I Hate Money!

Money clipart

Or I at least hate needing it! Money should have been a four-letter word! I know we all need it but all it seems to do is get us into trouble! It gets individuals in trouble, it gets politicians in trouble, and it gets businesses in trouble.

We all go through periods in our lives or the life of our business when things just get messed up. Stuff like this can happen. It happens either because the decisions made were not always the best ones, because you’ve lost your job, because you’ve lost your spouse, or just because you’ve temporarily lost your mind.

When it’s time to return to some kind of normalcy with your personal or business finances, consolidation loans are a miracle come true. For some. The problem is that some of these loans do more harm than good.

A borrower may want to borrow money that in reality they cannot safely pay back and risk-taking lenders, like New Century Financial, irresponsibly lend money to people who will never be able to pay them back.

The buzz is out there about problems with sub-prime lenders. I have heard it on the Internet, I have heard it from bloggers whose opinions I respect, and I have seen it in hard-copy publications like Financial Week. It shook me. It does that when drama impacts your own backyard!

Home123, a subsidiary (or something like that) of New Century Financial, has a Honolulu office. They do what any other lender does. They review your request, they review your financial situation, and then they review their ability to assist you with your needs.

New Century’s problem is with those offices that don’t see the big picture. They don’t assess the borrowers ability to pay, they don’t pay attention to the company’s regulations, and their only focus is their commission.

I’m not as caustic about it as my blogger friend, Sauer Kraut, but the extent of the damage and the impact it has already had is far-reaching! It even has the investment managers biting their nails over mortgage-backed securities and it’s giving them second thoughts about investing client monies in these things!

New Century called me the other day to remind me about my payment — not because I was late, but because it was almost due and because they’re, quite obviously, afraid. I was going to say nervous, but I think fear is a more appropriate definition at this point. I let the caller know that he scared me because I thought I forgot or something.

He said they have had a problem with payments being late. “Not yours,” he said quickly so as not to offend, “but many are.” I told him that I doubted there were that many late payments from Honolulu because the Honolulu office of Home123 “knows how to dot their I’s and cross their T’s!” He agreed.

I have it on good authority that the Honolulu office of Home123 has always been careful not to get the borrower or themselves into trouble. From my own experience I have to agree. Yes, I got myself into debt trouble, and they bailed me out!

New Century Financial is terrified (or should be), the Honolulu office of Home123 is going to come through this unscathed (I hope), and I still hate muny! That’s right, M-U-N-Y. It IS a four-letter word!

Since we’re on a rock and safely away from the heart of this mess, the Honolulu office still has its doors open. They may not be able to lend money at the moment, but they’re still there! I’ll update this as I hear more.

841 Bishop Street, Suite 2001
Honolulu, Hawaii 96813

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2 responses so far ↓

  • 1 sauerkraut // Apr 25, 2007 at 4:43 pm

    Around here, that company was closing on loans and charging fees for mortgage originations but then not funding the loans. They charged the fees but leaving homeowners without the mortgages. I’m glad it’s working out for you. Make sure you continue to make the payments regardless of what happens to them. If the office closes and your payments come back to you uncashed, make sure you open an escrow account at a regular bank and then deposit the full payments in that account. That way you get to keep your house! 🙂

  • 2 Evelyn // Apr 25, 2007 at 5:49 pm

    Hi SauerKraut! Thank you for stopping by and leaving a comment! Yes, I saw that part about failing to fund the loans. I cannot even imagine such a thing! You may have been more caustic and “catty” about it, but you had good cause! No such beast around here! This island is just too small for such monkey business! I think they would be run outta town! There’s certainly no place to hide… unless they take to swimming! 🙂

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