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Revisiting Lisa's Lounge and Mortgage Scams

from Late For ElsaGate · #73

Audio-only archive episode — no video to seek.

3 min

Tim and Ray recall a famous old episode about a Long Island dive bar called Lisa's Lounge and Tim's past selling mortgages, including a bit about "first payment default" scams in the mortgage business.

In this bit7 moments
  • 0:38Tim recalls listening to one of their most famous episodes, "Life in the Blood Box," about Lisa's lounge.
  • 0:57He bought a house in Baldwin, New York when he was around 20-25 and it was foreclosed on after he stopped making payments.
  • 1:17Tim explains the mortgage industry concept of "first payment default," where banks loan hundreds of thousands and borrowers never make the first payment.
  • 2:03Realtors tell people their monthly payment will be $1,800 but don't always disclose the full details upfront.
  • 2:28Tim's personal rule was to ensure clients made at least three payments to avoid investigation, unlike straight scammers.
  • 2:55People would pitch refinance deals offering cash-outs on top, with the scam being to just make that first payment before bailing.
  • 3:30Tim plugs the archive of past episodes listeners should go back and hear.
Mentioned here

Baldwin, New YorkLisa's LoungeRay Kump

All 22 moments in this episode →