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Banks a ticking me off!

Started by Woodhauler, April 28, 2014, 08:00:56 PM

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Woodhauler

Going to drop the bank that was going to give me a home equity loan to build my garage!!! Little over 2 weeks now and they still have not got things right!! Have had a 30,000 dollar line of credit there for 10 yrs. I wanted to increase it to 80,000$ . Told them i wanted 50,000 for garage and leave 30,000 for incase money! First they thought i wanted it bumped to 50 total, told them no want it 80 total. Just  to much of a mess! Going to take all my stuff to the bank my equipment is at! They are home owned and you deal with the person that makes the call! Talked to them today, will be going maybe tommorow to do the paper work. Locked in for 10yrs at 3.75% interest!!!   First 18months is 2,75% intro rate!!!Should be alot better !I should add, if i took the whole 80,000 and went 10 yrs i would still have less payments per month then i do now.
2013 westernstar tri-axle with 2015 rotobec elite 80 loader!Sold 2000 westernstar tractor with stairs air ride trailer and a 1985 huskybrute 175 T/L loader!

dgdrls

My father had a term for banks which I will not repeat here.

If you have access to a Credit Union I highly recommend giving them a shot.

Best
DGDrls


WmFritz

Quote from: dgdrls on April 28, 2014, 09:48:02 PM
If you have access to a Credit Union I highly recommend giving them a shot.
DGDrls



X2.... I've had one CU account for 25+ years and other various other banks at the same time.
I got fed up with some of the fees and nonsense from the banks, closed down the accounts and for the last 5-6 years, only use my CU.
~Bill

2012 Homebuilt Bandmill
1959 Detroit built Ferguson TO35

Woodhauler

My bank that has my equipment loans already told me on the phone i was all set! Just got to get the paper work done. They talk money there! Still owned and operated in maine. No person down in rhode island or somewhere making my mind up for me.
2013 westernstar tri-axle with 2015 rotobec elite 80 loader!Sold 2000 westernstar tractor with stairs air ride trailer and a 1985 huskybrute 175 T/L loader!

Ken

I have dealt with a credit union for 20 years now.  A few years back they gave me grief when I was looking for a large loan.  When they found out I was shopping other lenders they were quick to approve my request and things have been good since then.
Lots of toys for working in the bush

Woodhauler

Made the trip to see my other bank, all is good!  ;D
2013 westernstar tri-axle with 2015 rotobec elite 80 loader!Sold 2000 westernstar tractor with stairs air ride trailer and a 1985 huskybrute 175 T/L loader!

gspren

  For our day to day checking and savings I use a credit union. For loans I really liked Farm Credit, you give them a call and they come out to see you and handed you a check before they left. At least that's the way it was around here 15 years ago when I last needed a loan.
Stihl 041, 044 & 261, Kubota 400 RTV, Kubota BX 2670, Ferris Zero turn

jargo432

I talked to a guy that told me a story about a bank (the one with a stagecoach for a logo).  Said he had to sign a contract for 1 year just to have a checking account.  In that first year they messed him around in a lot of different ways so he decided to close the account on the one year anniversary.  Well they said it was a day too soon so THEY opened a credit account in his name to pay the early closing fee, then sold the credit account to a collection agency.  It was a $500 fee for closing the account one day early.  He kept getting calls from the collection agency trying to get him to pay it.  I told him the bank doesn't have the right to open a credit account for him and they commited a crime in doing so, and he should call the athorities.   Some banks are horrible, I don't know how they stay in business.
Jack of all trades.

snowstorm

now this is a true story about collection people. i dont really admit to knowing this guy but. he wanted go out on his own rather than work for a collection co. this is how its done . with credit cards he buys bad credit card dept. for $.10 or less on the dollar then tries to collect what the credit card co could not. in the end he went under owing lots to a credit card co

36 coupe

Credit union pays me 3/10 of 1 percent on savings and loans it out at 3.75 percent.Banks and credit unions are thieves .There was a time when you could make income from savings.

timberlinetree

I read that having $100,000 in a CD will cost you around $4000-$8000 for time it is in. Every thing is going up except interest rates that the banks pay. I tell the kids it like this.
When I was a kid in the early 80's I could get 4 candy bars for a buck. If I stored a dollar in jar and saved it for when I was older( today) to buy candy bars I wouldn't be able to :'(. We are paying 6% on our forwarder loan but only getting 0.5% on our savings >:(. What happened with the bank bail out  :-\?

