A couple of days ago I had a conversation with a friend who has a “Bait and Switch” house at the Plantation. He told me he was looking into legal action against his lender for this action. When this picture came across my desk today, the same expression came to mind.
Further musing while watching the action in the picture I realized that the fishermen in this picture kind of reflect the people who today are surviving the economic downturn fine because they never went for the financial institutions’ “Bait and Switch” propositions. For those who could not refuse the apple and recently found out that it had a nasty worm inside now struggle with the implication of “Bait and Switch” a process explained as follows:
- A company, institution or individual comes with a proposition to you that really makes it easy for you to commit to, say a 3% equity loan on your home in the amount of 80% of the current value of your home.
- The offerer pledges in the legal paperwork not to sell or transfer this loan to anyone (be careful here because the clause may state with or without your approval.
- A little while later however this loan ends up in a credit default swap package and someone else with a completely different agenda now owns your loan.
This is typically a Bait and Switch: you were baited and hooked by the complete package, yet the conditions of the package were changed without your knowledge, approval (or maybe hidden in way too small print, to be able to read even with magnifying glasses).
There are many homeowners who are finding themselves “under water” with their property, looking into class action legal steps against these borrowing institutions, because the original proposal was so enticing that the bait and hooking process was a given. People had to go for it. The Switch that followed created the legal booboo and actually might find some real momentum in legal circles.
Watching this picture I admire all these guys not even turning their head to look at the BAITING and hooking process that walks behind them. They are no doubt the ones that are still having their equitable homes and just bide their time. Me, I’m thinking of taking up fishing… and that my dear readers would be a huge SWITCH.