[net.consumers] Mortgages ala A.L. Williams

mikei@hammer.UUCP (Michael IsBell) (01/31/86)

Recently I've been hearing some fantastics stories
about A.L. Williams giving home loans with no (as
in zero) interest. Something to the effect that if
you put up 10% cash up front they will give you
the loan at 0% interest and amortized over 10 years.

Since I'm not the sort of person who believes in
free lunches, these claims have been heretofore
dismissed.  I'd like to solicit information from
anyone who knows anything about this. Supposedly
this mortgage program is currently going on in
Arizona.

-- 

Michael IsBell
..!tektronix!tekecs!mikei
MS 61-215
Tektronix, Inc.
Wilsonville Industrial Park
P.O. Box 1000
Wilsonville, Oregon 97070
(503) 685-2990

bart@nsc-pdc.UUCP (Bart Weaver) (02/01/86)

> Recently I've been hearing some fantastics stories
> about A.L. Williams giving home loans with no (as
> in zero) interest. Something to the effect that if
> you put up 10% cash up front they will give you
> the loan at 0% interest and amortized over 10 years.
> 
> Since I'm not the sort of person who believes in
> free lunches, these claims have been heretofore
> dismissed.  I'd like to solicit information from
> anyone who knows anything about this. Supposedly
> this mortgage program is currently going on in
> Arizona.
> 
> -- 
> 



    I don't know about A.L. Williams 0% interest scheme is but
    it might be along the same lines as (I think its) Utahs
    Home Mortgage coop.  Its been 4 or 5 years. 

    They claimed 2.25% interest rates but they required a large
    down payment and up to 6 month waiting period.

    I was very interested and (as required by them)* we both made
    an appointment with there "loan officer" (salesman).

    * If any company requires both you and your spouse to be present
      to learn about there program you know they:

    	- Are going to pressure sell you something thats expensive.

    	- Your only going to get this one chance to participate
    	  in there fantastic offer.  You must sign up before you
    	  leave or you'll miss this golden opportunity.



    There sales pitch was fairly simple:
		
    	- 25% down payment

    	- Up to 6 months wait to get your loan

    	- Kind of a strange mid-loan adjustment in payment amount
    	  and interest rate.  (both basicly nominal).

    	- We can do this because were a coop.

    	- YOU would be a FOOL if you didn't take this fantastic
    	  offer.


    BUT when we carefully read what we were to sign we discovered
    the following:

    	- The 25% down payment was not a down payment.  It was
    	  up front costs to be paid when the loan is applied
    	  for.  Can you say 25 points now not at closing!!!

    	- Of course it is refundable if (for any reason) your
    	  loan is not approved in the next 6 months.  Can you
    	  say keep my money for 6 months and then give it back
    	  without interest!  OR  Give us your money and if we
    	  don't go bankrupt you'll get it back.


    Then something dawned on me: If I sign up and ~three other do also
    then the guy before me will get a loan.  Graphicly it would look
    like this:


    Let OS = Other Sucker!


    			 Guy before
    		/           |  |           \
        Me (25%)  OS #1 (25%)  OS #2 (25%)  OS #3 (25%)
     /    /   /                                  \    \    \
  os1 os2 os3                ...                 os14 os15 os16



	It sure is interesting how pyramids can come in so many different
	packages.

	I don't know what ever happened to the coop.  I burned tennis shoe
	rubber leaving there office and have never looked back.


						Bart@nsc-pdc

doug@terak.UUCP (Doug Pardee) (02/03/86)

> Supposedly this mortgage program is currently going on in Arizona.

I haven't heard of it here.  But if I did, I sure would be suspicious.

If you hear of something from Arizona that sounds fraudulent, it almost
certainly *is* fraudulent.  I don't know why, but we seem to get more
fraud operators here than you can imagine.   And such a wide variety of
schemes!  Not just your everyday bunko stuff.  Right now the big story
on the news is the investigation of a number of luxury car dealers who
have not delivered the car ownership titles to their customers -- seems
that they can't, on account of they pocketed the money from the sales
instead of forwarding the sales tax and license fees to the state.  And
for cars being sold on consignment, they didn't pay the seller, either.
-- 
Doug Pardee -- CalComp -- {hardy,savax,seismo,decvax,ihnp4}!terak!doug