I've met Vets who have lived but still lost their lives... Thank a Vet

Family man and loving it :)

trapper

 timberlinetree your not very old I got 6 candy bars for a quarter 3 if they were the large hersheys
stihl ms241cm ms261cm  echo 310 400 suzuki  log arch made by stepson several logrite tools woodmizer LT30

Magicman

We got two scoops of ice cream on a cone for 5 cents .  And then you could get a one scoop refill if you did not eat the cone.   ;D
Knothole Sawmill, LLC     '98 Wood-Mizer LT40SuperHydraulic   WM Million BF Club Member   WM Pro Sawyer Network

It's Weird being the Same Age as Old People

Never allow your "need" to make money to exceed your "desire" to provide quality service.....The Magicman

Dave Shepard

How many cones did you wear out getting refills? :D

I don't have a whole lot that is good to say about banks. Smaller seems to be better. When I opened my first checking account, there was only one bank building, no branches. Now, they are sucking up everything in every state abutting my county. I asked them when they were going to open a branch on the moon. They didn't like that. ;D
Wood-Mizer LT40HDD51-WR Wireless, Kubota L48, Honda Rincon 650, TJ208 G-S, and a 60"LogRite!

Magicman

Quote from: Dave Shepard on May 04, 2014, 05:46:36 PMHow many cones did you wear out getting refills? :D 
Couldn't get but one, but he made the refill very nice.   The Ice Cream Distributor tried to make him stop because it was selling it cheaper than he paid, but he told him that it was his ice cream and he could sell it for whatever he wanted.

When the highway was widened they moved the granite 5 cent memorial marker, but I do not know what became of it.
Knothole Sawmill, LLC     '98 Wood-Mizer LT40SuperHydraulic   WM Million BF Club Member   WM Pro Sawyer Network

It's Weird being the Same Age as Old People

Never allow your "need" to make money to exceed your "desire" to provide quality service.....The Magicman

goose63

50 cents got me into the movies and a pop and popcorn
goose
if you find your self in a deep hole stop digging
saw logs all day what do you get lots of lumber and a day older
thank you to all the vets

jargo432

I don't know how many Dave Ramsey fans we have out here, but I'm one.  I like the way he talks about banks.  "Banks are not non profit organizations."
Jack of all trades.

iwiegian

Quote from: jargo432 on May 04, 2014, 10:46:08 PM
I don't know how many Dave Ramsey fans we have out here, but I'm one.  I like the way he talks about banks.  "Banks are not non profit organizations."

+1 on the Dave Ramsey went to the class he puts on. Out of dept and NEVER borrow money anymore. Wish I had heard of him much much sooner. His teaching's changed my life.  8)

SLawyer Dave

A major part of my law practice is doing bankruptcies for clients, (which I love to do).  I know that may shock some, but I really enjoy helping people file bankruptcies, because our current financial systems are so out of whack, and unfair to the general consumer.  I generally start out telling them why the "banks" are not their friends, and why they won't work with people to lower the payments and interests rates when money gets tight. 

My father was a banker.  7 of my 8 aunts and uncles were in banking.  My first job was working for my dad's bank.  None of my family is in banking anymore, because the fact is that we really no longer have a "banking industry" in the U.S. anymore.  We have huge "financial institutions", that act as a bank and sell you stocks, bonds, insurance, investments, etc.  The idea that I was raised with; that banks are working to "help" their clients with responsible credit and assure a strong and healthy economy, are now a myth.  Now the entire industry is focused on a single issue, "how much money can we make".  They are not really concerned about the health of the economy, because they believe they are too big to fail, and that the government will have to bail them out if there is a serious problem. (Which as we all know, has actually happened).  They also don't have a single concern for their clients or the general public.  If it means a few more pennies in their pockets, they will gladly screw you and everyone else over to do it.

