Decision One - Bad Choice

Here is another example of a mortgage company that financed the entire purchase of a house. This episode takes place in Morristown, NJ.

DESCRIPTION

FEATURED LISTING

11 Rooms
4 Bedrooms
2 Fullbaths

1 Car Width, Blacktop
Level Lot
2 Units, Forced Hot Air
Public Water
Gas-Natural

Taxes $9,142


Here is the financial history -

• Purchased Oct. 2006 for $600,000
• First Mortgage Oct. 2006 for $480000 ARM with Decision One Mortgage
• Second Mortgage Oct. 2006 for $120,000 with Decision One Mortgage
• Currently for Sale at $465,000

So within 15 months of purchase the mortgage company is losing $135,000 on the mortgage and approximately $28,000 in Realtor fees. The owner did not take a financial hit - probably just a hit to their credit rating. But that $163,000 has to come from somewhere...

Of course Decision One Mortgage shut it's doors last Sept.

Every one of the companies that I have found the funded 100% of the properties have closed down - First Magnus, WMC and now Decision One. All also took a huge hit on the selling price.