Los Angeles Bankruptcy Blog

More layoffs to come.

You see these signs everywhere:

“Free List of Forclosure Homes, call 24/7″ (yes, misspelled like that)

People want to buy homes cheap, but the reality is, it’s not so simple

Foreclosures aren’t the quick path to riches many imagine. “Some people show up [at the auctions] to observe and see if it’s something that’s easy and a quick way to make money,” she says. “A lot of them find out it takes a lot more work than they think.”

The mortgage situation is going to be a meltdown much worse that it is today. This was written six months ago, but we’re nowhere near bottom yet.

….and this is after they laid off 1300 in two waves last week.

I wonder if they’ll file bankruptcy (Chapter 11) in a few months?

And just think! This is a reputable company that makes loans to quality borrowers!

Just imagine what the shady lenders are feeling!

Ditech, the famous mortgage lender with its slick TV commercials these past years, has a new slogan: “People are Smart.” This replaces the bumbling loan guy who is always cursing, “lost ANOTHER one to Ditech!” Foiled again!

But why did he always lose another one to Ditech?

And why is a mortgage company making a blanket statement about a trait concerning all of humanity? After all, if everyone was smart, that would be just normal. Kind of like Lake Woebegone, where all kids are smarter than average.

But I digress from my point.

Why?

I have a theory. Ditech doesn’t really think you’re smart. Or me either. They think you’re a sucker for their business tricks, and will do what it takes to get you into a loan.

Sometimes, these loans aren’t what’s best for you.

They look around, and see New Century and their subprime company filing bankruptcy. They also see Countrywide having good credit customers defaulting. Foreclosures are up nationwide.

So what to do? They’re convincing and flattering a future jury pool that, golly, your eyes… they are like pools of clear water. We never meant to trick anyone to get into a bad mortgage. See? We think you’re smart! Everyone in the whole world who can see our ads is smart. We don’t think you’re dumb “marks” for our ploys, so why would you come after us?

Of course, this is all just my opinion. But can you come up with a better explanation for such universal flattery having nothing to do with the nature of their business?