Wednesday, August 15, 2007

Why the market's not done...

I have a friend who recently went through foreclosure with a major mortgage lender. He was "fortunate" in that he managed to find a buyer which covered his defaulted mortgage and left him with a little bit of cash, but unfortunately it was a bargain-basement buyer and he left a lot of his home value on the table. Still, it left him without the scar of a completed foreclosure on his credit report.

Today he received an e-mail from that lender asking him to come back and talking about great rate consolidation offers.

So, in all the talk about "sub-prime mortgage woes", and tighter lending practices, the lenders are still as stupid as ever. The e-mail may as well have said, "Hi! You almost defaulted on a six figure loan with us which would have further exacerbated our "credit woes"! But, that's ok, we think you're a good credit risk! Here's some more money!!"

Brilliant. Watch the market declines continue...

ps. the best part is that I just looked closer at that article. The lender in question was in fact Countrywide. Nice.

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