There is a new kid in town...and the kid wants to save you money...or make you money. Just depends which side of the transaction you're on. CheapHousePayments.com (www.cheaphousepayments.com) has developed a unique patent-pending program that helps sellers sell faster and gives buyers an incredible incentive to buy! And we don't affect lenders profit margins at all!
In a nutshell, here's how the program works. Sellers (particularly those sitting on inventory and paying expensive carrying costs month after month) will pay CheapHousePayments.com an advertising fee. We post the property, photos and all, on our website. Buyers who want to have lower house payments for their first two years, will select property they like. After closing, CheapHousePayments.com will take a portion of our earned advertising revenue and put it in an escrow account for the buyer. Funds are 100% secure and are handled by a separate company. Payments are made to the buyer every month from this escrow account for up to 24 months. The result is lower net monthly payments to the borrower!
Here's the most wonderful thing about this program. We do NOT increase the lender's credit risk (we're not a lender, so we don't take your application or approve your loan). We do NOT increase the borrower's risk of default (because you're approved for the loan without consideration of our payment assistance). We do NOT artificially inflate the value of the property (because the seller needs to sell it for market value and a credible appraisal needs to support this).
This blog isn't about CheapHousePayments.com. I'm starting this blog because I believe CheapHousePayments.com can be a great solution for a frightening real estate finance market. There are news articles released every day that probably cause mortgage company executives to lose sleep...or lose years off their lives...or both. Certain players in the finance industry have created a terrible situtation with option ARMs, exotics, no doc loans, stated income loans and other creative financing. As these loans change from teaser rates to higher rates (or as buyers lose their ability to pay because they "accidentally" overstated their income), default rates go up and foreclosures increase. Buyers lose their homes. Sellers lose their security. Investors lose their investments (or at least the investments don't perform as well). The chain reaction is felt far and wide...and the effect touches our entire economy!
What are your thoughts?
Oh...and one more thing. If you take a look at CheapHousePayments.com and want to tell me it's "fraud"...just do me one little favor. Support your argument with something more than a blind opinion. Cite a statute or regulation (there are more than enough to choose from in this heavily regulated industry). CheapHousePayments.com's mantra is "full disclosure". We hide nothing. We are very careful with our contracts, and we're working very closely with some of the largest and most respected lending institutions in the U.S. We have our own legal department (of which I run). We also have very qualified outside counsel we associate with when necessary. We're here to help everyone win!
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