Okay, this is NOT intended as a debate on wraps - I could care less whether or not people choose to do wraps and what others think of them, so don't jump on this and shout me down.
What it actually pertains to is this comment by Neil Jenman: 'Unlike traditional loans, where the buyers become the owners, wrap loans are different. The title to the home remains in the name of the wrapper. The buyers do not become the owners until they make their final payment in 25 or 30 years.'
Okay, again, this is NOT an attack on Jenman either, but rather a question about his statement. In it, he says that loans from banks are different to loans from wrappers. In that, if wrappees don't pay their loans, they can be evicted, but he insinuates (spelling?) that those with bank loans will not be.
Umm, hello Neil? Try NOT paying your loan back to the bank and see what happens.... I remember reading an article about home 'ownership' a few years ago where the author stated that people who believe they own their home BEFORE the loan is paid out are kidding themselves - and I thnk he's right. You don't own the home until the last payment is made, standard loan or wrap.
The point of this is that it annoys me that those that choose to attack wraps use emotional language like Neil's to make wrappers out to be latter day pirates, like the banks are goody goodies that will let you stay in a home indefinitely whether or not you pay the loan back. Besides, all the banks are these days are just wrappers themselves. They buy money from the RBA and sell it at an inflated price to us, the consumers.
What it actually pertains to is this comment by Neil Jenman: 'Unlike traditional loans, where the buyers become the owners, wrap loans are different. The title to the home remains in the name of the wrapper. The buyers do not become the owners until they make their final payment in 25 or 30 years.'
Okay, again, this is NOT an attack on Jenman either, but rather a question about his statement. In it, he says that loans from banks are different to loans from wrappers. In that, if wrappees don't pay their loans, they can be evicted, but he insinuates (spelling?) that those with bank loans will not be.
Umm, hello Neil? Try NOT paying your loan back to the bank and see what happens.... I remember reading an article about home 'ownership' a few years ago where the author stated that people who believe they own their home BEFORE the loan is paid out are kidding themselves - and I thnk he's right. You don't own the home until the last payment is made, standard loan or wrap.
The point of this is that it annoys me that those that choose to attack wraps use emotional language like Neil's to make wrappers out to be latter day pirates, like the banks are goody goodies that will let you stay in a home indefinitely whether or not you pay the loan back. Besides, all the banks are these days are just wrappers themselves. They buy money from the RBA and sell it at an inflated price to us, the consumers.