That is why as soon as you are late on a payment, your interest rate will double.  With the extra fees they attach, it can effectively triple.  Do they really believe that increasing your debt balance is going to make it easier for you to pay them?  No.  What the whole system is based on is that as soon as they think you are in trouble, they want to increase the size of your "debt" as quickly as they can.  In this way they make more money.....even if you default and pay them nothing.  Why you ask.....because every dollar they can claim you owed them, they will write off their taxes as a loss.  So they have no incentive to work with you or anyone else.  Their only incentive is to make your debt as large as possible, so they can claim a bigger loss. 

My advice to people is that the only debt they should have is for a mortgage on their home.  Being able to buy improved real property without a mortgage is just not really doable for most of us.  The only new cars anyone should ever buy should only be if they can get the 0% interest rates or if they can write off the expense on their taxes.  Otherwise save your money and buy used cars.  Let someone else take the 5k depreciation the instant you drive the vehicle off the lot. 

As for credit cards, use a debit or bank card that will work as a Visa or MasterCard without the interest payments.  Yes, this means you can only spend what you have in the bank.....but that should be your drop dead (Stop Shopping) signal anyways.  Stop buying the crap you don't need and focus on building up a cash reserve you can use to buy things at huge discounts and to take care of the little emergencies that always crop up. 

Cash is king in a down economy.  Look for distressed sellers who need to generate cash or who are willing to allow you to simply "take over the payments".  If you have the cash, you can often times get huge discounts.  Also look for ways you can use other people's money.  Owner financing is a great way to be able to lower your borrowing costs.  Such deals can be harder to put together, and will only work in certain situations, but can be very rewarding.  It pretty much removes the risk of investing, (as you aren't using your cash to invest), rather, it becomes a cash flow analysis, (can you simply afford the monthly payment).

My law partner and I just put in a bid on a decent sized commercial/professional property/project that my property management business has been managing for the last few years.  The owner invested in it as his retirement at the top of the market.  He has been trying to sell it, because he just is not getting the return he was expecting, and can't get his money out.  Now there is no way my partner and I would qualify for a bank's multimillion dollar loan to buy the place, (and we wouldn't want to put up everything we have as collateral), but no one else is even interested in buying it.  So he is stuck.  He needs to invest money into delayed maintenance and repairs, but can't afford to do so, which makes it that much harder to acquire and keep good tenants.  So he is in a downward spiral and his investment is actually losing money.

If he accepts our offer, then he will have a set monthly income from our monthly payment and not have to worry about all of the costs.  While it certainly won't be the amount he was originally hoping to yield from his investment, it will be greater than he is currently realizing and it will provide him 20 years of retirement security.  We will be paying him interest, but it will be far less than what a bank would require.  However, it is also significantly higher than what he could get if he were to sell the property at a steep discount and invest the money in a "safe" cd or bank account.  For us, we can move our 2 businesses into the project, (taking over the hardest offices to rent), and will actually save money on a monthly basis based on our current rental costs when we add in the existing rental income.  Then we will be in a position to make the repairs and upgrades, that should actually increase the profits.  We will also be actually earning something for our monthly payments, and in 20 years own the project outright.  So he gets a stable retirement income, and we get to build up equity in a property that will reduce our current monthly costs and give us our own retirement investment.  If some unforeseeable event were to occur, we could then renegotiate the terms, or walk away without risk of losing our homes, cars, property etc.  Again, its a low risk deal for us, where we don't get all of our cash reserves tied up.  On the other hand, with those improvements, even if we were to later walk away, he would actually be in a better position, because he would get back a more valuable property.  So again, it is low risk to everyone involved and gives him income stability which seems to be his biggest focus.   

A number of years ago, I was approached by a contractor who had leveraged the purchase of a number of houses.  Though he got them at a good deal, he did not have the cash flow to keep above water while he was trying to get them rented.  I negotiated a deal to buy one of the houses under an installment land sales agreement.  I gave him a small down payment, (just enough to keep him solvent through the rental process), and moved into the house.  I had 5 years to consummate the purchase, and simply paid the mortgage for him every month.  However, because I had "equitable title" in the property up front, I got to claim all of the interest as a tax deduction.  In the end, I saved money every month after the first year given the low "mortgage payment" and being able to write off the interest.  Four years later, I went ahead and got a conventional mortgage to purchase the home, and walked into over $30k in equity because the house had appreciated so much in that 4 years.  However, if it had not appreciated, I also could have walked away from the deal and treated it as a rent to own contract that I could terminate.  So again, it is trying to craft deals that both save you money in the short term, and provide you with long term benefit with little or no risk.

