Do you really think that in a year a family is going to miraculously be able to make what they owe plus 20% especially on such a large sum of money? That is worse than the pay day loan companies. Believe me I know about how those work I use to be a manager at Check Into Cash.
We would give loans to people who were already completely broke and charge them ridiculous rates of interest for loans preying on their hopes that they would somehow be able to catch up. I honestly don’t know how they can get by with it but I think that it has something to do with the fact that loans are only supposed to be given for one pay period. Yea right!
Because of disclosure laws they had to tell you what the APR was and it was usually in excess of 400% APR.
I only worked there for two months as I couldn’t stand working for a company who was solely based on predatory lending and taking advantage of people. What you are proposing is absolutely no better, but it is probably legal.
HAs everybody completely lost their minds? im assuming most people here are private investors trying to buy foreclosure homes. im assuming that most people try to get the homes for atleast 15-20% below market.
Now in my scenario , say a house is worth 200,000 ad guy owes 100,000. takes a loan at 15% for a year. He then has time to sell his house (1year) for full market value. he sells for a full 200. pays back the 100 plus 15 interest. bottom line he lost 7.5% equity in his house.
SO u tell me who the immoral crooks are here. All u bargain hunters rippin out everyounce of equity in ppls houses . OIr me who just saved the guy almost all his equity???
CashManNJ,
You asked for advice, received it, analyzed it and have made up your mind. If your due diligence is complete, it’s time to take the ball and run with it. From the responses you’ve received, it appears everyone here is urging you to err on the side of extreme caution.
Rest assured, there are no immoral crooks here.
Regards,
Dave
Kinda interesting…You ask for peoples opinions…they reply with their opinions and some very good advice…and your response? you tell them they’ve all lost their minds call them a bunch of immoral crooks. Go figure.