New Home Mortgage
Elimination Scam
Jeanette Joy Fisher
Beware of Mortgage
Elimination Scams!
It's every homeowner's
fantasy: to own their home free and clear. There are
lots of legitimate ways to pay off your mortgage
loan faster, but here's the latest scam for folks
hoping to eliminate their entire 30-year
mortgage--in less than a year.
Here's how it works. A "mortgage elimination"
company posts ads in magazines, on the Web, in
newspapers, or anywhere else they can find victims,
promising that their system is legal and effective.
One of the strangest arguments, though persuasive to
potential victims, is that lenders don't really lend
money. Although it's a convoluted argument, the
bottom line is that lenders borrow money from other
lenders, and when the lending chain is followed all
the way to its source, it turns out to be the
federal government, which prints money on ink and
paper, meaning that the money has no real value.
Since that’s the case, it was really the victim who
generated the money the first place. If the victim
buys that argument, it means their mortgage note is
meaningless and no money is actually owed.
Conspiracy enthusiasts love that sort of talk,
especially if it's back up by hints that agencies
such as the FBI don't want us to know about the true
lending process, because they're afraid that when
the American public finds out, the banking industry
will no longer be able to cheat innocent homebuyers
out of their hard-earned cash.
The next step is for the homeowner to send a check
for several thousand dollars, on the mortgage
eliminator's promise to guide them through the
process and to represent them in court, if
necessary. After that, one of two things will
happen. Some mortgage eliminators will simply
disappear, and the victim will never hear from them
again. Others will actually deliver a program, which
inevitably will lead to the homeowner's loss of
their home through foreclosure.
Here's how that second option works. The mortgage
eliminator tells the homeowner to go to the county
clerk's office and file a discharge of debt form,
stating that the mortgage is paid in full. That’s
not the case, of course, but when clerk records the
form, it does appear as if the property is owned
free and clear. Next comes the part where scam
artists really clean up. With the property seemingly
free and clear, the homeowner can now apply for more
loans, and the proceeds are then split, with the
mortgage eliminator often getting the larger
portion. Everything seems fine--until the county
clerk and original lender discover the scam and
confront the homeowner, who is soon caught up in a
huge legal and financial bind, as well as facing
possible fraud and conspiracy charges and jail time.
The saddest part of this scam is that the most
vulnerable people are those who are already facing
bankruptcy or foreclosure. Everyone dreams of owning
their home free and clear--but when it comes to
paying off your mortgage, remember the old adage: if
it seems to good to be true, it probably is.
Copyright © 2006 Jeanette J. Fisher
Beware of Predatory
Lenders
Jeanette
Fisher teaches how to get out from under credit card debt,
how to use credit to make money, and six ways to
build strong credit to finance your first home and
multiple investment properties. For a free credit
advice and free ebook "Credit Tips for Mortgage
Financing," see
Worry-Free Credit Information:
Free credit card debt help today!
|
