Friday, July 27, 2007

Did you want a mortgage with your latte? (Y2/M3/D7)

So I was at Starbucks this morning and I saw a young couple with their little baby and another couple all huddeled over some legal documents. I can't help it, this kind of thing forces me to eavesdrop. Thre's a lot of signing going on when suddenly the young mother in the group says:

"I don't understand why it says 8.7%. You said 8.475% so why is it different?"

And the gentleman (?) who is arranging all the documents for her says:

"Oh, well, it's probably going to go up so I just put in the higher rate."

Whatwhatwhat?! I am in a state of complete and total shock but before I can say anything the young woman responds:

"I am so sick of this! It just keeps going up and up. I just want this to be over."

Her husband says: "Well, are you sure you want to do this?"

And then the gentleman (?) who was arranging the papers says:

"It's only going to be maybe another $10 a month so... you want the house right?"

The young mother nods and they begin signing.

At this point, I needed to be physically restrained. I wanted to scream at this young couple:

"EIGHT POINT SEVEN PERCENT! HE THINKS IT MIGHT GO UP SO HE PUT IN A HIGHER RATE? WHAT ARE YOU PEOPLE DOING?! THIS MAN IS COMMITTING A CRIME! THIS IS NOT THE PLACE TO GET A MORTGAGE! THIS IS NOT THE TIME TO GET A MORTGAGE! THINK OF YOUR BABY!"

In fairness, I do not know the whole story so I did not interfere. But good lord, is there anyway this might end well? So sad.

3 comments:

Tyrone said...

Sickening. I would've wanted to ask, "How much is the mortgage for?", "What type of mortgage?", "What is the household income?"

Then say, "Don't sign those papers! Go home and talk to your mommy and daddy!"

Maureen Francis said...

Hope you don't mind, but I have to ask a mortgage person to comment on this. I need to understand how something like that could happen. My only *guess* is that they were signing a good faith estimate, not the actual closing papers.

Kate said...

Oh, Maureen, I hope you are right. That would mean the might still have a fighting chance.