Replies to post #292 on ELECTION 2016 (2016)

[The Original dpb5!]

Hi Sara,

Excellent commentary from all regarding the subject matter (re:mortgage loans)

As a sidenote and only as a point of reference, I have to wonder how many people would have signed mortgage papers to buy a home if the entire 49 WORD TEXT of the lending agreement were as follows...


_______________________________________

For purchase of said property, borrower agrees to pay lender a payment over the next 90 days as follows:

On day one, borrower will pay lender one penny.

On each of the following 89 days, borrower agrees to pay lender a sum equal to the prior days payment twice.

________________________________________

WOW! This APPEARS fantastic somehow...

...until one does the math.

A NEW HOME in ONLY 90 days, paid and clear?

Yes, but at what cost exactly?
(I challenge anyone reading the above lending agreement to calculate and post the total purchase price!)

Ironically, I believe that the vast majority of people would still complain that they did not UNDERSTAND what they signed.

Even in a very short lending agreement like the one above, (vs. a long unreadable one) it does not and should not ever exempt the borrower of simply "misunderstanding" what they are signing.

[mcenulty]

Agree with you completely about how far this administration has bent over backwards to cover big business. Just look at the change in the bankruptcy provisions to protect the credit card companies from their own greedy practices.