Mortgage Elimination Programs

[Rael]

Anyone listened through one of these demos, or have been/are involved with one?

An old friend wants to "webinar" (on-line demo) his program to me on reducing debt, saying he is paying off his 15 years of debt in only 6. I'm not against hearing his pitch at all, and since he is an old friend I have no problem telling him if I'm not interested.

I've done a little research and found the scam stigma attached to some (or many) of them. I'm not assuming his program is a scam, nor am I assuming it is legitimate. I don't know who his program is affiliated with, though I will find out next time we talk.

Just wanted to hear a few thoughts from anyone who have been involved in one of these, good or bad and why. TIA.

 

[GWguy]

Don't know about any of those programs, obviously check them out real well.

Something I've been doing for a long time is a program my mortgage company calls Bi-Saver. Other institutions have different names for it, but you pay half your mortgage every 2 weeks instead of the whole amount once a month. By paying half of it early, you reduce your interest more quickly. I cut my payback by 7 years or so.

 

[Rael]

Don't know about any of those programs, obviously check them out real well.

Something I've been doing for a long time is a program my mortgage company calls Bi-Saver. Other institutions have different names for it, but you pay half your mortgage every 2 weeks instead of the whole amount once a month. By paying half of it early, you reduce your interest more quickly. I cut my payback by 7 years or so.

Yeah, I've seen those too. I'm more comfortable with those (even though I haven't done that, either...not sure why, maybe just laziness ). They sound like less risk than some "new and improved" program, which automatically makes me skeptical. Thanks, GW.

 

[nosey]

My problem with the bi-weekly payment is that in th emonth you start the program you pay your mortgage twice---once is your regular first of the month payment and then they also take half out twice in the some month. I hope I explained that correctly. We are trying to figure out if we will go that route agin. I am interested on everyone's thoughts.

 

[Chasey_Lane]

By paying half of it early, you reduce your interest more quickly. I cut my payback by 7 years or so.

AND if you make an extra payment roughly equal to one month's mortgage a year, you can cut back additional years.

 

[GWguy]

AND if you make an extra payment roughly equal to one month's mortgage a year, you can cut back additional years.

Absolutely. ANYTHING you can put toward the principal at anytime is a good thing. I wish I had more to put in each month.

 

[GWguy]

My problem with the bi-weekly payment is that in th emonth you start the program you pay your mortgage twice---once is your regular first of the month payment and then they also take half out twice in the some month. I hope I explained that correctly. We are trying to figure out if we will go that route agin. I am interested on everyone's thoughts.

I don't remember that happening with mine. One month I paid the whole month, the next I paid the same amount but split over 2 week periods.

Even if that's the case, that one month extra you put in cut months off your mortgage like Chasey said.

 

[BoyGenius]

Anyone listened through one of these demos, or have been/are involved with one?

An old friend wants to "webinar" (on-line demo) his program to me on reducing debt, saying he is paying off his 15 years of debt in only 6. I'm not against hearing his pitch at all, and since he is an old friend I have no problem telling him if I'm not interested.

I've done a little research and found the scam stigma attached to some (or many) of them. I'm not assuming his program is a scam, nor am I assuming it is legitimate. I don't know who his program is affiliated with, though I will find out next time we talk.

Just wanted to hear a few thoughts from anyone who have been involved in one of these, good or bad and why. TIA.

Mortgage elimination scams tend to operate like Madoff's ponzi scheme. You make your house payments to me and I promise to pay the bank, and payoff your mortgage quick. In reality what happens is I keep taking the money of new investors to make the payments of my earliest investors while I live like Richie Rich off your dough. In the end, almost everyone gets screwed really bad as I run out of money to make anybody's payments.

Mortgage Fraud Blog - Web-Based Mortgage Elimination Scam Shut Down

 

[Rael]

Mortgage elimination scams tend to operate like Madoff's ponzi scheme. You make your house payments to me and I promise to pay the bank, and payoff your mortgage quick. In reality what happens is I keep taking the money of new investors to make the payments of my earliest investors while I live like Richie Rich off your dough. In the end, almost everyone gets screwed really bad as I run out of money to make anybody's payments.

Mortgage Fraud Blog - Web-Based Mortgage Elimination Scam Shut Down

I asked him to tell me more before I agree to hear his pitch. If it has anything to do with me having to recruit others (or any more work on my part), I'm done. Gut feel is that if it sounds too good to be true, it probably is. Thanks, all.

 

[Larry Gude]

Absolutely. ANYTHING you can put toward the principal at anytime is a good thing. I wish I had more to put in each month.

That's not true. It used to be. If you are paying for a house with the intention of owning it, getting it paid off, that is one thing. However, if the goal is to earn the appreciation and then sell it, realize the gain, putting a penny into principle is pointless.

