Tuesday, March 12, 2013

WHOA! Is it me, or did I just get "Re-phuked" when I saved my home with a loan modification??? Take a look...

So, let's explore this example of what I'm talkin about:

My original mortgage was for 130,000. I was supposed to pay $1000 per month. Say of that $1000, $100 are spent on bills and the other $900 went everywhere except the mortgage co. This goes on for say 6 months, and I accrue a debt to the tune of $1000 for payment and $100 in fees (to keep it simple) each month for a total of $6600 owed. So my mortgage company and I agree to new terms and a plan to get me current. i.e. my interest rate is dropped very low, and my accrued debt is tacked onto my principle along with another $1400 in fees and penalties. Fair enough, at least I still have my home.

Whoaaaaaa! Um, I'm a horse's ass... Look at what just REALLY happened:
I now have a principle of 138,000. 6600 of that 8000 are payments on the original principle. Now those payments have been tacked onto my loan amount. You see? I now have to make those payments twice. Once I get the loan down to 130,000 (in 5 years lol) I am then paying the original loan payments... Wait! Didn't I just pay those?

But the Love Making doesn't stop there. By refinancing, I restart my amortization schedule as well. This means I go back to 90% of my payment going to interest and 10% going towards principle. That's the oldest, tried and true method of derrier pounding that lenders have been giving home buyers since the dawn of time, without any struggle or opposition I might add.

Go learn about amortization schedules and see what size balls it takes to charge a penalty for early payment on a loan. Corporate America, be it banks, or cellular companies, or paper plate manufacturers, or gas/oil companies, or the federal government, corporate America is slamming a giant, male, copulatory organ into every person's alimentary canal every minute of every day. And you know what? They have to. Because without massive profit margins, they couldn't keep their doors open for a week. People don't realize how expensive it is to run a business. I am amazed by mom & pop businesses that are still succeeding. Then you tack on massive executive salaries and bonuses. Of course they have to fuck the citizenry. Because ultimately, capitalism doesn't work. Eventually, the 1% suck the life blood completely out of the 99% and they're stuck standing there with no one to haul away their garbage. We have to work to save the group as a whole if we want to save ourselves. No one can go it alone.

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