

#113 Apr 24, 2009
OMFG wrote:
<quoted text>
That's the deposit for the sale of agreement dumb dumb. You don't put a down payment until closing. Did you learn something new today?
That's what I thought. I only put $1500 towards the sale of agreement when I bought a condo before it was built. Those fools got suckered. Lesson learned the hard way.
Hopeful

Atco, NJ

#114 Apr 24, 2009
I am really sorry about all those who had initial/earnest deposits on THP homes; we do not know if that money is lost yet. Living in limbo is not easy and a $1,000 or $5,000 deposit is still a hit to the finances, especially if you need to move into a house in the very near future. On the bright side, there is a huge inventory of existing homes with proper pricing and these homes include a little more land and wider streets in established neighborhoods. Please don't despair; you can still use the balance of your deposit on a nice used house. If you put a deposit on an existing house, that money goes into escrow and if anything happens, you get it back. Good luck to all who have been affected by this crisis.
yep

Spring Mount, PA

#115 Apr 24, 2009
John D wrote:
<quoted text>
Oh yeah, let's buy some pre WWII brick pile of garbaage that floods, has mold, rodent infestations, can't hold the heat, a/c in the windows... no thanks, keep your garbage.
You stupid.
omg

Mount Aetna, PA

#116 Apr 24, 2009
I just want to know one thing... When am I going to get my money back. I no longer want the house I want the money back so i cn go some place that will respect me enough as a buyer to call me and tell me to get out now. But since THP can't do that... They can kiss my backside
STEELERSROCK

Emmaus, PA

#117 Apr 24, 2009
Batman Properties wrote:
<quoted text>
And the scam is that you put down $5000 and the tooth fairy puts in the other $25,000 that was "loaded" into the mortgage...
So, the $300,000 mortgage becomes a $275,000 mortgage...
Get it.. Smoke and Mirrors.....
This is why the ecomomy took a big hit. This townhouse is only worth $150,000, so there is a $150,000 cushion to work with.. The builder could care less..The consumer is left with a $275,000 mortgage and the builder/developer gets the spread to payoff the appraiser, mortgage broker, banker, etc...The only business deal worse than this is the Madoff Scheme.
They should have looked here before ever considering buying.

http://patrick.net/housing/crash.html

Anyone who bought during the bubble years has negative equitity around 30-35% already. Thost figures are going to continue dropping. Before the housing bubble has bottomed prices will be back to the mid to late 90's values.
STEELERSROCK

Emmaus, PA

#118 Apr 24, 2009
Drive around the Lehigh Valley. You'll see the majority of newer developments sitting with 1/2 to 3/4 empty homes. Prices rose over 100% during the bubble years here. Now prices are down 30-35% from the peak.

Get the facts!!!

http://patrick.net/housing/crash.html

This bubble is already making the dot.com crash seem like a game of candyland. It's far from over.

Check out the best site for housing/credit bubble information. It links real ad's from real newspapers and economists who actually know what they are talking about. All you get from the morning rag is articles that take 100% of there information from local realtors. That's like asking a car salesman if you're getting a good deal.

Watch this video that shows the similarities between the great depression and our current housing bubble. The same lies were tried then as being told today. Realtors spin and the papers get the biggest ad revenue from realtors.

Asty

Walnutport, PA

#119 Apr 24, 2009
thePrideofPalmerton wrote:
<quoted text>
Any six month old house will always have a punch list of issues to address due to settling, etc.
Obviously the pride of Palmerton has never lived in anything but a tin can trailer or one of Palmerton's 100 year old dwellings called houses.
I don't live in Palmerton. And I was just asking a simple question.
STEELERSROCK

Emmaus, PA

#120 Apr 25, 2009
Asty wrote:
<quoted text>
I don't live in Palmerton. And I was just asking a simple question.
Those 100 year old homes are built better and will last longer than any of these new cookie cutter junk houses that's been built in the last 10 years. These garbage McMansions that were selling for $300k + are built with 2 X 4's while those old 100 year old places were built with a minimum of 2 X 6's(and bigger). That's why these new homes have cracks in the foundation/walls within a few years and those 100 year old homes don't have 1! These new garbage track homes won't last 30 years without major/major structual damage that will need repair or most likely torn down.

The housing bubble of the previous 10 years is the biggest ponzi/pyramid scheme this country has ever witnessed. Getting rich quick just doesn't work and you would have thought all the house flippers would have got it after the dot.com bust. The average home in the lehigh valley at the peak was around $230k. You won't see that again this entire century. Mark my words! Heck people didn't ever think prices would drop. Remember the old realtor lies of "Prices always go up", "the aren't making anymore land(except in Dubai)", "buy now or be priced out FOREVER". LOL!!!!!!! The average price of a lehigh valley home right now as reported by the morning rag is around $160k. That's 60-70k from the peak of a few years ago. I gurantee within the next few years as prices keep falling the average single family home will be around 90-100k. That's what prices should be in comparision to the medium income of local residents. We are only in the 3rd inning of this housing/credit crash. That's a fact only realtors/housing flippers/investors don't want to accept.

http://patrick.net/housing/crash.html
Be diligent

Macungie, PA

#121 Apr 25, 2009
Everybody went to THP because they were lured by the low price. There was obviously a reason there was a low price. These guys were just shuffling money, it's called cash flow. As long as cash is coming in cash can go out but when an economy such as this occurs and the crap hits the fan the money stops coming in and you and every subcontractor lose because there is no more money going out. There are good quality, solvent, fiscally responsible builders but you may pay a little more for their solid financial position, expertise and higher quality. Do your homework, don't be fooled by the model home furniture, decorating, etc. At the end of the day the more expensive guys look like a bargain, you'll have less callbacks and you won't end up in such a bad situation. Good Luck to all who have been affected.
STEELERSROCK

Emmaus, PA

#122 Apr 25, 2009
Be diligent wrote:
Everybody went to THP because they were lured by the low price. There was obviously a reason there was a low price. These guys were just shuffling money, it's called cash flow. As long as cash is coming in cash can go out but when an economy such as this occurs and the crap hits the fan the money stops coming in and you and every subcontractor lose because there is no more money going out. There are good quality, solvent, fiscally responsible builders but you may pay a little more for their solid financial position, expertise and higher quality. Do your homework, don't be fooled by the model home furniture, decorating, etc. At the end of the day the more expensive guys look like a bargain, you'll have less callbacks and you won't end up in such a bad situation. Good Luck to all who have been affected.
"Everybody went to THP because they were lured by the low price."

LOL!!

The prices since the start have already dropped 20% and will continue to drop another 50-60% before they end up selling (if the ever do).

Get the facts or stay stupid!!

http://patrick.net/housing/crash.html
Patrick

Lancaster, PA

#123 Apr 28, 2009
Madoff Lending wrote:
<quoted text>
You still do not understand that if you dissected their books and records with a forensic accountant you will find where all of the money goes to!
These companies are all posting losses so they do not have to pay taxes.
You will never know the full story about how many local officials that were paid off in cash that was siphoned off through phoney LLC's.
If I wanted a death wish, I would reveal my name, except that I am worth more alive to my family.
Most people in the banking industry have no clue how white collar crime works.
Madoff did not pull off the largest Ponzi scheme in the history of the world all by himself. Many people were paid off and many more politicians looked the other way so they could line their pockets.
Sounds to me like you were once involved in some of these payouts....am I right?

Also....no matter how proficient the CPA is in examining their books....they are never going to find fraud that is perfectly concealed. The goal of the CPA is to assure the financials to a reasonable amount, not 100%.

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