Of course, when the music stops and you don't have a chair, well, that can be kinda sucky.

 

[ProfMoneyWise]

There is only one way to eliminate your mortgage. That is to pay the principal. Some programs sell you a software program (some for $3,500) to help you manage your money via a HELOC. You end up making numerous money moves in/out of the HELOC and if you do the math it does do what it says. However, if you sit and think about it you could have done all this yourself by just paying extra against the principal.

Bi-Weekly payments offered by mortgage holders are nothing more than a means to end up making one extra payment a year. Again, you can do the same thing yourself. You can save up and make one extra payment all at once or you can divide your payment by 12 and add that much extra to your monthly payment. Be sure and designate when you maket the payment that this extra is to be applied to the principal. Again, you should not pay extra to do this. Some will charge a fee to even set it up.

All in all the ony way to reduce your principal faster is to pay more against the principal than is currently scheduled. You do not need a software program or system to make this happen.

As we all know there is no secret to this and with the internet/info available there is no reason anyone should get into something and claim they did not understand later on.

Good Luck and I know of no foreclosures ever ocurring on paid for real estate.

 

[BoyGenius]

I asked him to tell me more before I agree to hear his pitch. If it has anything to do with me having to recruit others (or any more work on my part), I'm done. Gut feel is that if it sounds too good to be true, it probably is. Thanks, all.

If you give your mortgage payment to anyone other than you're lender, I'll bet you live to regret doing it.

 

[Rael]

There is only one way to eliminate your mortgage. That is to pay the principal. Some programs sell you a software program (some for $3,500) to help you manage your money via a HELOC. You end up making numerous money moves in/out of the HELOC and if you do the math it does do what it says. However, if you sit and think about it you could have done all this yourself by just paying extra against the principal.

Bi-Weekly payments offered by mortgage holders are nothing more than a means to end up making one extra payment a year. Again, you can do the same thing yourself. You can save up and make one extra payment all at once or you can divide your payment by 12 and add that much extra to your monthly payment. Be sure and designate when you maket the payment that this extra is to be applied to the principal. Again, you should not pay extra to do this. Some will charge a fee to even set it up.

All in all the ony way to reduce your principal faster is to pay more against the principal than is currently scheduled. You do not need a software program or system to make this happen.

As we all know there is no secret to this and with the internet/info available there is no reason anyone should get into something and claim they did not understand later on.

Good Luck and I know of no foreclosures ever ocurring on paid for real estate.

Well, you hit the nail on the head. It is a legitimate company, but one that sells a product which does not put it under some type of pyramid scheme. Sounds like you've dealt with one or more of these before, maybe not having been taken by one...but you know what I mean.

You don't need to buy something to pay down your mortgage, you just need to pay down your mortgage...sounds too simple, doesn't it?

I told him I wasn't interested. He really needs to get out of this company and try something else, or he'll be frustrated with each potential client who learns there are smarter ways. Yeah, there's a sucker born every minute, but who is the sucker when there are no clients?

Thanks for the words.

 

[GWguy]

That's not true. It used to be. If you are paying for a house with the intention of owning it, getting it paid off, that is one thing. However, if the goal is to earn the appreciation and then sell it, realize the gain, putting a penny into principle is pointless.

Of course, when the music stops and you don't have a chair, well, that can be kinda sucky.

Point taken. I had been looking at it from the long-term home owner's position, which I am. It will be a very short time now until it's all paid off. Looking forward to that day.

 

[Larry Gude]

Point taken. I had been looking at it from the long-term home owner's position, which I am. It will be a very short time now until it's all paid off. Looking forward to that day.

Smart way to look at a home.

 

[somdrenter]

Good Luck and I know of no foreclosures ever ocurring on paid for real estate.

Tax deed sale - Wikipedia, the free encyclopedia

 

[ProfMoneyWise]

Tax Deed Sale is not a foreclosure. Tax Deed Sale goes into effect if you fall behind on your taxes. Foreclosure happens if you fall behind on your mortgage.

However your point is well made in that once your home is paid off you still have financial obligations pertaining to the property. Good post.

 

[Tilted]

Tax Deed Sale is not a foreclosure. Tax Deed Sale goes into effect if you fall behind on your taxes. Foreclosure happens if you fall behind on your mortgage.

However your point is well made in that once your home is paid off you still have financial obligations pertaining to the property. Good post.

But, there can be foreclosures on properties that don't have a mortgage (for taxes or other situations where someone has a lien against a property). Foreclosure just refers to the a removal of the right of redemption - and doesn't necessarily have to be pursuant to a defaulted mortgage.

The legal mechanisms of foreclosure can be different, depending on a jurisdiction's laws and other circumstances, but foreclosure need not refer to mortgages.