it's his tenant... but yes, they become lien holders on the property.. i am still trying to figure out exactly how they do things..

I'd love to know as well as those interest rates are significantly higher than I've done and I'd like to know how he's doing it ;)

I've been doing the same via 2nd mortgages which are really secure, but by the way you described it, it doesn't sound like he's doing the formality of registering a mortgage, just using the house as standard collateral for non-payers.
WG

i will let you know as soon as i find out.. my friend is trying to get into this on a limited basis and i am trying to get involved as well...

Thanks, I appreciate it.
WG

Quarter video peepshow arcades are making a comeback......

only 25 cents and the customers provide their own servicing.

Is the goal to ultimately take the home away from borrower? I can't imagine many people who live in a $50K home being able to afford a $25K loan at 20% APR.

He means 50k in equity. If the house is worth $350k and the mortgage still has $300k left to be paid, then the house has $50k in equity.
WG

That's a bit different then. It read as though he was talking about $50K homes being used as collateral which would be even worse than a payday loan for those poor folks.

same for canadians...I am doing better than I have in a while with the conversion rate

let me clarify... they can borrow up to 50% of their equity...

however, i think the company will only loan up to $50k, so may house value would be $100k..

and yes, its almost as bad as a payday loan, but payday loans are typically 20% per month i think..

this company lends to higher risk people that dont have the credit to get conventional loans or lines of credit..

i am still learning all the details, but so far they seem to have a very low default rate and their clients seem to borrow only what they can pay back..

The whole crisis is doing VERY GOOD for my business.

People are turning away from paying hundreds of thousands to traditional media and buying banners.

They are realizing that it's a lot more worthwhile to invest into SE marketing, which I do right now.

Also I'm doing really well with setting up non-traditional affiliate programs.

I'll be good.

I in no way think things are "that bad" or will ever get that way, but I do think more people are searching for that kind of thing these days, and hell if I can sell em on a silly ebook or a non perishable goods package, great.