{"id":1330,"date":"2007-04-22T01:38:44","date_gmt":"2007-04-22T08:38:44","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1330"},"modified":"2007-04-22T01:38:44","modified_gmt":"2007-04-22T08:38:44","slug":"ethical-dilemma-with-the-current-market","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1330\/ethical-dilemma-with-the-current-market\/","title":{"rendered":"Ethical dilemma with the current market"},"content":{"rendered":"

I like to think of myself as an ethical person. Then again, I am sure that most people feel that way about themselves too. We all are victims to the Lake Wobegon effect<\/a> at some point in our lives. But in general I obey all laws, pay my taxes, am a good father and husband, run an honest business and try to make my customers happy. So I am faced with an interesting dilemma that the current market has brought upon me. I don’t think my dilemma is unique; in fact I bet it is so commonplace that it is on the desk of a large percentage of loan originators at mortgage institutions all across the country. It is an important issue to discuss, so important that I originally planned on penning this post for my blog, but figured the traffic and exposure of Bloodhound would be a better platform for debate and discussion.<\/p>\n

Here is the dilemma. I was given a referral to a woman who I do not know personally. She lives in Florida, is a substitute teacher and lives in a condominium with a waterfront view. She has a good credit and a decent rate, interest only loan right now — it does have a prepayment penalty. She is also at 90% with her current loan to the value of the property. Unfortunately she has a bit of a cash crunch right now and would really like to lower her mortgage payments. <\/p>\n

There is no way that using traditional mortgage products can drop her payment any further. First, I know interest only loans are not traditional. Second, before you talk to me about 40 and 50 year terms remember she’s already in an interest only loan — there won’t be much change, certainly not when you factor paying off a prepayment penalty in to the new loan. The only loan that would dramatically lower her payments is a payment option, negatively amortizing loan. If she made the minimum payment she would drastically lower her monthly cash outflow. I’ve explained to her the negative amortization part of the loan, faxed Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I like to think of myself as an ethical person. Then again, I am sure that most people feel that way about themselves too. We all are victims to the Lake Wobegon effect at some point in our lives. But in general I obey all laws, pay my taxes, am a good father and husband, […]<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-1330","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1791,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1791\/vote-for-the-peoples-choice-award-nominees-on-line-now\/","url_meta":{"origin":1330,"position":0},"title":"Vote for The People’s Choice Award — Nominees on-line now","author":"Greg Swann","date":"August 12, 2007","format":false,"excerpt":"Okay, the live version of the People's Choice Award voting interface is on-line. My short-list isn't all that short, alas -- 18 entries total, including seven from BloodhoundBlog. I'll do a better job of eliminating posts in the future. The selections are shown in random order in the voting interface,\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3314,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3314\/project-bloodhound-a-question-from-one-of-the-pups\/","url_meta":{"origin":1330,"position":1},"title":"Project Bloodhound – a question from one of the pups….","author":"Tom Vanderwell","date":"July 2, 2008","format":false,"excerpt":"Okay, I need some collective wisdom.\u00a0\u00a0 Here's my dilemma, I've been operating on blogger for quite some time and I thought it was doing me well, but I've learned I can do better.\u00a0\u00a0 So, I've got things set up at www.straighttalkaboutmortgages.com with wordpress.com and it's 90% of the way I\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10219,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10219\/what-could-be-more-important-than-television\/","url_meta":{"origin":1330,"position":2},"title":"What could be more important than television?","author":"Greg Swann","date":"November 4, 2009","format":false,"excerpt":"I had a dental dilemma yesterday, and it's left me less than useful. I'm working -- I wrote a contract earlier this evening -- but I'm housebound for now. It gives me time to post, for a change, and this is an important topic that I've wanted to take on\u2026","rel":"","context":"In "Casual Friday"","block_context":{"text":"Casual Friday","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/casual-friday\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4194,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4194\/the-belly-to-belly-dilemma-questions-you-must-answer\/","url_meta":{"origin":1330,"position":3},"title":"The Belly To Belly Dilemma: Questions YOU Must Answer","author":"Jeff Brown","date":"September 3, 2008","format":false,"excerpt":"I was inspired to republish this post, which was first seen here almost 18 months ago, after reading the answer my son gave to a Brown & Brown client yesterday via email. I've spent four years mentoring him within an inch of his life. Pride bubbled up from nowhere as\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":835,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/835\/todays-forecast\/","url_meta":{"origin":1330,"position":4},"title":"Today’s Forecast","author":"Kris Berg","date":"January 1, 2007","format":false,"excerpt":"From my 14-year-old daughter, the very girl that brought you \"Louis Vuitton and the French Revolution\", and the (unpublished) account of a local police chase which, according to Emily, resulted in the bad guy \"varnishing a weapon\", we have her weather report: A chance of participation. We call her our\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7828,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7828\/lets-just-say-that-jim-and-dustin-are-going-to-be-working-on-a-secret-project\/","url_meta":{"origin":1330,"position":5},"title":"“Let’s just say that Jim and Dustin are going to be working on a secret project…”","author":"Greg Swann","date":"April 13, 2009","format":false,"excerpt":"...and it's called \"Dining on your dime.\"... Eighty-two comments as I write this, and not one Active Rainier can enunciate the obvious: The emperor is naked. My take, for what it's worth: The new hires are charged with the duty of lining up yet another sucker to buy Active Rain.\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1330"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1330\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}