I bought my truck with less than 5,000 miles on it.  They guy couldn't afford to keep it.  He had an umbrella loan that tied his other vehicles and house together, so if he defaulted he was going to lose everything.  Why the idiot even had the truck I will never understand as he had been making payments on it for 36 months.....and had hardly ever driven it.  So I agreed to take it over for payments.  He signed off on the pink slip, we did a written contract, and I made the monthly payments for the last 2 years of the financing.  No down payment, no bank fees, no hit to my credit rating.  I just agreed to make the monthly payments for 24 months and pretty much bought an almost brand new, fully decked out, 4x4 truck for less than 50 cents on the dollar.   

I still have that truck, and it has almost 200,000 miles on it.  Probably the best single purchase I have ever made.  However, I have probably tried to put together 20 or 30 other type deals like these that did not come to fruition.  So again, it takes longer, and you might not find the perfect situation right away, but it is *DanG well worth it to keep looking for distressed sellers who are willing to take a chance rather than lose everything.



Jason_AliceMae Farms

Another +1 for Dave Ramsey.  I have not taken his class but I do listen to him whenever I can.  I just have the mortgage left to go then my plan is no more debt/loans EVER!  May take longer to do things in life but it will be without the hassle of a bank and loans because I don't like dealing with them either.
Watching over 90 acres of the earth with 50 acres being forest.

Someday I would like to be able to say that I left thes 90 acres healthier than when I started watching over them.

Raider Bill

Quote from: Jason_AliceMae Farms on May 07, 2014, 02:09:03 PM
Another +1 for Dave Ramsey.  I have not taken his class but I do listen to him whenever I can.  I just have the mortgage left to go then my plan is no more debt/loans EVER!  May take longer to do things in life but it will be without the hassle of a bank and loans because I don't like dealing with them either.

Same here, I listen to his shows. Good Advice.
The First 70 years of childhood is always the hardest.

maple flats

When I was in school, we got 4% interest on savings accounts and mortgages were at 6%. That's a 50% margin. Today mortgages are at about 3%, savings should be at 2% to match what we had in the 50's. What happened?
logging small time for years but just learning how,  2012 36 HP Mahindra tractor, 3point log arch, 8000# class excavator, lifts 2500# and sets logs on mill precisely where needed, Woodland Mills HM130Max , maple syrup a hobby that consumes my time. looking to learn blacksmithing.

iwiegian

This is my opinion on this and I am by no means an expert. the powers that be no longer want money to be in savings accounts as they see this as not adding to the economy even though the theory was that when I saved money in a bank they then loaned it to someone in need of borrowing money. Another reason is easy capital to spur the economy and another reason is the government dept. Cheap interest lets the feds borrow more and make lower interest payments on that dept. Well how far off am I I would be interested in others opinions as I am just a country boy.

submarinesailor

For those of you who are veterans, you should look at joining the Navy Federal Credit Union.  Any current member or former member of the military can become a member.  And it's the largest CU in the world.  My wife and I have been with them for just over 30 years.  Yes, we have had a few minor problems with errors/mistakes over time.  But for the most part, I have found them to be OUTSTANDING!  We have purchased 3 houses and have re-financed this one several times with them.  Currently, I do ALL my banking with them.

One other suggestion, again if you are ex-military, look at USAA.  They have many programs that are very similar to the NFCU.  I really like their insurance programs.

Bruce

Woodhauler

I will not finace any toys, but big ticket items i still will pay the piper!!!  Kinda hard to save up 250,000 for a new truck or a piece of equipment. Maybe the hobby loggers can save up 5-10 grand to buy something to work with.
2013 westernstar tri-axle with 2015 rotobec elite 80 loader!Sold 2000 westernstar tractor with stairs air ride trailer and a 1985 huskybrute 175 T/L loader!

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